Monitoring Agency Report on the utilisation of proceeds raised through Qualified InstitutionsPlacement for the Quarter ended June 30, 2025
HFCL · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
CARE Ratings Limited, the monitoring agency for HFCL's Rs. 352 crore Qualified Institutions Placement (done in August 2023), has confirmed no deviation from the stated objects of the issue. Out of the net proceeds of Rs. 342.50 crore, the company has utilised Rs. 284.49 crore so far, leaving Rs. 58.20 crore unutilised as of June 30, 2025. All categories except Capital Expenditure are fully utilised — R&D (Rs. 85 cr), short-term borrowing repayment (Rs. 74.04 cr), working capital (Rs. 75 cr), and general corporate purposes (Rs. 33.46 cr) are done. Only Rs. 16.80 crore of the planned Rs. 75 crore capital expenditure has been deployed, with Rs. 3.68 crore spent during Q1FY26. The unutilised Rs. 58.20 crore is parked in fixed deposits with SBI Bank (totalling Rs. 64.70 crore including accrued interest of Rs. 6.77 crore). The company has indicated it will seek board approval to extend the capital expenditure deadline beyond the original July 2025 target.
Mostly a routine compliance filing with no deviation from stated objects, which is positive for shareholders. However, the slow pace of capital expenditure deployment (only ~22% of the Rs. 75 cr target utilised after nearly two years) and the need to extend the deadline may raise mild concerns about project execution timelines, though funds remain safely parked in bank fixed deposits earning interest.