MIC Electronics IPO hits market

Hyderabad, Apr 30 (UNI) To fund its expansion plans, MIC Electronics Limited, a leading manufacturer of LED video display systems, today entered the capital market with an Initial Public Offer (IPO) of 51 lakh equity shares of Rs 10 each.

Addressing a press conference here, MIC Electronics Managing Director M V Ramana Rao said the IPO proceeds would be used for setting up additional facilities for manufacturing LED (Light Emitting Diodes) video modules and funding the acquisition of the US-based Infostep Inc.

"MIC has a presence in the LED display market internationally, with a customer base including advertising agencies, LED rental companies, BSNL and MTNL," Mr Rao said.

The company had recently secured an order of Rs 104.9 crore from the BSNL.The current LED display market size stood around 3.55 billion US Dollar which was expected to touch 3.9 billion USD by 2007.

The LED market had registered a growth rate of CAGR of 15.98 per cent from FY 2004 to FY 2007. LED video wall sales grew by eight per cent for FY 2005 and recorded 11 per cent growth in FY 2006.

The price band for the IPO closing on May eight had been fixed at between Rs 129 and Rs 150 per equity share.

UNI