MIRC Electronics (Onida) Secures ₹149.52 Crore via Preferential Allotment

MIRC Electronics Limited, the Indian manufacturer behind the popular Onida brand, has secured a significant funding of around ₹149.52 crore. This capital was raised through a preferential allotment, a method where a company issues shares to specific investors at a pre-determined price.

Key participants in this fundraising include Authum Investment and Infrastructure Limited, along with other unnamed investors. Veritas Legal acted as the legal advisor, guiding MIRC Electronics through the entire fundraising process, including strategic advice and transaction documentation. The transaction team at Veritas Legal was led by Sneha Nagvekar.

MIRC Electronics Limited, established in 1981, is a well-known Indian company manufacturing and trading a wide range of consumer electronics and home appliances such as televisions, air conditioners, and washing machines under the Onida brand.

Impact: This infusion of capital is crucial for MIRC Electronics. It can be used for various purposes, such as expanding manufacturing capacity, investing in research and development for new products, strengthening its distribution network, or improving its financial health. Such a fundraising can lead to improved market competitiveness, potentially boosting its stock performance if listed, and enhance its ability to navigate the challenges in the consumer electronics industry. Impact Rating: 6/10

Difficult Terms: Preferential Allotment: A method where a company issues new shares to a selected group of investors at a fixed price, usually negotiated privately. This is different from a public offering. Consumer Electronics: Electronic devices used by consumers for entertainment, communication, and productivity, such as televisions, smartphones, and laptops. Home Appliances: Electrical machines used in households for tasks such as cooking, cleaning, and climate control, like refrigerators, washing machines, and air conditioners. Transaction Documentation: The legal paperwork required to complete a financial or business transaction, outlining the terms and conditions.