In terms of Regulations 32(6) of the SEBI Listing Regulations read with Regulation 173A(4) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 ("SEBI ICDR Regulations"), ....
Awaiting price reaction for this filing.
HFCL Limited has submitted the Monitoring Agency Report from CARE Ratings Limited for the quarter ended March 31, 2025, tracking the use of funds raised through its Qualified Institutions Placement (QIP) of August 2023. The company had raised Rs. 352 crore by allotting 5.10 crore equity shares at Rs. 69 per share to qualified institutional buyers. Of the net proceeds of Rs. 342.50 crore, Rs. 280.81 crore has been utilised so far, with Rs. 61.88 crore still unutilised and parked in fixed deposits with SBI Bank. During Q4 FY25, only Rs. 10.31 crore was spent, all of it on capital expenditure. Funds allocated for R&D (Rs. 85 crore), debt repayment (Rs. 74.04 crore), working capital (Rs. 75 crore), and general corporate purposes (Rs. 33.46 crore) have been fully utilised. The Monitoring Agency reported no deviation from the stated objects of the issue.
This is a routine regulatory filing confirming HFCL is using its QIP funds as disclosed. Shareholders can take comfort that there are no deviations from stated purposes, though about 18% of the net proceeds (Rs. 61.88 crore) remains undeployed in fixed deposits, indicating slower-than-expected capital expenditure rollout which is now targeted for completion by July 2025.