Black Box Limited secures `410 crore in funding to drive growth and expansion in digital infrastructure sector
Mumbai: Black Box Ltd, a premier trusted global digital infrastructure solution integrator delivering cutting-edge technology solutions and worldclass consulting services to businesses around the globe, announced that it has received commitment for raising of funds aggregating to Rs 410 crore via preferential issue aimed at accelerating growth and expansion in digital infrastructure sector.
The Board of Directors, in its meeting held on Friday, approved the issuance in one or more tranches, 98,32,123 fully convertible warrants, at a price of Rs 417/- (Rupees Four Hundred and Seventeen Only) per warrant, aggregating to Rs 410 crores (Rupees Four Hundred and Ten Crores Only) and each Warrants is convertible into 1 (One) equity share of face value of Rs 2/- (Rupees Two Only) each fully paid-up (‘Equity Share’) of the Company at a premium of Rs 415/- (Rupees Four Hundred and Fifteen Only) at the option of Proposed Allottee, in one or more tranches, at any time within 18 (Eighteen) months from the date of allotment of the Warrants in accordance with relevant provisions of SEBI ICDR Regulations.
The funding round has garnered Rs 200 crore from the existing promoters of the company, which shows the continued confidence on the business and its growth plans, Rs 200 crore from the consortium of marquee investors comprises of foreign institutional investors & high-net-worth individuals and Rs 10 crore by key management personnel of the company.
After the conversion of warrants into equity, promoter shareholding will be marginally lower from existing 71.1 per cent to 69.8 per cent. Black Box continues to be Essar’s key investment in the technology space.
Over the last couple of years, the company has focused on improving margins by taking several cost rationalisation initiatives and emphasis on enhancing the
productivity.
This has yielded positive outcomes leading to an increase in our EBITDA margins and Profit after Tax (PAT).
We had achieved EBITDA of Rs 428 crore in FY24, growth of 59 per cent on FY23 EBITDA and PAT of Rs 138 crore in FY24 which is 5.8x on FY23 PAT. We expect continued growth momentum on EBITDA and PAT in current financial year too.
