HFCL to Divest Entire 15.19% Stake in Nivetti Systems for ₹52.5 Crore

2 Sep 2025 , 10:44 AM

HFCL Limited announced on September 1 that it has signed a share purchase agreement (SPA) to sell its entire holding in Nivetti Systems Private Limited. The telecom gear maker owns 2,17,594 equity shares, representing 15.19% of Nivetti’s total shareholding.

The stake has been sold to Trinity Tech Solutions, Bengaluru, for a total value of ₹52.51 crore. The deal will be executed in tranches, with ₹12 crore received upfront on September 1 and the balance payable by October 15.

HFCL clarified that Trinity Tech Solutions is not part of its promoter group, and the divestment does not qualify as a related-party transaction. The SPA was signed on September 1, and the stake sale is expected to close by mid-October.

On the financial side, HFCL posted a consolidated net loss of ₹32 crore in the first quarter, compared with a profit of ₹111 crore in the same period last year. Revenue from operations fell 25% year-on-year to ₹871 crore, against ₹1,158 crore in Q1 FY25.

Operating performance weakened sharply, with EBITDA plunging 83% to ₹29 crore from ₹174 crore a year earlier. EBITDA margin slipped to 3.3%, down from 15% in the previous year’s quarter.

Despite the weak earnings, HFCL’s board cleared a fundraising plan of up to ₹700 crore through equity or convertible instruments. The company said the proceeds will be channelled into strategic investments, defence and telecom expansion, working capital, and debt repayment.

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