HFCL Limited, a listed Indian company with manufacturing operations located in Himachal Pradesh, has formally approved a fund-raising initiative through a Qualified Institutions Placement (QIP) route, marking an important capital market development for the company.

The approval was granted by the Fund Raising Committee of Directors at its meeting held on December 22, 2025, as disclosed to both BSE Limited and the National Stock Exchange of India Limited (NSE) in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Background of the QIP Approval

The QIP approval follows a structured and phased decision-making process that began earlier in the year. The company had previously informed the stock exchanges on July 25, 2025, regarding the board’s approval to explore fund raising through eligible modes under applicable regulations.

Subsequently, shareholders of HFCL Limited approved the proposed fund raising by passing a special resolution at the Annual General Meeting (AGM) held on September 15, 2025, conducted through Video Conferencing (VC) / Other Audio-Visual Means (OAVM).

With both board-level and shareholder approvals in place, the Fund Raising Committee, duly authorized by the board, has now formally approved the issuance of equity shares through the QIP mechanism.

Structure of the Proposed Fund Raising

As per the disclosure, the proposed fund raising will be executed through the issuance of:

• Equity Shares of face value ₹1 each

• Issued via Qualified Institutions Placement

• In accordance with Chapter VI of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended

• Compliant with Sections 42 and 62 of the Companies Act, 2013, including applicable rules

The QIP route allows listed companies to raise capital efficiently from qualified institutional buyers, ensuring regulatory compliance while accessing institutional liquidity.

Role of the Fund Raising Committee

The Fund Raising Committee of Directors, constituted by the board of HFCL Limited, convened on December 22, 2025, and approved that the proposed fund raise shall be undertaken specifically through the QIP route.

The meeting commenced at 10:00 a.m. and concluded at 10:10 a.m., indicating swift procedural approval following completion of statutory prerequisites.

Regulatory Framework Governing the QIP

The QIP issuance will be governed by multiple regulatory frameworks, including:

• SEBI ICDR Regulations, 2018 (as amended)

• Companies Act, 2013, including rules made thereunder

• SEBI LODR Regulations, 2015

HFCL Limited has confirmed that the disclosure is being made in compliance with Regulation 30 and other applicable provisions, ensuring transparency and timely communication with the market.

Significance of QIP as a Fund-Raising Tool

Qualified Institutions Placement is widely regarded as an efficient capital-raising mechanism for listed companies due to:

• Faster execution compared to public offerings

• Participation restricted to institutional investors

• Flexibility in pricing and allocation

• Lower market volatility impact

By opting for the QIP route, HFCL Limited positions itself to strengthen its capital base while maintaining regulatory discipline and shareholder alignment.

Corporate Overview of HFCL Limited

HFCL Limited operates with its registered office and works located at Electronics Complex, Chambaghat, Solan, Himachal Pradesh. The company is listed on both major Indian stock exchanges:

• BSE Limited (Security Code: 500183)

• National Stock Exchange of India Limited (Symbol: HFCL)

The company’s Corporate Identity Number (CIN) is L64200HP1987PLC007466, reflecting its long-standing presence in India’s corporate landscape.

Governance and Approval Trail

The approval trail for the QIP underscores a structured governance process:

1. Board Approval – July 25, 2025

2. Shareholder Approval – AGM on September 15, 2025

3. Committee Approval – December 22, 2025

This sequential authorization highlights adherence to best corporate governance practices and statutory compliance.

Market Perspective

From a capital markets standpoint, the QIP approval signals:

• The company’s readiness to access institutional capital

• Strengthening of balance sheet flexibility

• Alignment with long-term strategic objectives

Institutional placements often attract long-term investors, contributing to improved shareholding stability.

Compliance and Disclosure

HFCL Limited has formally requested the stock exchanges to take the disclosure on record and treat the communication as compliance under:

• Regulation 30 of SEBI LODR Regulations, 2015

• Other applicable SEBI regulations

Such disclosures play a crucial role in maintaining investor confidence and market transparency.

Conclusion

The approval of a Qualified Institutions Placement by HFCL Limited marks a significant step in the company’s capital-raising journey. With all statutory approvals in place and the Fund Raising Committee’s clearance obtained, the company is positioned to proceed with institutional fund mobilisation in accordance with SEBI ICDR Regulations and the Companies Act.

This development reflects HFCL Limited’s proactive approach to financial planning, regulatory compliance, and capital market engagement, while reinforcing its commitment to transparent communication with shareholders and stakeholders.

Join our Telegram Channel for Latest News and Regular Updates.

Start your Mutual Fund Journey  by Opening Free Account in Asset Plus.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.