Kerry Packer picks up 10% stake in HFCL - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Kerry Packer picks up 10% stake in HFCL

Mar 8, 2000

In a recently concluded deal, Himachal Futuristic Communications Limited (HFCL) is to issue over 7 m shares (10% of equity) to Kerry Packer owned Consolidated Press Holdings (CPH) at a price of Rs 1,450 per share. The deal will lead to an inflow of Rs 10 bn into the company. The deal has been done at a discount to the price of the stock in the domestic markets. The HFCL stock ended trading at Rs 2,415 on the Bombay Stock Exchange (BSE), up a sharp 8% over the previous closing.

The deal with CPH also involves the setting up of two joint ventures. The first of these would involve providing software services and products while the second would focus on B2B e-commerce infrastructure and solutions.

Although the extent of CPH’s participation in HFCL has not yet been made clear it is apparent that the two companies may be looking at exploiting synergies to hop onto the ‘convergence’ bandwagon.

HFCL has a presence in the basic telephony services sector, albeit the presence is limited. In recent months the company has entered into several joint ventures, one of which, Smart Infosolutions, is gearing up for providing broadband services in the domestic markets. Another venture is looking at providing multimedia services. And not to forget, the company’s core business of telecom hardware has been performing very well, as demand from the government as well as the private sector has picked up dramatically.

The alliance will benefit HFCL in a number of ways. First, there will be an inflow of funds as fresh equity is being issued. This will enable the company to reduce its debt burden, which currently stands at over Rs 3.5 bn. These funds can then be used to fund the company’s new initiatives, most of which involve the technology sector.

Second, as part of the deal the company is setting up two joint ventures. These again will give a thrust to the company’s shift from being a hardware provider to a solutions provider for telecom and Internet (or software) related projects.

There could be additional benefits from this association. Kerry Packer has yet to establish his media presence in India. He has content but no distribution channel. This is where HFCL could play a key role. HFCL is already working on providing broadband and multimedia services. Thus, there is ample scope for the two to extend their partnership in view of their complementary competencies.

Equitymaster requests your view! Post a comment on "Kerry Packer picks up 10% stake in HFCL". Click here!

  

More Views on News

HFCL 2020-21 Annual Report Analysis (Annual Result Update)

Oct 27, 2021 | Updated on Oct 27, 2021

Here's an analysis of the annual report of HFCL for 2020-21. It includes a full income statement, balance sheet and cash flow analysis of HFCL. Also includes updates on the valuation of HFCL.

HFCL Announces Quarterly Results (2QFY22); Net Profit Up 60.9% (Quarterly Result Update)

Oct 18, 2021 | Updated on Oct 18, 2021

For the quarter ended September 2021, HFCL has posted a net profit of Rs 858 m (up 60.9% YoY). Sales on the other hand came in at Rs 11 bn (up 6.4% YoY). Read on for a complete analysis of HFCL's quarterly results.

HFCL Announces Quarterly Results (1QFY22); Net Profit Up 326.1% (Quarterly Result Update)

Jul 22, 2021 | Updated on Jul 22, 2021

For the quarter ended June 2021, HFCL has posted a net profit of Rs 909 m (up 326.1% YoY). Sales on the other hand came in at Rs 12 bn (up 72.5% YoY). Read on for a complete analysis of HFCL's quarterly results.

1,300% in One Year - Are You Kidding Me? (Views On News)

Nov 29, 2021

An amount of Rs 1 lakh invested in the midcap stock a year ago would have turned into Rs 15 lakh today.

Bharti Airtel's Humongous Rights Issue to Open on 5 October. Key Points Investors Should Know (Views On News)

Sep 23, 2021

Shares of Bharti Airtel trade near record high ahead of rights issue.

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

How to Find Your Next 10-Bagger in this Market (Profit Hunter)

Nov 19, 2021

The #1 make or break factor in your portfolio you shouldn't ignore.

MobiKwik IPO Opens for Subscription Soon. Key Things to Know Before Subscribing. (Views On News)

Nov 20, 2021

The Rs 19 bn issue is set to hit the market soon.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

HFCL SHARE PRICE


Dec 1, 2021 11:16 AM

TRACK HFCL

COMPARE HFCL WITH

MARKET STATS