MIRC Electronics Limited , the company behind the Onida brand, has secured strong shareholder support for its plan to issue equity shares on a preferential basis. The decision came during an Extra-Ordinary General Meeting (EGM) held on September 6, conducted via video conferencing.

Voting Results

The special resolution for the preferential equity share issue received near-unanimous approval, with an impressive 99.99% of valid votes cast in favor. The voting process, which included both remote e-voting from September 3-5 and e-voting during the meeting, saw participation from 196 members.

According to the scrutinizer's report, prepared by Practicing Company Secretary Mahesh M. Darji:

Shareholder Participation

The EGM, which took place at 3:00 PM on the scheduled date, allowed shareholders to participate through video conferencing, adhering to the guidelines set by the Ministry of Corporate Affairs (MCA) and the Securities and Exchange Board of India (SEBI).

Scrutinizer's Confirmation

Mr. Mahesh M. Darji, appointed as the scrutinizer for the voting process, confirmed that the resolution secured the requisite majority. In his report, Darji stated, "The resolution having secured requisite majority of votes, may be considered to have been passed."

Management's Response

Kaval Mirchandani, Managing Director of MIRC Electronics Limited, signed off on the scrutinizer's report, indicating the management's acknowledgment of the voting results and the shareholders' decision.

Implications

The overwhelming support for the preferential equity share issue suggests strong shareholder confidence in the company's future plans. This decision could potentially provide MIRC Electronics with additional capital for expansion, debt reduction, or other strategic initiatives.

While the specific details of the preferential issue were not disclosed in the available information, such moves are typically aimed at strengthening the company's financial position or funding growth opportunities.

As MIRC Electronics moves forward with this shareholder-approved initiative, investors and market watchers will likely keep a close eye on how the company utilizes the proceeds from the preferential share issue and its impact on the company's future performance.

The company has duly informed the BSE Limited and the National Stock Exchange of India Limited about the EGM results, maintaining transparency with the market regulators and stakeholders.

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.