MIC Electronics slumps as board to re-examine further issue of shares on preferential basis

MIC Electronics lost 14.02% to Rs 23.30 at 10:27 IST on BSE after the company asked its Managing Director to come up with a specific proposal or alternatively with some other options for further issue of shares on preferential basis.

Meanwhile, the BSE Sensex was down 227.43 points, or 0.91%, to 24,706.90

On BSE, so far 7.68 lakh shares were traded in the counter, compared with an average volume of 2.90 lakh shares in the past one quarter. The stock hit a high of Rs 25.50 and a low of Rs 22.60 so far during the day. The stock hit a 52-week high of Rs 29.50 on 10 July 2015. The stock hit a 52-week low of Rs 7.40 on 27 March 2015. The stock had outperformed the market over the past one month till 8 January 2016, rising 23.74% compared with 1.49% fall in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 31.87% as against Sensex's 7.12% decline.

 

The small-cap company has an equity capital of Rs 31.48 crore. Face value per share is Rs 2.

MIC Electronics announced on Saturday, 9 January 2016 that the board of directors of the company at its meeting held on 9 January 2016, has approved the issue of conversion of debt/liability into equity shares and further issue of equity shares on preferential basis has been discussed by the board in detail. After examining all aspects involved the board felt that the subject matter merits re-examination specially keeping in view of the interests of all the stakeholders involved. Accordingly the Managing Director, M V Ramana Rao is requested to come up with a specific proposal or alternatively with some other options at appropriate time for consideration by the board, MIC Electronics said.

On a consolidated basis, MIC Electronics reported net profit of Rs 2.21 crore in Q3 December 2015 as against net loss of Rs 3.80 crore in Q3 December 2014. Net sales rose 33.7% to Rs 53.75 crore in Q3 December 2015 over Q3 December 2014. The result was announced on Saturday, 9 January 2016.

MIC Electronics is a global leader in the design, development & manufacturing of LED video displays, high-end electronic and telecommunication equipment and development of telecom software.

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