News Article from Business Line, Mumbai Dated 25th April 2007
MIC Electronics Limited, - the Hyderabad-based provider of LED (Light Emitting Diode) Video
Display Systems, is coming out with an IPO to raise as much as Rs.76.5 crore by offering 51 lakh
shares of Rs.10 each. The price brand has been fixed at Rs.129-150 per share.
A major portion of the issue proceeds will be used to fund setting up an additional facility for
manufacture of LED video modules and for maintaining sufficient stocks of LED Display systems.
At least 50 per cent of the net issue to the public shall be allotted on a proportionate basis to
qualified institutional buyers. Further 15 per cent of the net issue shall be for allocation on
a proportionate basis to non-institutional bidders, while 35 per cent of the net issue to the public
shall be available for allocation on a proportionate basis to retail bidders.
The issue will constitute 25.34 per cent of the fully diluted post-issue equity share capital of the company.
Edelweiss Capital Ltd will manage the sale.
The company is setting up a new facility in Cherlapally, Hyderabad to augment its existing production
capacity of LED boards.
"We will be investing about Rs.14.9 crore in this facility that will enable us to cater to
the growing demand for LED Displays both in India as well as globally,", Dr.M.V.Ramana RaoManaging Director & CEO, said.
A sum about Rs.15 crore has been earmarked to maintain a sufficient stock of LED Video Displays
for its rental / leasing business.
About Rs.21 crore of the IPO proceeds will be invested in Design and Development of 3D Stereoscopic
displays, completing the acquisition of InfoSTEP Inc, US ( the company has acquired a 51 per cent
stake in October 2006 ) and for overseas market development.
Edelweiss Capital Ltd is the sole book running lead manager to the issue.
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