HFCL rose 1.79% to Rs 28.40 after the company said it plans to acquire upto 50% stake in Nimpaa Telecommunications by subscribing its equity shares in one or more tranches.
HFCL will pay a cash consideration of Rs 1 crore for acquiring 50% of the diluted paid-up equity share capital of Nimpaa Telecommunications (Nimpaa). The acquisition will be completed by April 2021.
Nimpaa is a newly incorporated company and no financials have been prepared. It was incorporated to carry on the business of manufacturing all types of equipment, components, accessories and cables required for telecommunication systems, networks and services.
HFCL is acquiring stake in Nimpaa, keeping in line with thrust on addition of new telecom network products in the field of communications, specifically Aramid Reinforced Plastic (ARP) rods. ARP rods shall be manufactured and supplied by Nimpaa for HFCL, its subsidiaries and associate companies captive consumption.