1 day ago
HFCL Wins Rs 2,329 Crore Contract Despite Stock Slip
HFCL has received a large order to supply optical fibre cables.
The order will last for three years, from 2027 through 2029.
The company says the deal could be worth about Rs 2,329 crore.
The cables will be supplied to a global multinational platform.
HFCL said the agreement shows its ability to win long-term business.
Its founder, Mahendra Nahata, also owns a small part of Jio Platforms.
Reports estimate that this stake could be worth much more than he originally paid.
Jio Platforms has proposed selling new shares, which could slightly reduce Reliance Industries’ ownership.
HFCL’s overseas wholly owned subsidiary signed a three-year supply agreement with a global multinational platform.
The agreement covers multi-million fibre kilometres of high-fibre-count Optical Fiber Cables each year from CY27 to CY29.
HFCL estimates the contract’s total value at approximately $244 million, or Rs 2,329 crore.
Founder and managing director Mahendra Nahata is reported to hold a 0.54% stake in Jio Platforms.
Jio Platforms has proposed issuing 270 million new shares, potentially reducing Reliance Industries’ holding from 66.43% to 64.5%.
- Who
- HFCL’s overseas wholly owned subsidiary and a global multinational platform are parties to the supply agreement; Mahendra Nahata is HFCL’s founder and managing director.
- What
- HFCL secured a three-year agreement to supply high-fibre-count Optical Fiber Cables, estimated at approximately Rs 2,329 crore.
- Where
- The agreement is described in an HFCL filing with the Bombay Stock Exchange; the multinational platform’s location is not specified.
- When
- The cable supplies are scheduled for each calendar year from CY27 to CY29; Jio Platforms was incorporated on November 15, 2019.
- Why
- HFCL said the agreement reflects its technological capabilities, operational execution and customer relationships.
Key facts
- Contract value
- Approximately $244 million, equivalent to about Rs 2,329 crore
- Contract duration
- Three years
- Supply period
- Calendar years 2027 through 2029
- Product
- High-quality, high-fibre-count Optical Fiber Cables
- Nahata’s Jio Platforms stake
- 0.54%
- Estimated value of Nahata’s stake
- About $611 million, or nearly Rs 5,800 crore, based on a $114 billion valuation estimate
- Jio Platforms proposed issue
- 270 million new shares
Quotes
HFCL
The telecommunications company reporting the contract in a BSE filing
“The total value of the contract over its tenure is estimated at ~$244 million equivalent to ~Rs 2,329 crore.”
businesstoday.in
Sources
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