MIC Electronics files DRHP with Sebi

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MIC Electronics, engaged in Design and Manufacture of True Color LED Video Display Systems, has filed its draft red herring prospectus, DRHP with the Securities and Exchange Board of India, Sebi on November 22, 2006, to enter the capital market with its public offering of equity shares, as per press release.

The company proposes to issue 51,00,000 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 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, QIBs of which 5% of the issue will be available for allocation to mutual funds. 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.

The objective of the issue includes setting up additional manufacturing facilities, acquisition of Infostep Inc., in USA among others.

The company has three divisions-Media, Info-Tech, Communications and Electronics and is engaged in design, development and production of True Color LED video Display Systems, telecom software solutions and communication equipment like Digital Loop Carrier on optical fibre including voice, video and date applications, Hand Held Computers.

Total income of the company for FY 2006 was Rs 1044.12 million and net profit after tax was Rs 154.76 million. The networth stood at Rs 494 million.

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