Shares of a multibagger smallcap stocks rose on Monday after the company said its board had granted in-principle approval to explore the acquisition of a Singapore-based firm.
In a stock exchange filing dated July 25, MIC Electronics said its Board of Directors has given in-principle approval to examine the acquisition of equity shares in Neo Semi SG Pte. Ltd. (NSPL), an innovation-led company based in Singapore.
The proposed acquisition will be carried out through the purchase of existing equity share capital from current shareholders of NSPL, subject to compliance with the Companies Act, 2013 and the Overseas Investment Regulations issued by the Reserve Bank of India, the filing stated.
"The Board will take a final decision on the acquisition after completing negotiations, per share valuation, due diligence of NSPL, and determination of further terms and conditions," the company said.
The move is part of the company's strategy to expand into next-generation technologies and allied high-growth segments.
The company is engaged in LED display systems, railway electronics, and telecom software, with a product portfolio that includes LED video displays and other high-end electronic equipment.
Shares of the company were trading 2.23 percent higher at Rs 53.07 apiece on the NSE in early trade on Monday at around 9:45 a.m.
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