Companies

AGC Networks raises ₹225 cr via issue of convertible warrants to promoters, promoter group

PTI New Delhi | Updated on January 11, 2021

This will increase their stake to 72.05 per cent from 68.94 per cent

AGC Networks Limited, a part of Essar Group, on Monday said it has raised ₹225 crore through issue of convertible warrants to promoters and promoter group of the company.

“The company has issued 33.33 lakh convertible warrants each convertible into equity share of face value ₹10, to the promoters and promoter group of the company at a price of ₹675 per warrant, aggregating to ₹225 crore,” AGC Networks Ltd said in a regulatory filing.

As on September 30, 2020, promoters and promoter group holding in the company stood at 68.94 per cent and this would increase to 72.05 per cent upon conversion of all warrants, AGC Networks said.

Also read: AGC Networks to acquire Fujisoft in Middle East

The company said the funds raised would be used to meet growth requirements of the company, reduction in liabilities and general corporate purposes.

Also read: Agc Networks Limited - Shareholding for the Period Ended June 30, 2019

“This infusion of equity by the promoters and promoter group, reiterates their commitment to the long-term goals of the company. The funds would also help the company increase its net worth and reduce liabilities, which will further strengthen the balance sheet of the company,” said Sanjeev Verma, Whole-time Director and CEO, AGC Networks.

Published on January 11, 2021

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