Mirc Electronics jumps on board's nod for rights issue

Mirc Electronics was locked at 5% upper circuit at Rs 5.39 at 10:54 IST on BSE after the company said its board at a meeting held on Wednesday approved raising of funds upto Rs 33 crore by rights issue of equity shares to the existing shareholders.

The announcement was made after market hours on Wednesday, 4 December 2013.

Meanwhile, the S&P BSE Sensex was up 371.59 points or 1.79% at 21,080.30.

On BSE, 2,220 shares were traded in the counter as against average daily volume of 29,412 shares in the past one quarter.

The stock hit a low of Rs 5.30 so far during the day.

The stock had underperformed the market over the past one month till 4 December 2013, declining 14.48% compared with the Sensex's 2.5% fall. The scrip had also underperformed the market in the past one quarter, advancing 4.47% as against Sensex's 11.53% surge.

Mirc Electronics said that the terms of the rights issue viz. issue price, issue size, record date, timing of the issue and other matters shall be decided by the Committee constituted for the said purpose. The company will convene an Extra-ordinary general meeting on 20 January 2014 for obtaining the approval of the shareholders for the rights issue.

Mirc Electronics reported a net loss of Rs 22.79 crore in Q2 September 2013, higher than net loss of Rs 7.81 crore in Q2 September 2012. Net sales rose 1.9% to Rs 294.69 crore in Q2 September 2013 over Q2 September 2012.

Mirc Electronics makes electronic products such as television sets, LCD TVs, LED TVs, washing machines, air conditioners, DVDs and Microwave Ovens under the Onida brand. The company also makes mobiles phones under the Onida brand.

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