Summary:
HFCL has raised its planned capex to around Rs 18 billion to expand production of optical fibre, optical fibre cable and preform. The company’s board approved an additional Rs 8.2 billion investment, taking total planned capex from the earlier Rs 9.8 billion, with funding from internal accruals, warrant proceeds and borrowings. After completion, annual capacity is expected to reach 43.1 million fibre km for optical fibre, 62 million fibre km for optical fibre cable and 600 MT for preform.
HFCL has increased its planned capital expenditure (capex) to around Rs 18 billion to expand its manufacturing capacity for optical fibre, optical fibre cable and preform, the company said in a regulatory filing on Monday.
The board has approved an additional capacity expansion of 4.6 million fibre kilometres (km) annually for optical fibre, 5.64 million fibre km annually for optical fibre cable and 300 metric tonnes (MT) annually for preform. The expansion will require an additional capex of Rs 8.2 billion, taking the total planned investment to Rs 18 billion when combined with the previously approved Rs 9.8 billion. The investment will be financed through internal accruals, proceeds from a preferential issue of warrants to the promoter and a promoter group entity, along with borrowings from financial institutions.
Once the expansion is completed, HFCL’s annual manufacturing capacity is expected to increase to 43.1 million fibre km for optical fibre, 62 million fibre km for optical fibre cable and 600 MT for preform.
