HFCL Ltd.'s share price rallied 4% in early trade on Friday after it bagged an order of about Rs 2,501 crore from state-owned telecommunications company Bharat Sanchar Nigam Ltd.
The order entails designing, supplying, constructing, installing, upgrading, as well as operating and maintaining the middle-mile network of BharatNet Phase III in the Punjab telecom circle.
The Gurugram-based telecommunications equipment manufacturer has been given three years for construction and upgrades of the network. This will be followed by 10 years of maintenance contract.
During the first five years of the maintenance contract, the company will receive operating expenditure at the rate of 5.5% per annum of capex. For the subsequent years, it will receive expenditure at the rate of 6.5% per annum of capex.
Giving a breakup of the order, HFCL said that it is split into a capex of approximately Rs 1,244.61 crore, operating expenditure for newly constructed network of approximately Rs 746.76 crore. It also includes an operating expenditure of approximately Rs 509.94 crore for the existing network.
HFCL Share Price Movement
HFCL share price surged as much as 4.3% at Rs 106.77 in early trade. It was trading 2.37% higher at Rs 104.77 by 9:40 a.m. The stock is up 25% in the last 12 months.
The total traded volume so far in the day stood at 6.3 times its 30-day average. The relative strength index was at 43.
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