AGC Networks Limited raises Rs.225 Crores through issue of Convertible Warrants to Promoters and Promoter Group at a Price of Rs.675 per Warrant

AGC Networks Limited (AGC), a Global Solutions Integrator has announced that, the Company has issued 33,33,334 Convertible Warrants each convertible into Equity share of face value Rs. I 0, to the promoters and promoter group of the company at a price of Rs.675 per Warrant, aggregating to Rs.225 Crores. The issuance price was determined at 8% premium to the floor price ofRs.625 per Warrant as per SEBI ICDR regulations, upon conversion of Warrants.

Promoters and Promoter group have paid the initial subscription amount, as per the terms of the issue, ofRs.56.25 Crores and an additional amount of Rs.17.13 Crores, which will be adjusted against balance premium for Warrants issued. As on 301h September 2020, Promoters and Promoter group holding in the company stood at 68.94% and this would increase to 72.05% upon conversion of all Warrants.

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

Commenting on the fund raise from Promoters, Mr. Sanjeev Verma, Whole-time Director & CEO, AGC Networks said, "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.

With strong cashflows, the Company has embarked on a new trajectory to make new offerings and strengthen the business model and customer value delivery."

Shares of AGC Networks Limited was last trading in BSE at Rs.755 as compared to the previous close of Rs. 753.2. The total number of shares traded during the day was 541 in over 43 trades.

The stock hit an intraday high of Rs. 769.95 and intraday low of 716.3. The net turnover during the day was Rs. 402586.

Source : Equity Bulls

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