Security systems firm Micro Technologies (India) Ltd is raising Rs 20 crore through compulsorily convertible debentures from media firm HT Media that strikes ad-for-equity deals.
Micro Technologies (India) will issue 5 lakh debentures at the rate of Rs 400 each to HT Media Ltd. Micro Technologies’ share price rose 7.5% in early trading hours to Rs 129.4 and if debentures are converted into shares at this price, HT Media will get almost 10% stake in the firm, eventually.
Incidentally, Micro Technologies (India) is also backed by rival media firm Bennett Coleman & Co Ltd that also strikes ad-for-equity deals, besides Acacia Partners LP. Bennett Coleman had picked a quarter of a million shares at a price of Rs 250.4 at the peak of market valuations just before the bourses went into a sharp correction mode three years ago. It had invested Rs 6.26 crore to buy the shares that is now valued at Rs 3.2 crore
Micro Technologies (India) is a developer, manufacturer and marketer of security devices in various segments such as vehicle, premises, mobile, etc. It has been swiftly expanding overseas through local partnerships besides setting up own operations in the recent past.
For the half year ended September’10 the company had consolidated revenues of Rs 267 crore with net profit of Rs 47.6 crore. It derives a little less than half of its revenues from its two subsidiaries: Micro Technologies that is engaged in range of security products for commercial & residential premises besides Micro Retail a company engaged in the area of retailing a range of electronic security, software and messaging products for vehicle, premises, and other assets.