FIIs bought 1,95,65,217 shares of this multibagger penny stock at under Rs 80 via QIP & receivers LOC from Western Railway; Stock hit upper circuit & 52-week high

The stock gave multibagger returns of 235 per cent in 1 year and over 5,800 per cent in 3 years.

Today, the shares of MIC Electronics Ltd hit a 5 per cent upper circuit to Rs 78.39 per share from its previous closing of Rs 74.60. The stock also made a fresh new 52-week high is Rs 78.39 while its 52-week low is Rs 23. In the recent trading sessions, the stock has been hitting back-to-back 52-week highs.  

MIC Electronics Ltd successfully concluded its Qualified Institutional Placement (QIP) issue, which ran from June 12, 2024 to June 26, 2024. The company's Management Committee approved the allotment of 1,95,65,217 equity shares to qualified institutional buyers at a discounted price of Rs 46 per share (a premium of Rs 44 per share compared to the floor price) raising a total of Rs 89,99,99,982. Antara India Evergreen Fund Ltd., Coeus Global Opportunities Fund, and Minerva Ventures Fund were among the investors who participated in the QIP, acquiring 43,47,826 shares, 86,95,652 shares, and 65,21,739 shares respectively.

Additionally, the company has received a Letter of Completion/Installation Certificate from Ratlam Division of Western Railway Zone for completing multiple projects. These projects included: (i) replacing five-line train display boards in Indore with coal-based models, (ii) installing new CGS boards at platform 2 of NMH station, train display boards, and GPS clocks at 33 stations under the Ministry of Earth Sciences (MEA), and (iii) replacing train display boards at seven stations, at-a-glance display boards at four stations, and analogue/GPS clocks at 67 stations, all based on their coral life. It is important to note that none of the company's promoters or their group companies have any interest in the awarding entity, and the orders were awarded domestically without any related party transactions being involved. The announcement of this successful completion was made on June 25, 2024, at 5:00 PM.

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Furthermore, the company received a Letter of Acceptance from the Firozpur Division of the Northern Railway Zone to provide coach guidance display boards at major stations within their division. The total value of this work order is Rs 3,04,95,150. The specific terms and conditions will be finalized when the contract is signed. This is a domestic order, directly awarded through tenders with a nine-month timeframe for completion from the date of the acceptance letter. No promoter or affiliated companies have any stake in the Firozpur Division, and this transaction is not considered a related party transaction.  

MIC Electronics Ltd., founded in 1988, is a leading manufacturer of LED displays (indoor, outdoor, mobile), lighting solutions (indoor, outdoor, solar), telecom equipment, and software. They also produce medical equipment like oxygen concentrators and batteries. Headquartered in India, MIC exports its products globally and has a presence in the USA, Australia, UK, and other countries.

According to consolidated Quarterly Results, the net sales increased by 396 per cent to Rs 10.31 crore in Q4FY24 compared to Q4FY23. The company reported a turnaround net profit of Rs 8.80 crore in Q4FY24 compared to a net loss of Rs 0.01 crore in Q4FY23, an increase of 87,900 per cent. In its standalone annual results, the net sales increased by 826.3 per cent to Rs 54.58 crore and net profit increased by 41,967.3 per cent to Rs 61.84 crore in FY24 compared to FY23. Looking at the consolidated annual results, the company reported net sales of Rs 22.91 crore and net profit of Rs 0.26 crore in FY24.

MIC Electronics has a market cap of over Rs 1,700 crore with a 3-year stock price CAGR of 300 per cent. The stock gave multibagger returns of 235 per cent in 1 year and over 5,800 per cent in 3 years. Investors should keep an eye on this stock.

Disclaimer: The article is for informational purposes only and not investment advice.