Mirc Electronics Ltd, which owns the Onida brand, said its board has approved raising of equity investment of Rs 144.12 crore from marquee investors to meet its long-term working capital and corporate requirements.
The board has approved issue of 1.92 crore equity shares and 1.92 crore warrants convertible into equity shares on preferential basis at issue price of Rs 37.53 to its several non-promoters to augment its long-term working capital and corporate requirements, a company statement said.
The issue price has been determined in accordance with the provisions of SEBI regulations, 2009. This would result in infusion of Rs 144.12 crore worth of equity into the company, the statement said.
Every warrant is entitled to receive one equity share at the time of conversion within a period of 18 months from the date of issue of warrants, the electronics and consumer durables company said.
“This reiterates the faith of the investors in the growth prospects of the company. This infusion of equity into the company at this juncture would definitely strengthen our position and improve our aggression in the market,” said Managing Director, Mirc Electronics, Vijay Mansukani.
The board has convened an extraordinary general meeting (EGM) of the shareholders on December 27 for getting their approval for the issue of shares and warrants.
Meanwhile, the company said it has strengthened its washing machines product portfolio by launching 15 new models in front the load, top load and semi-automatic category.
The company’s facility in Roorkee, Uttarakhand, can manufacture 7.20 lakh washing machines per annum on three shift basis, the company statement said.
Onida has sold 1.80 lakh washing machines during the last financial year and with launching these new models, the company is expecting this number to rise.
Mirc Electronics reported net profit of Rs 12.04 crore in Q2 September 2017 compared with net loss of Rs 9.92 crore in the same period of last fiscal.
Revenue from operations rose 29 per cent to Rs 201.09 crore over Q2 September 2016.