HFCL to acquire 47.87 per cent stake in Bigcat Wireless

Himachal Futuristic Communications Limited (HFCL) announced after the trading hours on Tuesday that it has signed a term sheet with Bigcat Wireless Private Limited and its existing promoters to acquire up to 47.87 per cent of the diluted paid-up capital of the company. The total cash consideration of the acquisition is said to be Rs 22.50 crore.

The company indicated that the acquiring stake was keeping in-line with its thrust on the addition of next-generation products and solutions in the wireless communications domain, including 4G (LTE-Advanced), 5G and other advanced communication technologies, the development of which Bigcat is engaged in.

As per the term sheet, Bigcat shall continue to carry out the development of advanced wireless communication products including 4G and 5G wireless products and shall have a right to manufacture and sell these products as well as own Intellectual Property Rights (IPR) rights of certain products.

HFCL Limited is a company operating as a designer, manufacturer, assembler, and seller of telecommunication equipment. It produces equipment, such as Electronics Rural Automatic (ERAX), Electronic Private Automatic Branch Exchange (EPABX), transmission equipment, modems, Integrate Digital Network Systems (ISDN) component sub-system, wireless telephone, cellular radios, and multi-access rural radiotelephone system with their accessories and associated equipment.

At 9.30 am on Wednesday, the stock is trading at Rs 17.15, up by 1.18 per cent or Rs 0.20 per share. The 52-week high is recorded at Rs 25.30 and the 52-week low is Rs 16.75 on BSE.