HFCL LIMITED — Capital/Financing Update 2024

May 3, 2024

HFCL/SEC/24-25

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May 03, 2024

	BSE Ltd. 1stFloor, New Trading Wing, Rotunda Building Phiroze Jeejeebhoy Towers, Dalal Street, Fort Mumbai – 400001 corp.relations@bseindia.com Security Code No.: 500183		National Stock Exchange of India Ltd. Exchange Plaza, 5thFloor, C – 1, Block G Bandra – Kurla Complex, Bandra (E) Mumbai – 400051 cmlist@nse.co.in Security Code No.: HFCL

• RE: Regulation 32(1) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”).

Subject: Statement of deviation(s) or variation(s), if any, of utilization of proceeds received from Qualified Institutions Placement (QIP).

Dear Sir(s)/ Madam,

We would like to inform that the Company had raised funds by way of allotment of 5,10,14,491 (Five Crores Ten Lakhs Fourteen Thousand Four Hundred and Ninety One) equity shares of face value of Re.1/- each, to qualified institutional buyers ("QIBs") , at a price of Rs.69/- per Equity Share (including premium of Rs.68/- per Equity Share) , pursuant to the resolution passed by the Board of Directors dated September 02, 2022, special resolution passed by the Shareholders at their 35[th] Annual General Meeting (AGM) held on 30[th] September, 2022, the preliminary placement document dated August 28, 2023, the placement document dated August 31, 2023 and resolution of the Fund Raising Committee of the Board of Directors dated August 31, 2023 (the “ Issue ”).

We would further like to inform that the Audit Committee, at its meeting held on May 03, 2024, has reviewed the actual utilization of funds received for an amount aggregating ~Rs.352 crores, pursuant to the Issue.

In this connection, we submit that there is no deviation or variation from the objects of the Issue, in the utilization of proceeds, as stated in the placement document or explanatory statement to the aforesaid AGM Notice, during the quarter ended March 31, 2024.

In terms of Regulations 32(1), 32(2) and 32(3) of the SEBI Listing Regulations, a statement of deviation or variation, if any, in utilisation of funds raised through Qualified Institutions Placement ( QIP ), for the quarter ended March 31, 2024, duly reviewed by the Audit Committee, in the prescribed format is also enclosed herewith.

You are requested to take the above information on records and disseminate the same on your respective websites.

Thanking you.

Yours faithfully,

For HFCL Limited Digitally signed by Manoj Baid Manoj Date: Baid 2024.05.03 16:31:21 +05'30' (Manoj Baid) President & Company Secretary

Encl.: Statement of deviation or variation in utilization of funds.

Regd. Office & Works : 8, Electronics Complex, Chambaghat, Solan-173213 (H.P.) Tel: (01792) 230644, 230645, 230647 Fax: (01792) 231902 Corporate Identity Number: L64200HP1987PLC007466

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HFCL Limited

HFCL Limited	HFCL Limited	HFCL Limited	HFCL Limited	HFCL Limited	HFCL Limited	HFCL Limited
Statement of Deviation/ Variation in utilization of funds raised
Name of listed entity			HFCL Limited
Mode of Fund Raising			Qualified Institutions Placement(QIP)
Date of RaisingFunds			August 31, 2023
Amount Raised			Rs.352 Crores(approx.)
Report filed forQuarter ended			March 31, 2024
MonitoringAgency			Yes
MonitoringAgencyName,if applicable			Care Ratings Limited
Is there a Deviation/Variation in use of funds raised			No
If yes, whether the same is pursuant to change in terms of a contract or objects,which was approved bythe shareholders			Not Applicable
If Yes,Date of shareholder Approval			Not Applicable
Explanation for the Deviation/Variation			Not Applicable
Comments of the Audit Committee after review			No comments
Comments of the auditors,if any			No comments
Objects for which funds have been raised and where there has been a deviation, in the following table
Original Object	Modified Object, if any	Original Allocation	Modified allocation, if any	Funds Utilized	Amount of Deviation/ Variation for the quarter according to applicable object	Remark s if any
(a) Capital expenditure	N.A.	75.00	N.A.	2.50	N.A.
(b) Research and Development Expenditure	N.A.	85.00	N.A.	83.02	N.A.
(c) Repayment/prepayment of our short term borrowings	N.A.	74.04	N.A.	74.04	N.A.
(d) Funding Working Capital Requirements	N.A.	75.00	N.A.	75.00	N.A.
(e) General corporate purposes	N.A.	33.46	33.65*	33.65	N.A.
Total		342.50 (net of* issue expenses)**		268.21
*The actual issue proceeds comes to ~Rs.352 Crores and as per placement document, the expenses related to the issue were estimated at Rs.9.50 Crores. However, the actual issue related expenses incurred as on December 31, 2023 were Rs.9.31 Crores. Accordingly, the balance unutilised Rs.0.19 Crores were already transferred to the Monitoring Account on December 30, 2023. During the quarter ended December 31, 2023, the utilisation of funds under the object “General corporate purposes” increased from estimated amount of Rs.33.46 Crores to Rs.33.65 Crores due to decline in actualization of issue expenses from the estimated issue expenses by Rs.0.19 Crores. Accordingly, the net issue proceeds allocated towards various Objects is Rs.342.69 Crores.
Deviation or variation could mean:
(a)Deviation in the objects orpurposes for which the funds have been raised or
(b)Deviation in the amount of funds actuallyutilized as against what was originallydisclosed or
(c) Change in terms of a contract referred to in the fund-raising document i.e., prospectus, letter of offer, etc. Manoj Baid (President & CompanySecretary) Mano j Baid Digitally signed by Manoj Baid Date: 2024.05.03 16:35:53 +05'30'

(b) Deviation in the amount of funds actually utilized as against what was originally disclosed or

(c) Change in terms of a contract referred to in the fund-raising document i.e., prospectus, letter of offer, etc.

Mano Digitally signed by Manoj Baid Date: 2024.05.03 16:35:53 +05'30' j Baid

Manoj Baid

(President & Company Secretary)