Essar Group's Black Box to Raise Rs 410 Crore for Digital Infrastructure Expansion
IT firm Black Box, under Essar Group, will raise Rs 410 crore through a preferential issue to fund its growth in the digital infrastructure sector. The company's board has approved issuing 98,32,123 fully convertible warrants. This capital will facilitate enhancements in data centers, network infrastructure, and more.
![Essar Group's Black Box to Raise Rs 410 Crore for Digital Infrastructure Expansion](https://devdiscourse.blob.core.windows.net/aiimagegallery/02_08_2024_09_13_48_4931107.png)
Essar Group's IT arm, Black Box, announced on Friday that its board has sanctioned plans to garner up to Rs 410 crore through a preferential issue. This fundraising initiative includes Rs 200 crore from the company's current promoters, Rs 200 crore from marquee investors such as foreign institutional investors, and Rs 10 crore from the company's key management personnel, a statement revealed.
In a company statement, Black Box Limited disclosed a commitment for raising funds totaling Rs 410 crore via preferential issue, designed to spur growth and expansion within the digital infrastructure sector. The board, during a recent meeting, endorsed the issuance of 98,32,123 fully convertible warrants at Rs 417 per warrant, in one or more tranches.
Following the warrant-to-equity conversion, the promoter's shareholding will dip slightly from 71.1 percent to 69.8 percent. The generated capital is earmarked for investment across data centers, network infrastructure, research and development, and market expansion. According to the statement, this injection of funds will bolster strategic growth initiatives and technology solutions within essential industry verticals, with a focus on leadership hiring and enhancing sales and business development efforts in North America and emerging markets.
(With inputs from agencies.)
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