Black Box Ltd. to drive growth in digital infrastructure sector, expand Rs. 410 crore will get funds
Black Box Limited, a trusted global digital infrastructure solution integrator providing cutting-edge technology solutions and world-class consulting services to businesses across the globe, aims to accelerate growth and expansion through a preferential issue of Rs. 410 crore has been announced as a commitment to raise funds. In the field of digital infrastructure.
The board of directors of the company in its meeting held on Friday approved the issuance of 98,32,123 fully convertible warrants at Rs 417 each for a total of Rs 410 crore in one or more tranches. Each warrant is worth Rs. 2 shall be converted into one equity share of face value, at the option of the proposed allottee, in one or more installments, at any time, of each fully paid-up (equity share) of the company of Rs. 415 premium. Within 18 months from the date of allotment of warrants in accordance with relevant provisions of SEBI ICDR Rules.
The funding round from the company's existing promoters raised Rs. 200 crore, which shows continued confidence in the business and its growth plans, from a consortium of foreign institutional investors (FIIs) and high-net-worth marquee investors of Rs. 200 crores. Individuals worth (HNIs), and by key management personnel of the company Rs. 10 crores.
After the conversion of warrants into equity, the promoter's shareholding will decrease marginally to 69.8 percent from the existing 71.1 percent.
Essar continues to be a key investor in the field of black box technology.
Over the past two years, the company has focused on improving margins by undertaking several cost rationalization initiatives with a focus on enhancing productivity.
This has resulted in positive results leading to an increase in the company's EBITDA margins and profit after tax (PAT).
Company's EBITDA in FY24 was Rs. 428 crore, a growth of 59 per cent in FY23 EBITDA and FY24 at Rs. 138 crore PAT which is 5.8x of FY23 PAT. The company expects growth momentum in EBITDA and PAT in the current fiscal as well.
Fund raise capital is growth capital for a company and is invested in several key areas:
* Expansion of data center build capabilities: Data center capacity is expected to grow exponentially over the next 3-5 years due to the adoption of cloud and AI. Black Box has a strong presence in this segment and invests in the value chain as a dominant player providing extended services to hyperscalers, multi-tenant data center operators and large enterprise data centers.
* Advances in network infrastructure: Black Box will deploy capital to expand its solutions portfolio for its enterprise customers and decenter operators, including hyperscalers in the connectivity infrastructure and networking sectors, to support growing data traffic and demands for improved user experience. edge
* Innovation and Delivery: A portion of the funding will be allocated to innovation and development efforts aimed at pioneering new digital infrastructure solutions, including advances in cloud computing infrastructure, cybersecurity, AI and IoT.
* Go to market expansion: The investment will support the company's strategic expansion and growth initiatives in key industry verticals with related technology solutions, including the hiring of key leadership and significantly expanding its sales and business development efforts in North America and emerging markets.
Sanjeev Verma, Chief Executive Officer, Black Box Limited, said, "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 this rapidly evolving market."
Deepak Bansal, Chief Financial Officer, Black Box Limited, said, “We thank our existing investors for their continued confidence and welcoming new investors as we embark on the next phase of growth and profitability. The company is committed to investing in growth areas and maintaining a sharp focus on operational efficiency and return on capital.