HFCL shares surged over 6 percent after the company, along with partners Rail Vikas Nigam Ltd (RVNL) and Aerial Telecom Solutions, was selected as the lowest bidder for multiple BharatNet Phase III project bids, totaling Rs 8,100 crore.
By 1:30 PM, HFCL shares were up 2 percent at Rs 130. The stock has risen 53 percent on a year-to-date basis, significantly outperforming the Nifty 50, which grew by 12 percent in the same period.
The HFCL-led consortium won the bids for Uttar Pradesh East and West, with a project value of Rs 6,925 crore to build a middle-mile broadband network, part of a government effort to boost rural connectivity. Additionally, this consortium has a long-term operations and maintenance contract valued at Rs 4,155 crore over 10 years.
HFCL had also emerged as the leader for the Punjab circle with a standalone bid of Rs 1,244 crore. This includes a separate 10-year maintenance contract worth Rs 746 crore, the company said in a statement.
The BharatNet Phase III project is an ambitious part of the broadband expansion plan of India, thus connecting more than 250,000 gram panchayats and reaching out to approximately 640,000 villages. With the aim of offering uptown speeds of 100 Mbps, it would serve the support for digital services like e-health, e-education, and e-governance in order to bring rural areas online.
HFCL is a telecom infrastructure provider that offers outsourced design, engineering, deployment, and maintenance of high-value engineering telecom projects, system integration, and manufacturing of telecom equipment such as optical fiber and optic fiber cables.
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Source: Moneycontrol
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