Telecom Infrastructure Company Along with its Consortium Partners Emerge as the Lowest Bidders with Multiple Bids exceeding more than Rs 8,100 Crore for BharatNet Phase III Project
The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 65.04 per share and a whopping 660 per cent in 5 years.
HFCL Limited, India’s leading technology enterprise with operations in manufacturing of high-end telecom equipment, optical fiber and optical fiber cables and offering communication network solutions for telcos, defence and railway sector, announced today that HFCL-Rail Vikas Nigam Limited (RVNL)-Aerial Telecom Solutions Private Limited, a Consortium has been declared as the Lowest Bidders by Bharat Sanchar Nigam Limited (BSNL), for bids valued at Rs 6,925 crore to provide middle-mile network in Uttar Pradesh (East) and Uttar Pradesh (West) under the BharatNet Phase III programme of the Government of India.
Additionally, the Consortium will be awarded 10 years of O&M order at an annual rate of 5.5 per cent of capex for 1st five years and 6.5 per cent for the subsequent five years which will be of worth Rs 4,155 crore, after commissioning of the first ring of network. HFCL has also emerged as the top bidder for Punjab circle for a bid value of Rs 1,244 Crores in the BharatNet phase III tenders, on standalone basis. Furthermore, HFCL is expected to secure 10 years of O&M order valued at around Rs 746 crore with annual rates of 5.5 per cent per annum of capex for 1st five years and 6.5 per cent per annum of capex for next five years, after commissioning of the first ring of network.
The BharatNet Phase III is a transformative initiative aimed at bridging the digital divide in India. By connecting over 250,000-gram panchayats with high-speed fiber-optic networks, this phase will empower rural communities with access to essential digital services. The project's focus on IP-MPLS network architecture will enable the delivery of e-governance, e-health, and e-education services, even in the most remote areas. This ambitious endeavour will significantly enhance rural broadband infrastructure, creating opportunities for both established and new telecom service providers to expand their reach and cater to the growing digital demands of rural India.
HFCL, a leading player in the telecommunications industry, is committed to contributing to the success of the BharatNet Phase III. With a comprehensive portfolio of products and services, including optical fiber cables, routers, and power solutions, HFCL is well-positioned to support the deployment of advanced network infrastructure. By leveraging its expertise and manufacturing capabilities, HFCL is actively participating in the 'Make in India' initiative, driving the development of a robust and indigenous telecommunications ecosystem. This strategic alignment with the government's vision of 'Digital India' will accelerate the country's digital transformation and empower citizens across the nation.
Mr. Mahendra Nahata, Managing Director of HFCL said, “Our proven track record in executing strategically critical projects, strengthens our standing as trusted partner of the Government of India. HFCL is well placed with a diverse product line that includes routers, optical fiber cables, fiber connectivity solutions, transport solutions, power management solutions etc., to address the needs of the BharatNet Phase III program. As a trusted BSNL partner, we look forward to continued collaborations and contributing significantly to the success of BharatNet Phase-III program.”
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About the Company
HFCL is a leading technology company that designs and delivers advanced digital network solutions for telecommunication companies, enterprises, and governments. Backed by decades of experience in fiber optics and strong research and development capabilities, HFCL offers a comprehensive range of high-tech solutions, including 5G equipment, Wi-Fi systems, and optical fiber cables. Their in-house R&D centers and collaborations ensure cutting-edge products that meet the ever-changing demands of modern networks. With a commitment to quality, environmental responsibility, and providing the latest technology, HFCL has become a trusted partner for its customers worldwide.
Order Book Update: As of September 2024, the company’s order book stands at Rs 6,151 crore. Out of the total order book, Government orders are worth Rs 4,183 crore and private company orders are worth Rs 1,968 crore.
The company has a market cap of over Rs 18,000 crore. The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 65.04 per share and a whopping 660 per cent in 5 years. Investors should keep an eye on this multibagger telecom infrastructure stock.
Disclaimer: The article is for informational purposes only and not investment advice.