Shares of MIC Electronics showed minimal movement on Monday as the company revealed plans for significant fundraising through two separate proposals. The smallcap stock experienced marginal decline of nearly 1% to ₹50.86 per share on the BSE before recovering slightly.
EGM Scheduled for December 2025
The Extra Ordinary General Meeting (EGM) is set for Monday, December 1, 2025 at the company's Hyderabad office. MIC Electronics formally notified stock exchanges about the meeting where shareholders will vote on crucial fundraising initiatives that could substantially impact the company's financial trajectory.
Remote e-voting facilities will be available for eligible shareholders from November 28 to November 30, 2025. The company has established November 25, 2025 as the cut-off date for determining member eligibility. M/s. RPR & Associates' Y Ravi Prasada Reddy has been appointed as the scrutinizer to oversee the e-voting process.
Dual Fundraising Strategy
The primary proposal involves raising up to ₹250 crore through Qualified Institutions Placement (QIP) to Qualified Institutional Buyers. The company plans to execute this fundraising in one or multiple tranches, depending on market conditions and investor response.
Simultaneously, shareholders will consider approval for issuing Foreign Currency Convertible Bonds (FCCBs) worth up to $15 million on a private placement basis. This international fundraising avenue could be executed in single or multiple tranches, according to the regulatory filing submitted on November 11.
Utilization of Funds
The capital raised through these instruments will be strategically deployed across multiple business requirements. The company has identified several key areas for fund allocation including strategic acquisitions, debt reduction, working capital enhancement, investments in subsidiary companies, and other general corporate purposes.
This comprehensive fundraising approach indicates MIC Electronics' preparation for substantial business expansion and financial restructuring. The dual mechanism of domestic and international fundraising provides flexibility in capital acquisition while potentially diversifying the investor base.
Stock Performance Analysis
MIC Electronics shares have demonstrated volatile performance across different timeframes. The stock has declined 11% over the past month while showing resilience with a 13% gain in the three-month period. Year-to-date performance remains challenging with a 40% decrease in value.
However, long-term investors have been rewarded handsomely. The stock has delivered exceptional returns of 32% over two years and an astonishing 5,382% multibagger return across five years. By mid-morning trading, the stock recovered to trade 0.16% higher at ₹51.45 per share on the BSE, indicating cautious investor optimism about the fundraising plans.
The mixed performance pattern highlights the stock's characteristic volatility while maintaining its appeal as a potential long-term wealth creator for risk-tolerant investors in the smallcap segment.
