HCL Infosystems, a leading Indian IT company, has announced the allotment of non-convertible debentures (NCDs) worth ₹100 crore to HCL Capital, a subsidiary of the HCL Group, through a private placement. This move is part of the company’s efforts to strengthen its financial position and improve its capital structure.
The NCDs, which have a face value of ₹10 lakh each, will carry an interest rate of 9.5% per annum and will mature in 36 months. The allotment of the NCDs was approved by the company’s board of directors at a meeting held on February 22, 2023. The proceeds from the issue will be used to meet the company’s working capital requirements and to repay existing debts.
This development is a significant milestone for HCL Infosystems, which has been working to revamp its business operations and improve its financial performance in recent years. The company has been focusing on building its services and solutions business, and has made significant investments in emerging technologies such as artificial intelligence, blockchain, and cybersecurity.
The allotment of NCDs to HCL Capital is also a testament to the strong relationship between the two companies. HCL Capital, which is a non-banking financial company (NBFC), has been providing financial support to HCL Infosystems and other companies within the HCL Group.
The private placement of NCDs is a common practice among Indian companies, as it allows them to raise funds from institutional investors and other entities without having to go through the public markets. This route is often preferred by companies that require funds quickly and want to avoid the complexities and regulatory requirements associated with public issues.
In a statement, HCL Infosystems said that the allotment of NCDs to HCL Capital will help the company to strengthen its financial position and improve its ability to invest in growth initiatives. The company also said that it is committed to creating value for its shareholders and stakeholders, and will continue to work towards achieving its business objectives.
Overall, the allotment of NCDs to HCL Capital is a positive development for HCL Infosystems, and reflects the company’s efforts to improve its financial position and build a strong foundation for future growth. With a strong balance sheet and a solid business strategy, HCL Infosystems is well-positioned to capitalize on emerging opportunities in the IT industry and drive long-term value creation for its stakeholders.