Black Box, an IT systems integrator backed by the Essar Group, has secured Rs 410 crore through a preferential issue. The funds will be used to expand its data center infrastructure services globally, leveraging the growing demand for AI computing.
Black Box, which counts major clients like Amazon, Google, and Microsoft, plans to invest in enhancing data center services for hyperscalers, multi-tenant data center operators, and large enterprises, along with boosting connectivity and networking infrastructure. A portion of the capital will also support sales and business development efforts in North America and other emerging markets.
The company’s Board of Directors approved the issuance of 98,32,123 fully convertible warrants at Rs 417 each, totaling Rs 410 crore, as stated in an exchange filing on Friday.
This funding round includes Rs 200 crore from existing promoters, another Rs 200 crore from foreign institutional investors and high-net-worth individuals, and Rs 10 crore from key management personnel. Following the conversion of warrants into equity, the promoter’s shareholding will slightly decrease from 71.1% to 69.8%.
For the fiscal year ending in March 2024, Black Box reported a net profit of Rs 138 crore, a 5.8-fold increase year-over-year. The company’s earnings before interest, tax, depreciation, and amortization stood at Rs 428 crore. Based in Mumbai, Black Box operates in 35 countries and provides services to 1,500 customers.
