MIC Electronics Limited (MIC) has taken a significant step forward in its expansion plans by executing a preliminary Memorandum of Understanding (MOU) with NEO SEMI SG PTE LIMITED (NSPL), a Singapore-based company. This development marks a crucial milestone in MIC's proposed acquisition of NSPL.

Key Highlights

• MIC Electronics signed the preliminary MOU on July 28, 2025.
• The agreement follows an earlier announcement made on July 25, 2025, regarding the acquisition proposal.
• The MOU is with NEO SEMI SG PTE LIMITED, a company based in Singapore.

Official Confirmation

In an official communication to the BSE Limited and the National Stock Exchange of India Limited on July 29, 2025, MIC Electronics' Company Secretary and Compliance Officer, Lakshmi Sowjanya Alla, confirmed the execution of the MOU. The statement reads:

"In continuation to our earlier announcement dated July 25, 2025, we wish to inform you that the Company has executed the preliminary Memorandum of Understanding (MOU) on July 28, 2025 with M/s. NEO SEMI SG PTE LIMITED (NSPL), Singapore, for the acquisition proposal of NSPL by the Company."

Implications and Next Steps

While the execution of the MOU is a crucial initial step, it's important to note that this is still a preliminary agreement. The final acquisition is subject to further negotiations, due diligence, and necessary approvals. Stakeholders and investors will likely be watching closely for further developments in this potential cross-border acquisition.

MIC Electronics Limited, an ISO 9001:2008 and ISO 14001:2004 certified company, is headquartered in Hyderabad, Telangana. As this acquisition move suggests, the company appears to be exploring strategic growth opportunities beyond its current operations.

The market will be keenly observing how this potential acquisition aligns with MIC Electronics' long-term strategy and what synergies it might bring to the table. Further details about the financial terms of the deal and its potential impact on MIC Electronics' business operations are yet to be disclosed.

Investors and stakeholders are advised to stay tuned for more updates as the acquisition process progresses.

MIC Electronics Limited , an Indian technology company, has taken a significant step towards diversifying its portfolio and entering high-tech sectors. The company's Board of Directors has granted in-principle approval to explore the acquisition of equity shares in Neo Semi SG Pte. Ltd. (NSPL), a Singapore-based firm specializing in semiconductor technology, IoT solutions, and electronics refurbishment.

Strategic Move into Next-Generation Technologies

The proposed acquisition aims to position MIC Electronics in future-critical verticals, including semiconductors, green energy, and digital service infrastructure. This strategic move aligns with the company's long-term vision to expand its presence in innovative and high-growth sectors.

NSPL's Unique Ecosystem

Neo Semi SG Pte. Ltd. has established a robust ecosystem through strategic partnerships:

1. A Silicon Valley-based semiconductor chip design company, focusing on cutting-edge solutions for high-performance computing, AI, and IoT applications.
2. An energy management firm offering IoT-based solutions for climate resilience, energy efficiency, and smart grid modernization.
3. India's largest electronics refurbishment and reverse logistics company, with plans to enter the e-waste management space.

Potential Synergies and Value Creation

The acquisition, if completed, is expected to create significant synergies between MIC Electronics and NSPL. These synergies could potentially unlock value creation opportunities in both domestic and international markets, leveraging the combined strengths of both companies.

Transaction Details and Due Diligence

The Board has authorized the Managing Director to initiate the following steps:

• Appoint intermediaries for valuation and due diligence processes
• Negotiate the acquisition terms
• Explore various transaction structures, including equity purchase, share swap, or hybrid instruments

It's important to note that the current Memorandum of Understanding between MIC Electronics and NSPL is preliminary and non-binding. The transaction remains subject to:

• Independent valuation by SEBI-registered valuers
• Comprehensive due diligence
• Finalization of the transaction structure
• Necessary approvals from regulatory authorities

Cautionary Statement

While this move signals MIC Electronics' ambition to expand into high-tech sectors, the company emphasizes that the acquisition is still in the exploratory phase. The final decision will be made after concluding negotiations, determining share valuation, and completing due diligence.

Investors and stakeholders should note that this development, while promising, is still subject to various conditions and approvals. The outcome of the proposed acquisition and its potential impact on MIC Electronics' future performance remain to be seen as the process unfolds.