HFCL bags advance purchase orders of ₹448 crore from BSNL, RailTel
- HFCL plans to execute the order with BSNL in 240 days from the date of PO. While it will take 180 days to execute the order for RailTel.
The Indian telecom company, HFCL on Wednesday received advance purchase orders aggregating to ₹447.81 crore from Bharat Sanchar Nigam Limited (BSNL) and RailTel Corporation of India Limited (RailTel). The company plans to execute the orders in less than a year. HFCL shares scaled up to climb nearly 5% during the day.
Of the total ₹447.81 crore, the order from BSNL amounted to ₹341.26 crore for the supply installation, commissioning, operation, and maintenance of CUPS BNG (Control Plane User Plane Separation Broadband Network Gateway) and associated subscriber Policy Manager & Authentication platform on turnkey basis.
Meanwhile, the remaining advance purchase order of ₹106.55 crore was for the supply, installation, testing, commissioning, integration with existing infra, operation, and maintenance of IP-based Video Surveillance System (VSS) at 180 railway stations under the western region of RailTel for and on behalf of Indian Railways.
HFCL plans to execute the order with BSNL in 240 days from the date of PO. While it will take 180 days to execute the order for RailTel.
On BSE, HFCL shares closed at ₹79.10 apiece up by 2.99%. During the trading hours, HFCL shares touched the day's high of ₹80.60 apiece - resulting in a nearly 4.95% jump on Tuesday.
The company's market valuation is around ₹10,898.07 crore at the closing price.
With over three decades of experience, HFCL has delivered innovative, customized, and competitive products and the latest solutions in the high technology telecommunications infrastructure sector.
HFCL specializes in manufacturing telecommunication equipment, optical fiber cables, and intelligent power systems. It is a leading manufacturer of optical fiber cables, optical transport, power electronics and broadband equipment for the telecommunication industry
Earlier this, the HFCL board of directors approved fundraising of up to ₹112.8 crore by issuing warrants convertible to promoters and non-promoters. Also, the company received approval for raising ₹650 crore by way of private placement or preferential issue or public issue or rights issue, or qualified institutions placement.
HFCL plans to utilise the proceeds of these issuances for enhancing the R&D facilities, setting up new production facilities taking advantage of the Production Linked Incentive (PLI) and Design Led Incentive (DLI) scheme, and a higher level of backward integration which the Company believes will lead to significant improvement in the margins and profitability in the coming years.
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First Published:14 Sep 2022, 05:35 PM IST
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