Railway penny stock under Rs 50: MIC Electronics to raise capital via Qualified Institutions Placement
DSIJ Intelligence-1 / 02 Dec 2025/ Categories: Multibaggers, Penny Stocks, Trending
The stock gave multibagger returns of 330 per cent in 3 years and a whopping 5,800 per cent in 5 years.
The Board of Directors of MIC Electronics has approved two key proposals to raise capital, totalling up to Rs 250 crore and USD 15 million, respectively. These proposals, classified as Special Business, aim to secure funds for the company through different mechanisms. The first approval authorises the issue and allotment of securities to raise funds up to Rs 250 crore (Rupees Two Hundred and Fifty Crores only) via a Qualified Institutions Placement (QIP) directed at Qualified Institutional Buyers, with the flexibility to execute the placement in one or more tranches. Concurrently, the Board also approved raising an additional amount not exceeding USD 15 Million through the issuance of Foreign Currency Convertible Bonds (FCCBs) on a Private Placement Basis, also permitting this to be done in one or more tranches. This dual approach provides the company with diversified funding channels to support its strategic objectives.
Additionally, MIC Electronics Limited has received a Letter of Acceptance (LoA) from the Vijayawada Railway Division (an Indian Railways Government Authority) for the provision of an IP-based Integrated Passenger Information System at the ANV and YLM Railway Stations in Andhra Pradesh. The contract, which was secured through a tender process and is domestic, is valued at Rs 1,49,88,884.77 (Rupees One Crore Forty-Nine Lakh Eighty-Eight Thousand Eight Hundred Eighty-Four and Seventy-Seven Paise Only). The scope of work involves the design, supply, installation, testing, and commissioning of the system, which is scheduled for execution and completion within 12 months from the date of the agreement's execution.
About the Company
MIC Electronics Ltd, founded in 1988, is a leading manufacturer of LED displays (indoor, outdoor, mobile), lighting solutions (indoor, outdoor, Solar), telecom equipment, railway and software. They also produce medical equipment like oxygen concentrators and batteries. Headquartered in India, MIC exports its products globally and has a presence in the USA, Australia, the UK and other countries. MIC Electronics Ltd has been awarded ISO 45001:2018 and ISO 14001:2015 certifications, recognising its robust Environmental Management System across its diverse product portfolio, including LED display systems, lighting products, EV chargers and railway-related electronic solutions.
Result: According to Quarterly Results, the net sales increased by 226 per cent to Rs 37.89 crore and net profit increased by 30 per cent to Rs 2.17 crore in Q2FY26 compared to Q1FY26. In its half-yearly results, the net sales increased by 30 per cent to Rs 49.50 crore in H1FY26 compared to H1FY25. The company reported a net profit of Rs 3.84 crore in H1FY26 compared to Rs 4.10 crore in H1FY25.
MIC Electronics has a market cap of over Rs 1,100 crore and has delivered a good profit growth of 19.2 per cent CAGR over the last 5 years. The stock gave multibagger returns of 330 per cent in 3 years and a whopping 5,800 per cent in 5 years. The promoters of the company hold a 58.01 per cent stake as of September 2025.
Disclaimer: The article is for informational purposes only and not investment advice.