Telecom gear maker HFCL Limited (HFCL), has raised Rs 600 crore through a QIP issue. The QIP gains shall be utilised towards funding of capital expenditure requirements for setting up of new manufacturing facilities, capacity expansions and expenditure on R&D and product development.

The QIP has shown a valuable response from institutional investors like Reliance Ventures, Quant Mutual Fund, IIFL Wealth, Elara India, Discovery, Segantii, Millennium amongst others who participated in the fund raise programme.

The company is one of the main players that has received permission under the production linked incentive scheme for telecom products, besides fibre business the company is also developing various 5G products which include radios amongst others.

“The QIP proceeds shall be predominantly utilised towards the funding of capital expenditure requirements for setting up of new manufacturing facilities, capacity expansions and expenditure on R&D and product development,” the company said.

“With the establishment of a new plant for manufacturing of telecom products and the capacity expansion of optical fibre, optical fibre cable while also augmenting our Goa and Chennai plants, the recent strengthening of the global leadership team and our new investments in product development, HFCL is geared up to capitalise on the upcoming growth opportunity in the decade of digital transformation that we are seeing across industry verticals,” Mahendra Nahata, Managing Director, HFCL said.