Mirc Electronics raises Rs 144 cr from pvt investors for expansion

Mirc Electronics, which makes Onida brand of consumer durables, said nine private investors will put in Rs 144.12 cr in the form of equity investments into the company.

The company will issue 1.92 crore equity shares and 1.92 crore convertible warrants at Rs 37.53 to these investors.

Shares of Mirc Electronics were trading at Rs 52 on the National Stock Exchange.

The pricing of the shares is at a steep discount to current market price, but are nevertheless much higher than the levels of around Rs 15 that the stock was trading at in September. The price is based on SEBI norms, the company said.

“This reiterates the faith of the investors’ in the growth prospects of the company. This infusion of equity into the company at this juncture would definitely strengthen our position and improve our aggression in the market,” said Vijay Mansukani, MD.

Every warrant is entitled to receive 1 equity share at the time of conversion within a period of 18 months from the date of issue of warrants.

The move will help it augment its long term working capital and corporate requirements, Micr electronics, which used to be a major player in the TV market 20 years ago, said.

Onida lost much of its market share with the entry of Samsung and LG, Korea-based players who took the Indian market by storm in the late 1990s and early 2000s.

After being relegated to the margins, the brand is trying to make a comeback by focusing on LCD TVs. There are, for example, 44 listings for ‘Onida’ branded TVs on Amazon.

It is also focused on air conditioners and washing machines and has two factories, at at Wada near Mumbai and another in Roorkee near Delhi.

A shareholder meeting will be held on December 27, 2017 at 3:00 p.m. for getting the shareholders approval for the investment.

Mirc Electronics Ltd was started by GL Mirchandani and Vijay Mansukhani in 1981 in Mumbai.