CREATIVE NEWTECH LIMITED — Capital/Financing Update 2023

Jun 19, 2023

Creative Newtech Limited

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(Formerly known as Creative Peripherals and Distribution Limited) CIN - L52392MH2004PLC148754

Date: June 19, 2023

To, The Listing Compliance Department National Stock Exchange of India Limited, Exchange Plaza, Bandra Kurla Complex, Bandra (East), Mumbai - 400051

SYMBOL: CREATIVE

Dear Sir,

Sub: Preferential Issue of Equity Shares and Warrants

We are pleased to enclose a copy of media release regarding the Company’s plan to issue Equity Shares and Fully Convertible Warrants on a Preferential Basis to the promoter group, non-promoter group and KMPs/ Employees of the Company.

Kindly take the same on record.

Thanking you,

For Creative Newtech Limited

(Formerly known as Creative Peripherals and Distribution Limited)

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Digitally signed by TEJAS NIRANJANBHAI
DOSHI
TEJAS DN: c=IN, o=PERSONAL, title=7704,
pseudonym=2fce03b0664c41e4b41d511b3
eb29f26,
2.5.4.20=f171fb20112289ebe83cd73134ca24
NIRANJANB 26c53ca3c7d9e4d7ea4f19b468a40f0286,
postalCode=401101, st=Maharashtra,
serialNumber=ce415067c4d1da3010f3c89b3
9aa43a941e0d91cf2a7a4c4981e1ff391dcb93
HAI DOSHI 3, cn=TEJAS NIRANJANBHAI DOSHI
Date: 2023.06.19 15:00:18 +05'30'
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Tejas Doshi Chief Compliance Officer and Company Secretary ACS – 30828

19[th] June 2023, Mumbai

Registered Office: 3[rd] & 4[th] floor, Plot No. 137AB, Kandivali Co-op Industrial Estate Limited, Charkop, Kandivali West, Mumbai 400067 Contact No.: +91 22 50612700 | Email: cs@creativenewtech.com | Website: www.ecreativeindia.com

Creative Newtech Limited

(Formerly known as Creative Peripherals and Distribution Limited) CIN - L52392MH2004PLC148754

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Business Update Release

Creative to raise funds through preferential issue of equity shares and convertible warrants

Company to raise Rs. 80.10 Cr through members of promoter group, non-promoter group and select employees to fund expansion initiatives

Mumbai, 19[th] June 2023: Creative Newtech Limited (NSE: CREATIVE) market specialists for experiential products in IT, Gaming, Imaging and Lifestyle domains with a pan-India presence, is pleased to announce its plans to raise funds through a preferential allotment of equity shares and warrants.

The Company will be raising Rs. 80.10 Cr of funds through this issue, which comprises of 14,49,500 equity shares and 9,10,500 fully convertible (within 18 months) warrants, at an issue price of Rs. 450/-.

Out of the 14,49,500 equity shares, 5,80,000 equity shares would be issued under a Share Swap agreement to Sapri Trading DWC LLC.

Considering this issue, the authorized share capital of the Company also would be increased to Rs. 20 Cr divided into 2 crore shares of face value Rs. 10 each.

The proceeds raised through this would be utilized to fund growth and expansion initiatives by the Company as it grows its distribution as well as brand licensing business across the APAC and GCC regions.

Management Comment:

Commenting on this development, Mr. Ketan Patel, Chairman & Managing Director of Creative Newtech Limited said:

“We are pleased to announce our plans to raise funds by means of allotment of equity shares and convertible warrants on a preferential basis in Creative Newtech to the promoter, nonpromoter group, as well as some employees & KMPs of the Company. This highlights the confidence and commitment of the investors and employees towards the growth prospects of the Company.

We will raise Rs. 80.10 cr through this preferential issue, and these proceeds will be utilized to fund growth and expansion of the Company’s business including distribution as well as brand licensing activities across the APAC and GCC regions.

