MIC IPO coming up soon

Kishore Kumar

HYDERABAD: MIC Electronics Limited, which is planning to come up with an Initial Public Offering (IPO), would soon conduct road shows in Hyderabad, Mumbai, Ahmedabad, Kolkata and Bangalore.

The manufacturers of light emitting diode (LED) display systems, which also produces telecommunication equipment and software, intends to utilize the proceeds for infrastructure development, research and development.

A portion of the fund raised would be used to acquire the remaining stake in US-based company InfoSTEP, Inc.

MIC will issue 5,100,100 equity shares of Rs 10 each for cash at a price to be decided through 100 per cent book building process.

Though officials of the company declined to reveal the amount being planned to raise, sources close to the development confirmed that the issue would be opened very soon. A clear picture would emerge by mid-January, said the source.

The company would get its shares listed both on the Bombay Stock Exchange and National Exchange. A Draft Redherring Prospectus has already been filed by MIC.

The company would use Rs 91.08 crore to complete its acquisition of InfoSTEP Inc. It has already completed the share swap for the value of Rs 2.2 million.

MIC also plans to utilize the fund to set up facilities at Hyderabad and Roorkee. The company has approach the government for land at the Hardware Park in Hyderabad. It would set up assembly and testing for video modules at the Hardware Park.

In the financial year 2006 MIC had a net profit of Rs 154.76 million with a turnover of Rs 843.19 million. Besides India, MIC has got offices in Australia, Dubai and USA.

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