MIC Electronics Mulls IPO For Rs 76.5Cr

Mumbai: MIC Electronics Ltd, the Hyderabad-based provider of LED (liquid electronic diode) video display systems, to float an IPO to mop up as much as Rs 76.5 crore by offering 51 lakh shares of Rs 10 each. The price band 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. Further, 15 per cent of the net issue shall be available 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 establishing a new facility in Cherlapally, Hyderabad to augment its existing production capacity of LED boards. A sum of 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 bought a 51 per cent stake in October 2006) and for oversees market development. Edelweiss Capital Ltd is the sole book running lead manager to the issue.