DBT Bureau
Bhubaneswar, 2 August 2024
Black Box Limited (BSE: 500463/NSE: BBOX) has received a commitment for raising Rs 410 crores through a preferential issue, aimed at accelerating growth and expansion in the digital infrastructure sector.
The Board of Directors, in its meeting, approved the issuance in one or more tranches of 98,32,123 fully convertible warrants at a price of Rs 417 per warrant, aggregating to Rs 410 crores. Each warrant is convertible into one equity share of face value Rs 2 each, fully paid-up, at a premium of Rs 415, at the option of the Proposed Allottee, in one or more tranches, at any time within 18 months from the date of allotment of the warrants, by the 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 in the business and its growth plans, Rs 200 crore from the consortium of marquee investors comprised 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 the 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 productivity. This has yielded positive outcomes leading to an increase in our EBITDA margins and Profit after Tax (PAT). company had achieved EBITDA of Rs 428 crores in FY24, a growth of 59% on FY23 EBITDA and PAT of Rs 138 crores in FY24 which is 5.8x on FY23 PAT.
