MIC Electronics allotted 5,68,73,418 equity shares on a preferential basis to complete its acquisition of a 59% stake in Neo Semi Sg Pte. Ltd., raising its paid-up capital to ₹59.58 crore.

Share allotment and acquisition details

The Board of Directors approved the allotment on September 04, 2026, pursuant to shareholder approval granted at the Extraordinary General Meeting held on April 29, 2026. The shares were issued as non-cash consideration to discharge the payable amount for the stake transfer from Ebisu Global Opportunities Fund Limited, Unico Global Opportunities Fund Limited, and Tavas Advisory & Consulting (FZE).

The following table summarises the key details of the transaction:

Impact on paid-up capital

The allotment has increased MIC Electronics' issued, subscribed, and paid-up capital. Before the transaction, the company had 24,10,11,560 shares with a value of ₹48.20 crore. Post-allotment, the total stands at 29,78,84,978 shares valued at ₹59.58 crore.

The newly allotted equity shares rank pari passu with the existing equity shares of the company.

MIC Electronics has received in-principle approval from both the BSE and NSE for a preferential issue of equity shares to fund its acquisition of Singapore-based Neo Semi Sg Pte Ltd. The move signals progress in the company’s strategic expansion through a share swap mechanism.

The company disclosed on August 26, 2026, that it secured the necessary regulatory clearances to issue 5,68,73,418 equity shares with a face value of Re. 2/- each. The issuance is priced at not less than ₹41.38 per share and will be allotted to non-promoters as part of the transaction.

Deal Structure and Timeline

The preferential allotment is being executed under Regulation 28(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The approvals were granted by:

• BSE Limited, vide letter no. LOD/PREF/MV/FIP/704/2026-27 dated August 25, 2026
• National Stock Exchange of India Limited, vide letter no. NSE/LIST/54442 dated August 25, 2026

MIC Electronics stated that it will complete the allotment within 15 days. This timeline is subject to the receipt of Neo Semi shares from the proposed allottees via share transfers and the completion of other procedural compliances.

What the Numbers Show

The transaction structure relies entirely on a share swap rather than cash consideration for the acquirer. By issuing nearly 5.69 crore new shares at a floor price of ₹41.38, MIC Electronics is diluting existing equity to acquire the target entity. The total potential value of the issuance, based on the minimum price, stands at approximately ₹23.53 crore (5.68 crore shares * ₹41.38), representing the valuation ceiling for this specific leg of the acquisition mechanism.