Black Box Ltd, an ESSAR Group promoted digital infrastructure solution integrator, announced on Friday that it has secured Rs 410 crore through a preferential issue to accelerate growth and expansion in the digital infrastructure sector.
The company's Board of Directors in its meeting held on Friday, approved the issuance in one or more tranches. Black Box supports services and technology products to businesses in the US, Europe, India, Asia Pacific, Middle East and Latin America, and has around 4,000 professionals globally.
Black Box's Chief Executive Officer Sanjeev Verma said in the Friday statement; “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.”
The funding round has garnered Rs 200 crore from the existing promoters of the company, Rs 200 crore from the consortium of marquee investors comprises of foreign institutional investors and high-net-worth individuals and Rs 10 crore by key management personnel of the company, Black Box said.
After the conversion of warrants into equity, promoter shareholding will be marginally lower from existing 71.1% to 69.8%. Black Box, which continues to be Essar’s key investment in the technology space, said the funds raised is going to be growth capital for the company and will be invested across several key areas including expansion of data centre capacity, which is expected to grow exponentially over the next 3-5 years fuelled by adoption of Cloud and AI.
Black Box will also deploy capital to expand its solutions portfolio for its enterprise customers and data centre operators including Hyperscalers in the areas of connectivity infrastructure and ntworking that will be critical to support increasing data traffic and demands of better user experience at the edge. The investment is also to support the company’s strategic expansion and growth initiatives.