Black Box Limited has issued an official clarification under Regulation 30 of SEBI regulations to address and deny circulating rumors about promoter shareholding changes. The company's response comes in light of social media messages purportedly quoting reputed media channels regarding the promoters' intentions.

Official Denial of Market Rumors

The company has categorically clarified that claims about promoters intending to sell a large part of their shareholding are absolutely untrue. Black Box Limited emphasized that there is no truth whatsoever in any claims regarding changes in promoter holding of any kind. The management described these allegations as entirely baseless and without merit.

Previous Fundraising Activities

The company referenced its previously disclosed fundraising activities to provide context about actual promoter participation. In 2024, Black Box Limited conducted a Preferential Issue of Compulsorily Convertible Warrants for an aggregate amount of Rs. 386.36 Crores. Notably, the promoters actively participated in this issuance, subscribing to 51.76% of the total issue, demonstrating their continued commitment to the company.

Regulatory Compliance and Corporate Governance

Black Box Limited reaffirmed its commitment to maintaining the highest standards of corporate governance and regulatory compliance. The company stated that it has complied with and continues to comply with relevant disclosure norms under the Listing Regulations. Management assured stakeholders that they will continue to inform exchanges of any material events in a timely manner as required under applicable laws.

Stakeholder Communication

The clarification was issued by Company Secretary & Compliance Officer Aditya Goswami on behalf of the company and its promoters. The communication aims to ensure that shareholders and exchanges remain accurately informed about the company's actual position regarding promoter shareholding. The company has made this information available on its official website at www.blackbox.com for broader stakeholder access.

Black Box Limited has filed its monitoring agency report for the quarter ended December 31, 2025, detailing the utilization of proceeds from its preferential issue of convertible warrants. The report, prepared by CARE Ratings Limited as the monitoring agency, provides insights into the company's fund deployment and compliance with regulatory requirements.

Issue Overview and Revisions

The company's preferential issue underwent significant modifications from its original structure. Initially planned for Rs. 410.00 crore, the issue size was reduced to Rs. 386.36 crore due to undersubscription. The company allotted 92,65,215 fully convertible warrants at an issue price of Rs. 417 each, compared to the originally proposed 98,32,123 warrants.

The company revised its issue objects through a special resolution passed via postal ballot on March 19, 2025. The revision added "Working Capital requirements of the Company" as a new object, while adjusting allocations for existing objects.

Object-wise Fund Allocation

The revised fund allocation reflects the company's strategic priorities and reduced issue size:

Fund Utilization During Q3 FY26

During the quarter ended December 31, 2025, the company utilized Rs. 2.08 crore specifically for working capital requirements, primarily for employee salary payments. This utilization was in line with the revised objects approved by shareholders.

Deployment of Unutilized Proceeds

The company has deployed its unutilized proceeds of Rs. 22.24 crore in fixed deposits with Bank of Maharashtra and maintains a monitoring account with HDFC Bank. The fixed deposits carry interest rates ranging from 3.75% to 4.50%, with varying maturity dates in early 2026.

Monitoring Agency Assessment

CARE Ratings Limited, serving as the monitoring agency, reported no major deviations from earlier monitoring reports. The agency confirmed that the company obtained necessary shareholder approvals for object revisions and that fund utilization during the quarter aligned with the revised objects.

The monitoring agency noted that while the company routed funds through its current account, which also recorded other business transactions, proper verification was conducted through bank statements, management certificates, email confirmations, and chartered accountant certificates.

Compliance and Timeline Status

The report indicates that the company remains compliant with regulatory requirements regarding fund utilization. The warrants have an 18-month conversion period from the date of allotment, and the company continues to utilize funds within the prescribed timelines for each tranche received.

The monitoring agency confirmed no delays in implementation of objects and noted that all fund utilization has been in accordance with the revised objects approved by shareholders through the special resolution.