MIRC Electronics , the company behind the Onida brand, has announced a significant capital raise through a preferential share issue, while also reporting its financial results for the first quarter.

Preferential Share Issue

The company's board has approved the issuance of up to 8.89 crore equity shares at ₹16.81 per share, aiming to raise ₹149.50 crore. This move comes as part of MIRC Electronics' efforts to strengthen its financial position. The preferential allotment will be made to four investors:

Post-allotment, these investors will collectively hold approximately 24% of the company's equity. The issue is subject to shareholder approval at an upcoming Extraordinary General Meeting scheduled for September 6.

Q1 Financial Results

Alongside the capital raising announcement, MIRC Electronics reported its unaudited financial results for the quarter ended June 30:

• Revenue from Operations: ₹140.85 crore
• Total Income: ₹141.49 crore
• Net Loss: ₹12.49 crore
• Loss per Share: ₹0.54

The company faced challenges during the quarter, reporting a loss compared to a profit in the same quarter of the previous year. This performance underscores the importance of the capital infusion through the preferential issue.

Recent Fundraising Activities

The preferential issue is part of a series of fundraising initiatives by MIRC Electronics:

1. A rights issue of 4.94 crore shares at ₹10 each was completed earlier in the year.
2. The board had previously approved the issuance of Non-Convertible Debentures (NCDs) worth up to ₹60 crore.

These efforts indicate the company's focus on strengthening its financial base to navigate current market conditions and potentially fuel future growth.

Market Response

Following the announcement, MIRC Electronics' shares opened with gains of up to 5%. However, the stock closed 3.27% lower at ₹26.00 on the day of the announcement, reflecting mixed investor sentiment.

The preferential share issue and ongoing fundraising activities suggest that MIRC Electronics is taking proactive steps to bolster its financial position. As the consumer durables market continues to evolve, the company's ability to leverage this fresh capital will be crucial in determining its future performance and market position.

MIRC Electronics , known for its Onida brand of consumer durables, has reported a significant increase in net loss for the first quarter of the fiscal year, alongside announcing plans for a substantial preferential share issue to raise capital.

Financial Performance

The company's financial results for Q1 revealed a notable decline in both revenue and profitability:

MIRC Electronics reported a net loss of 12.49 crore rupees in Q1 FY2026, compared to a loss of 0.44 crore rupees in the same period last year. The company's revenue from operations fell to 140.85 crore rupees from 227.79 crore rupees year-over-year, representing a significant decline of 38.17% in top-line performance.

Operational Highlights

The company faced challenges across various expense categories:

• Cost of raw materials and components consumed decreased to 18.54 crore rupees.
• Employee benefits expense remained relatively stable at 13.73 crore rupees.
• Finance costs increased to 3.47 crore rupees.
• Other expenses decreased to 17.31 crore rupees.

Preferential Share Issue

In a strategic move to strengthen its financial position, MIRC Electronics' Board of Directors has approved the issuance of up to 8,89,49,900 equity shares with a face value of 1 rupee each on a preferential basis. The issue price is set at 16.81 rupees per share, which is in accordance with SEBI regulations.

Key details of the preferential issue include:

• Total number of shares: Up to 8,89,49,900
• Number of investors: 4
• Largest allottee: Authum Investment & Infrastructure Limited, set to receive 7,83,00,000 shares

The preferential issue is subject to shareholder approval at an upcoming Extraordinary General Meeting scheduled for September 6, 2025.

Other Corporate Actions

The company also disclosed other significant corporate actions:

1. Completion of a rights issue, allotting 4,94,89,845 equity shares at 10 rupees per share.
2. Issuance of 6,000 non-convertible debentures worth 60 crore rupees in two tranches.

Management Commentary

Kaval Mirchandani, Managing Director of MIRC Electronics, stated, "While we face challenges in the current market environment, we are taking strategic steps to strengthen our financial position and improve our operational efficiency. The proposed preferential issue will provide us with the necessary capital to navigate these challenging times and position ourselves for future growth."

MIRC Electronics continues to operate in the consumer durables segment, with its operations structured under a single operating segment as per Indian Accounting Standards.

The company's shares will be closely watched by investors as it implements these financial measures and works towards improving its performance in the coming quarters.