Domestic telecom equipments manufacturer HFCL Limited has signed a Share Subscription and Shareholders’ Agreement on 15th March 2021 with Nimpaa Telecommunications Private Limited to acquire upto 50% of the paid-up equity share capital of Nimpaa on a fully diluted basis in one or more tranches by way of subscribing its equity shares. Nimpaa notably is a newly incorporate company having been incorporated on September 22, 2020.
The company is involved in cable reinforcement solutions with HFCL acquiring the said company keeping in line with its thrust on addition of new telecom network products in the field of communications, specifically Aramid Reinforced Plastic (ARD) rods.
ARD rods will be manufactured and supplied by Nimpaa for HFCL and its subsidiaries and associate companies captive consumption. The acquisition is likely to be completed by April 2021. The acquisition is happening for a cash consideration of Rs 1 crore towards subscription amount of a fresh equity shares of Nimpaa. The 50.0% of the diluted paid-up equity share capital of Nimpaa would be acquired by way of subscribing equity shares of Nimpaa at a total cash consideration of Rs. One crore.
Nimpaa was incorporated to carry on the business of manufacture all types of equipment, components, accessories, and cables required for telecommunication systems, networks, and services. The acquisition will help HFCL to competitively address the business of next-generation telecom wires} cables.