Telecom gear maker HFCL Limited on Monday (September 1) said it has executed a share purchase agreement (SPA) to divest its entire stake in Nivetti Systems Private Limited. The company holds 2,17,594 equity shares, representing 15.19% of Nivetti’s total shareholding.
The shares are being sold to Trinity Tech Solutions, Bengaluru, for a total consideration of ₹52.51 crore. The transaction will be completed in tranches, with ₹12 crore already received today, September 1, and the remaining amount to be paid on or before October 15.
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The buyer, Trinity Tech Solutions, does not belong to the promoter or promoter group, and the deal does not fall within the ambit of related party transactions. HFCL said the SPA was signed on September 1, and the disposal of the stake is expected to be completed by October 15.
First quarter results
HFCL reported a consolidated net loss of ₹32 crore compared to a profit of ₹111 crore in the same quarter last year. Revenue from operations declined 25% year-on-year to ₹871 crore, down from ₹1,158 crore in Q1FY25.
The company’s operating performance also deteriorated, with EBITDA falling 83% to ₹29 crore from ₹174 crore in the corresponding period last year. EBITDA margin contracted to 3.3% from 15% year-on-year.
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Alongside the earnings, HFCL also announced key corporate actions aimed at long-term growth. The company’s board approved a fundraising plan of up to ₹700 crore through equity or other convertible instruments. The funds are expected to be deployed for strategic investments, expansion in the defence and telecom sectors, working capital needs, and debt repayment.
Shares of HFCL Ltd ended at ₹71.30, up by ₹1.07 or 1.52%, on the BSE today (September 1).
