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Thursday, April 26, 2007

MIC Electronics sets IPO price band at Rs 129-150

MIC Electronics, the Hyderabad-based ISO 9000:2000 certified company, engaged in the design and manufacture of True Colour LED video display systems, is entering the capital market with an initial public offer (IPO) of 5,100,000 equity shares of Rs 10 for cash at a price to be decided through the 100% book-building process for listing on both Bombay Stock Exchange and National Stock Exchange.

The price band for the offer has been fixed between Rs 129 and Rs 150 per equity share for IPO opening on April 30, 2007, and closing on May 8, 2007. The public offer constitutes 25.34% of the company’s fully diluted post issue paid up equity capital.

Upto 50% of the issue will be allocated on a proportionate basis to the qualified institutional buyers, of which 5% of the issue will be available for allocation to mutual funds. Further, 15% of the issue will be available for non-institutional bidders and 35% of the issue will be available for allocation on a proportionate basis to the retail individual bidders.

M V Ramana Rao, MD, MIC Electronics, said, “The objects of the issue includes setting up additional facilities for manufacturing LED (Light Emitting Diodes) video modules and acquisition of Infostep Inc., in USA.” He added, “MIC has a presence in the LED display market internationally, with a customer base including the advertising agencies, LED rental companies, telecom equipment spenders BSNL and MTNL. MIC is now further strengthening its footprint internationally.” The Company has recently secured an order of Rs 1049 million from BSNL.

MIC Electronics has three divisions — Media, Info-Tech, Communications and Electronics. It is engaged in the design, development and production of True Colour LED video Display Systems, telecom software solutions and communication equipment such as Digital Loop Carrier on optical fibre including voice, video/data applications, and Hand Held Computers. MIC is the only Company in India to have the “Design-to-Manufacture” capability for the manufacture of LED Video Display Systems.

The unconsolidated total income, of the company for the 6 months ended December 31, 2006, was Rs 654.56 million and net profit after tax was Rs 108.91 million. During the year ended June 30, 2006, the total income posted was Rs 1,044.12 million while the net profit after tax was Rs 154.76 million. MIC has a confirmed order book of worth Rs 1678.55 million as on December 31, 2006.

The sole book running lead manager to the issue is Edelweiss Capital.

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