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Essar group backed tech firm Black Box Limited will raise ₹410 crores via preferential issue aimed at accelerating growth and expansion in digital infrastructure sector.
The Board of Directors, in its meeting held today, approved the issuance in one or more tranches, 98,32,123 fully convertible warrants, at a price of ₹417,
The funding round has garnered ₹200 crores from the existing promoters of the company and another ₹200 crores from the consortium of marquee investors comprises of foreign institutional investors and high-net-worth individuals. ₹10 crores has been by key management personnel of the company.
After the conversion of warrants into equity, promoter shareholding will be marginally lower from 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 with a profit of ₹138 crores in FY24 which is 5.8x compared to FY23.
The funds will be invested across several key areas including expansion of data centre build capabilities providing expanded services to hyperscalers, multi-tenant data centre operators and large enterprise data centre.
A portion of the funds will be allocated to innovation and development efforts aimed at pioneering new digital infrastructure solutions, including advancements in cloud computing infrastructure, cybersecurity, artificial intelligence and IoT.
Sanjeev Verma, Chief Executive Officer of Black Box Limited stated, “We are thrilled to have secured this capital, which will enable us to embark on an ambitious growth trajectory and enhance our digital infrastructure offerings and drive innovation in a rapidly evolving market.”
Black Box Limited is a digital infrastructure integrator delivering network and provides system integration services and solutions, support services and technology products to businesses in the United States, Europe, India, Asia Pacific, Middle East, Latin America and has around 4,000 professionals globally.
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