This is one company whose IPO oversubscribed by a whopping 50 times and the shares listed at a premium of 120 % to the offer price. Once it was a darling of investors including top institutional and foreign investors and stock price hits a high of Rs.1088 ( Before stock split from Rs.10 to current Rs.2) .From 2012 , company concentrating in two business verticals – True Colour LED Displays and LED Lighting Solutions . True colour LED Display business consists of Passenger Information Displays for Railways,Mobile Displays fitted on Trucks or Trailers,LED Advertisement Boards...etc .LED lighting solution business consists of Solar Street Lights , Solar Lanterns, Railway Coach Lighting ..etc. Company’s performance badly affected due to weak order flow from Railway because of Indian Railway’s pathetic financial situation, Severe recessionary situation in over all economy ..etc. Company’s promoters pledge their shares and on account of non repayment these shares invoked and sold in market which resulted in sharp decline in promoter holding from 40% to less than 10 % .
Last year company received an order from Nashik Municipal Corporation (NMC) to replace 69,541 street lights. This order is the largest such order so far in India cost close to Rs.150 Cr . Company faced lot of legal challenges to execute this order and finally it got permission to do the same. As a note to latest financial result , company clarified that they started execution of the same during the end of the September quarter. This order should be completed in next six months. In another recent development from company is its introduction of 3-D hologram technology using LEDs .This technology widely used by Telugu Desam party in the recently concluded elections.The most important development happened in MIC in recent times is the allotment of 74,462,070 share warrants to promoters and others
It is true – its future is really uncertain , but still some hopes are reviving . As I said at the beginning its products came before its time . Ten years back usage of LED was limited in various applications .But now people well aware about it and accepting as a good option for energy saving . One of its major customer was Railway and after a long time Railways’ financial health is expected to improve going forward . Our prime minister recently indicated green signal for privatization and renovation of railway stations
.MIC is the only company approved by RDSO for 13 types of Railway Coach lighting products to be used in Air conditioned coaches. Any improvement in Railway’s financial health and renovation of coaches and stations may augur well for MIC going forward . Prime minister’s prestigious smart city projects and Andhra Government's decision to build world class capital city for the state may increase the use of LED based products as a best alturnative for energy savings . If company can successfully complete the ongoing Nasik municipality street light project , it will surely referred as a testimony for company’s ability to execute similar type large projects. I believe , after a long gap promoters are confident about the future of company and that is why they are hiking their stake from current 8 % to a decent level by pumping substantial amount. Company also decided to sell one subsidiary in an effort to reduce its debt level.
