Mirc Electronics Ltd, which makes electronics products under Onida and IGO brands, is raising nearly Rs 144 crore ($22 million) in a round led by ace stock market investor Ashish Kacholia.
Mirc Electronics will use the funds to meet its long-term working capital and corporate requirements, it said in a stock market disclosure.
Financial services provider Bengal Finance & Investment Pvt. Ltd, among other investors, is also putting money in this round.
The company’s promoters will offload 15% stake through the transaction, it said.
The firm’s board on December 27 approved the 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. 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 company said.
Mirc Electronics had secured Rs 22.75 crore ($3.5 million) from ad-for-equity media investor Bennett, Coleman & Co Ltd, which publishes newspapers such as The Times of India and The Economic Times, two years ago.
Onida was started by Gulu Mirchandani and Vijay Mansukhani in 1981 in Mumbai. It was one of the top homegrown TV brands before Korean brands Samsung and LG intensified competition and eventually went on to dominate the sector.
Even as some other big electronics brands like BPL collapsed, Onida has managed to stay afloat. It diversified its product basket from TV to appliances and mobile handsets. Though it has managed to survive, it is a pale shadow of its former self.
The company’s revenue has been sharply declining since FY15. It posted net sales of Rs 747 crore in FY17 compared with Rs 771 crore the year before.