In order to accelerate growth and expansion in the digital infrastructure sector, Black Box Limited, a reputable global integrator of digital infrastructure solutions that provides cutting-edge technology solutions and top-notch consulting services to businesses worldwide, announced that it has received commitments for raising funds totaling Rs 410 crore through preferential issues.
The company’s Board of Directors, at its meeting held on Friday, approved the issuance in one or more tranches, 98,32,123 fully convertible warrants at Rs 417 per warrant, aggregating to Rs 410 crore. Each warrant is convertible into one equity share of the face value of Rs 2, each fully paid-up (equity share) of the company at a premium of Rs 415 at the option of proposed allottee, in one or more tranches, at any time within 18 months from the date of allotment of the warrants in accordance with the relevant provisions of SEBI ICDR regulations.
The company’s current promoters have contributed Rs 200 crore to the funding round, demonstrating their ongoing faith in the business and its growth prospects. The group of marquee investors, which includes high-net-worth individuals (HNIs) and foreign institutional investors (FIIs), has contributed Rs 200 crore, and key management personnel have contributed Rs 10 crore.
Promoters will own 69.8% of the shares following the conversion of warrants into equity, a little decrease from their current 71.1 percent.
Essar’s principal technological investment remains Black Box.
The corporation has prioritized increasing productivity while pursuing various cost-reduction measures in the last few years in an effort to increase margins.
Positive results from this have increased the company’s profit after tax (PAT) and EBITDA margins.
The company’s FY24 EBITDA of Rs 428 crore represented a 59% increase over FY23 EBITDA, and FY24 PAT of Rs 138 crore represented a 5.8x increase over FY23 PAT. For the current fiscal year as well, the company anticipates strong growth momentum in EBITDA and PAT.
The funds raised will be used by the business as growth capital and will be distributed among various important areas:
* Expansion of Data Center Build Capabilities: The adoption of Cloud and AI is predicted to drive exponential growth in data center capacity over the next three to five years. Black Box is well-established in this market and plans to make significant investments along the value chain to become a dominating player offering larger services to operators of multi-tenant data centers, hyperscalers, and large enterprise data centers.
* Improvement of Network Infrastructure: Black Box will invest money to broaden the range of solutions it offers to its enterprise clients and data center operators, such as Hyperscalers, in the networking and connectivity infrastructure sectors. These areas are essential to meeting the demands of improved user experience at the edge and growing data traffic.
* Innovation and Delivery: A part of the funding will go toward research and development initiatives meant to pave the way for the introduction of novel digital infrastructure solutions, such as improvements in cybersecurity, IoT, cloud computing infrastructure, and artificial intelligence.
* Go To Market Expansion: With key leadership hiring, the investment will support the company’s growth initiatives and strategic expansion into key industry verticals with pertinent technology solutions. It will also significantly increase sales and business development efforts in both North America and emerging markets.
“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,” stated Sanjeev Verma, Chief Executive Officer of Black Box Limited.
“We are thankful to the existing investors for their continued confidence and welcoming new investors as we embark on the next phase of growth and profitability,” stated Deepak Bansal, Chief Financial Officer of Black Box Limited. The business is still dedicated to making growth-oriented investments and keeping a close eye on return on capital and operational effectiveness.
