AGC Networks raises Rs 225 crore via issuance of warrants to promoters

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

"The company has issued 33,33,334 convertible warrants each convertible into equity share of face value Rs 10, to the promoters and promoter group of the company at a price of Rs 675 per warrant, aggregating to Rs 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.

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

"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.