Black Box Secures Rs 410 Cr In Funding To Drive Digital Infra Growth
Black Box raises Rs 410 crore in funding through a preferential issue of 98,32,123 fully convertible warrants at a price of 417 pounds per warrant
BSE-listed company Black Box has closed Rs 410 crore in funding via preferential issue to fuel growth and expansion across the digital infrastructure industry. Its Board of Directors has passed a proposal to issue 98,32,123 fully convertible warrants at Rs 417 each for an amount of Rs 410 crore on each record date.
This round of funding consisted of Rs 200 crore from existing promoters, Rs 200 crore through the marquee investors consortium, and another Rs 10 crore through the key management personnel.
Black Box was earlier called AGC Networks and has been under major transformation ever since it acquired Black Box Corporation in 2019, which was based in the United States. The company has managed to operate more efficiently, cut costs and enhance gross and EBITDA margins. This has resulted in tremendous enhancement in the firm’s bottom line. In the recent years, Black Box has seen both growth and margin expansion and its management is now targeting the top line of USD 2 billion over the next 3 years, accompanied by an EBITDA margin of 10 per cent.
The company works with large customers like Meta (Facebook), Amazon, Microsoft, Google, Intel, and Bank of America, among others. It serves more than 250 of the Fortune 500 companies and three out of five hyperscalers in cloud solutions. In its present status, the company plans to expand the portion of the large corporate clients, thus serving fewer little and unprofitable ones.
In September 2023, Black Box inaugurated its new centre of excellence in Bengaluru, India. The new centre is expected to increase the company's margin by around Rs 50 crore in the near term.
