Mirc Electronics Ltd, the consumer electronics company known for its Onida brand, has announced that its Board of Directors will convene on August 13, 2025, to consider a proposal for raising funds through the issuance of securities. This move comes on the heels of a recently concluded rights issue and reflects the company’s ongoing efforts to strengthen its capital base and support operational turnaround initiatives.
The upcoming board meeting will evaluate various fundraising instruments, including equity shares, convertible securities, or other permissible modes under applicable regulatory frameworks. The decision is expected to play a pivotal role in Mirc’s financial restructuring and growth strategy, especially as the company seeks to recover from recent losses and reposition itself in the competitive consumer electronics market.
Key Highlights from the Fundraising Proposal
- Mirc Electronics Ltd will hold a board meeting on August 13, 2025, to consider a fresh round of fundraising
- The proposal may include equity shares, convertible instruments, or other securities
- The move follows a successful rights issue in July 2025, which raised Rs 49.49 crore
- Funds are expected to be used for working capital, product innovation, and brand revitalization
Background and Strategic Context
1. Recent Rights Issue
- Mirc Electronics completed a rights issue from July 14 to July 21, 2025, offering 4.94 crore shares at Rs 10 each
- The issue was oversubscribed by 2.02 times, indicating strong investor interest despite past losses
- Proceeds were earmarked for working capital and general corporate purposes
2. Financial Performance
- The company reported a net loss of Rs 6.22 crore for FY24, widening from Rs 1.25 crore in FY23
- Revenue declined to Rs 97.45 crore in FY24 from Rs 111.27 crore in the previous year
- The fundraising aims to address liquidity constraints and support margin recovery
3. Product and Market Strategy
- Mirc is focusing on smart TVs, air conditioners, and kitchen appliances under the Onida and IGO brands
- Plans include expanding e-commerce presence and launching new models with energy-efficient features
- The company is also exploring partnerships for technology upgrades and supply chain optimization
Potential Instruments and Regulatory Framework
The board will consider multiple fundraising options:
- Equity Shares
- Direct issuance to institutional investors or via qualified institutional placement (QIP)
- Potential dilution of existing shareholding depending on structure
- Convertible Securities
- Instruments such as warrants or debentures convertible into equity
- May offer flexibility in pricing and investor participation
- Regulatory Compliance
- Any fundraising will be subject to SEBI’s Issue of Capital and Disclosure Requirements Regulations
- Shareholder approval and stock exchange filings will follow board approval
Market Sentiment and Investor Outlook
The announcement has generated cautious optimism among investors:
- Shares of Mirc Electronics traded flat post-announcement, reflecting wait-and-watch sentiment
- Analysts believe successful fundraising could improve the company’s debt-equity ratio and support turnaround efforts
- Investor confidence hinges on execution of product strategy and cost control measures
Conclusion
Mirc Electronics Ltd’s decision to consider a fresh round of fundraising via securities on August 13 signals its intent to accelerate recovery and reposition itself in the consumer electronics space. With a legacy brand like Onida and a renewed focus on innovation, the company is aiming to rebuild investor trust and operational resilience. The outcome of the board meeting will be closely watched by stakeholders as a key inflection point in Mirc’s transformation journey.
Sources: Reuters, Chittorgarh.com, Value Research Online, Business Standard