Registered Office: 3[rd] & 4[th] floor, Plot No. 137AB, Kandivali Co-op Industrial Estate Limited, Charkop, Kandivali West, Mumbai 400067 Contact No.: +91 22 50612700 | Email: cs@creativenewtech.com | Website: www.ecreativeindia.com

Creative Newtech Limited

(Formerly known as Creative Peripherals and Distribution Limited) CIN - L52392MH2004PLC148754

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The share swap transaction with Sapri Trading DWC LLC will further help Company to consolidate its shareholding in Secure Connection Ltd (HK) from 52.5% to 69.5% which is the fastest growing and highly profitable business.

This move will accelerate the growth prospects for the Company and inspires confidence in us to take the business to new heights. I would like to thank all our employees, new investors and existing stakeholders for their continued support in our endeavours.”

Company Overview

Established in 1992, Creative Newtech Limited (Formerly known as Creative Peripherals and Distribution Limited) is a well-established company in India’s Information and Communication Technology market. Through a robust network of partners and distribution channels, the Company has made a strong foothold in the IT distribution market in the country. The Company has an omni-channel network across all three channels of online, offline and retail trade.

Creative specializes in market entry and penetration for global brands. The Company offers demographic intelligence, and enables the formulation and execution of marketing strategies for its clients. In addition to such services, Creative continues to focus on timely delivery, diversification of its product portfolio, sustained long-term relationships with its channel partners, and extending value-added services over and above distribution.

These efforts have enabled the Company to win long running contracts as well as garner accolades in the industry as amongst the best distributors in India by leading brands. Creative is associated with over 20 renowned brands globally. These brands encompass a wide range of applications and help the Company to cater to a broad array of customers, both in the consumer and industrial businesses. Moreover, the Company is wellpositioned to leverage the changing trends in the technology industry and be a part of the paradigm shift towards digitization in India.

Creative Newtech has a unique value-added business model. They provide end-to-end solutions, from market research and competition analysis for brands, to import, distribution, sales and servicing for the brand. Additionally, the Company suggests and executes marketing strategies and recommends viability in specific regions across India for their clients. This is enabled by specialized skill sets, local insights and experience, along with relevant market intelligence. Creative also prepares strategic plans for market entry for foreign brands and their target category.

Furthermore, the Company conducts pre-sales and marketing activities for the success of the brand as well as to enable the channel partners to leverage their expertise and bottom line. Creative works closely with partners across channels including Large Format Retail (LFR), e-commerce and specialized retailers. Creative is one of the few large companies

Registered Office: 3[rd] & 4[th] floor, Plot No. 137AB, Kandivali Co-op Industrial Estate Limited, Charkop, Kandivali West, Mumbai 400067 Contact No.: +91 22 50612700 | Email: cs@creativenewtech.com | Website: www.ecreativeindia.com

Creative Newtech Limited

(Formerly known as Creative Peripherals and Distribution Limited) CIN - L52392MH2004PLC148754

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who conduct specialized training modules, events and promotional activities at the ground level with channel partners. They also conduct workshops and demos for resellers. This is possible due to the dedication and experience of the corporate and sales teams which constantly track latest market developments to build a closer market connect.

The Company’s wide reach and superior logistics capabilities helps it provide end-to-end services including warranty and post-warranty, high-level repair services, and response centers, among others. Such expertise and superior quality of service has led to increased confidence of brands, many of which have chosen Creative as exclusive partners and have been with the Company since over five years. The Company focuses on higher operational efficiencies and adding higher-margin and value-added products to its existing product portfolio and such brand associations are a concrete step in that direction.

For more details please visit: www.creativenewtech.com For further information please contact:

Creative Newtech Limited Mr. Tejas Doshi Chief Compliance Officer & Company Secretary cs@creativenewtech.com Mr. Abhijit Kanvinde Chief Financial Officer abhijit@creativenewtech.com	AdFactors PR Investor Relations Ms. Savli Mangle savli.mangle@adfactorspr.com Mr. Rahul Trivedi rahul.trivedi@adfactorspr.com

Note: Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward-looking statements. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other risk factors, viewers are cautioned not to place undue reliance on these forward-looking statements. The Company will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forwardlooking statements to reflect subsequent events or circumstances.

Registered Office: 3[rd] & 4[th] Contact No.: +91 22 50612700 |

Email: cs@creativenewtech.com | Website: www.ecreativeindia.com