Onward Technologies Ltd’s board on Thursday approved raising of ₹70.2 crore from funds advised by Convergent Finance LLP in lieu of about 24.78 per cent stake in the digital and engineering services company.
This would be structured as a subscription to equity shares and warrants priced in accordance with SEBI regulations. Centrum Capital is the sole financial adviser and DSK Legal is the legal adviser to Onward Technologies for this fund raising, the company said in a statement.
Jigar Mehta, Managing Director of Onward Tech, said, “Onward Tech is already a cash positive company and the objective of raising additional cash is to strengthen our presence in India, USA and Europe. Our new international subsidiaries in the Netherlands and Canada will also become fully functional next quarter.”
“On the home front, after a successful launch in Bengaluru in January 2021, we plan to expand our portfolio of services into Hyderabad and Noida in 2021, where we see a major opportunity of growth,” he added.
Devanand Ramandasani, Chief Financial Officer at Onward Tech said, “In spite of Covid-19 and challenges of work from home, the company has shown strong resilience and hired 500 engineers across the digital and engineering services verticals to support our fast growing multinational Original Equipment Manufacturer customers. This new investment will help us accelerate both organic and inorganic growth opportunities in the digital ER&D industry”.
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