MIC Electronics Ltd. (BSE:532850) announced a private placement of preferential shares and warrants to promoters and non promoters on June 5, 2012. The board of directors of the company approved the transaction. The transaction is subject to approval of shareholders and concerned stock exchanges. On June 30, 2012, the company announced that it has received approval for the deal from the shareholders. The company will issue 14,150,000 warrants at INR 7.70 per warrant to promoters and 36,525,000 warrants at same price to other investors. The warrants are convertible into shares with the ratio of 1:1. The warrants to be issued will be convertible into shares of the company within eighteen months from the date of issue. The company will receive 25% of the exercise price of the warrants as upfront payment as per the Securities Exchange board of India (Disclosure and Investor Protection, Guidelines 2000) at INR 1.925 per warrant and the balance will be received at the time of exercise of warrants at INR 5.775 per warrant. The company will issue 50,675,000 warrants for gross proceeds of INR 97,549,375.