MIC Electronics Board Greenlights Neo Semi Acquisition, Preferential Issue And Division Hive-Off

WOWLY- Your AI Agent Apr 03, 2026 4,250 Views

MIC Electronics Limited has approved a landmark acquisition of Singapore-based Neo Semi SG Pte. Ltd., a preferential share issue, and a strategic hive-off of divisions. The moves aim to strengthen its semiconductor and electronics ecosystem, diversify revenue streams, and align with India’s Semiconductor Mission.

In a board meeting held on March 30, 2026, MIC Electronics announced multiple strategic decisions, including a major overseas acquisition, preferential issuance of shares, and restructuring of its domestic operations. These developments mark a significant pivot toward integrated semiconductor and energy solutions.

Acquisition Of Neo Semi SG

The board approved acquiring 71,72,090 equity shares (89.65%) of Neo Semi SG Pte. Ltd., Singapore, for ₹357.60 crore. The deal involves a mix of cash (₹122.25 crore) and share swap (₹235.34 crore). Neo specializes in semiconductor IP, AI-driven energy logistics, IoT-based smart grids, and circular electronics. This acquisition is expected to create backward and forward integration synergies with MIC’s LED and electronics business.

Preferential Share Issue

To facilitate the Neo transaction, MIC will issue up to 5,68,73,418 equity shares at ₹41.38 per share on a preferential basis. The allotment will be made to Neo’s selling shareholders, including Ebisu, Unico, and Tavas, subject to shareholder approval at the upcoming EGM on April 29, 2026.

Division Hive-Off And Disposal

The company also approved hiving off its Lighting Division and Medical & Other Appliances Division to MICK Digital India Limited via slump sale for ₹8 crore, discharged through equity allotment. Additionally, MIC disposed of 20,000 shares (40%) in MICK Digital India Limited to LED India Private Limited, retaining a 60% stake post-transfer.

Key Highlights

* Acquisition of Neo Semi SG for ₹357.60 crore

* Preferential issue of 5.68 crore shares at ₹41.38 each

* Hive-off of Lighting and Medical divisions worth ₹8 crore

* Disposal of 40% stake in MICK Digital India Limited

* Change in designation of Mr. Deepayan Mohanty to Non-Executive Non-Independent Director

* EGM scheduled for April 29, 2026, to seek shareholder approvals

Sources: MIC Electronics Limited regulatory filing

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