MIC Electronics starts trading at 121 per cent premium to IPO price

30 May 2007

Mumbai: Shares of the Hyderabad-based MIC Electronics listed on May 30 with significant gains on both BSE and the NSE. MIC Electronics was at 121 per cent premium to the initial offer price on BSE and a 120 per cent premium on the NSE.

The stock was trading at Rs332 on the Bombay Stock Exchange, after opening at Rs210, also the low so far. It had touched a high of Rs349 earlier. The number of shares traded so far was 35.38 lakh.

On the National Stock Exchange, the stock listed at Rs262.50 and shot up to Rs330.10, up Rs180 from the issue price. It hit a high of Rs367 and a low of Rs253.

The company''s initial public offer of 15 lakh shares was subscribed over 50 times, supported mostly by foreign institutional investors and domestic mutual funds.

MIC Electronics is engaged in the design and manufacture of True Colour LED video display systems, and plans to use the IPO proceeds mainly for setting up additional facility for LED video modules at Cherlapally in Hyderabad and Roorkee.

Part of the funds will be used for acquisition of US-based company, InfoSTEP.

Based in Andhra Pradesh, MIC Electronics started operations in 1988. Initially it started with design and development of telecom products and in mid 90s it ventured into telecom software and IT services. Later, in 2000, it commenced manufacture of LED.