Mumbai, August 2, 2024 - Black Box Limited (BSE: 500463/NSE: BBOX), 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 crores via preferential issue aimed at accelerating growth and expansion in the 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 Rs. 417/- (Rupees Four Hundred and Seventeen Only) per warrant, aggregating to Rs. 410 crores (Rupees Four Hundred and Ten Crores Only) and each Warrant 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 crores from the existing promoters of the company, which shows the continued confidence on the business and its growth plans, Rs. 200 crores from the consortium of marquee investors comprises of foreign institutional investors & high-net-worth individuals and Rs. 10 crores by key management personnel of the company. After the conversion of warrants into equity, promoter shareholding will be marginally lower from existing 71.1% to 69.8%. 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 crores in FY24, growth of 59% on FY23 EBITDA and PAT of Rs. 138 crores in FY24 which is 5.8x on FY23 PAT. We expect continued growth momentum on EBITDA and PAT in current financial year too.
The fund raise capital is a growth capital for the Company and will be invested across several key areas:
Mr. 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.”
Mr. Deepak Bansal, Global Chief Financial Officer of Black Box Limited stated, “thankful to the existing investors for continued confidence and welcoming new investors as we embark on next phase of growth and profitability. The company remains committed to invest in the areas of growth and maintain sharp focus on operational efficiency and return on capital.”
Black Box Limited is global digital infrastructure integrator delivering network and 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. Black Box has strong service offerings in the areas of network integration, digital connectivity infrastructure, data Center build out, modern workplace and cybersecurity for businesses across various industries including financial services, technology, healthcare, retail, public services like airports etc., manufacturing and other sectors.
Statements in this document relating to future status, events, or circumstances, including but not limited to statements about plans and objectives, the progress and results of research and development, potential project characteristics, project potential and target dates for project related issues are forward-looking statements based on estimates and the anticipated effects of future events on current and developing circumstances. Such statements are subject to numerous risks and uncertainties and are not necessarily predictive of future results. Actual results may differ materially from those anticipated in the forward-looking statements. The company assumes no obligation to update forward-looking statements to reflect actual results changed assumptions or other factors.
