Small-cap stock under ₹100: MIC Electronics share price rallied as much as 5.68 per cent to ₹58.07 apiece in Monday’s trading session after the company signed MoU with Chipex Technologies and received order from South East Central Railway and Northern Railway.
The small-cap stock has remained volatile amid weak market sentiments in the near term. MIC Electronics shares have gained 4.49 per cent in five sessions, however, has remained flat in six months by falling nearly 0.10 per cent.
Meanwhile, the small-cap stock has more than doubled shareholders wealth by surging over 380 per cent in five years.
What’s behind the rally?
MIC Electronics announced on Monday that it has entered a Memorandum of Understanding (MoU) with Chipex Technologies to establish a collaborative framework between both the companies to jointly develop custom semiconductor solutions aligned with MIC’s product roadmap.
“We wish to inform you that M/s. MIC Electronics Limited (“MIC”) (“OEM Partner”) has entered a MOU (Memorandum of Understanding) with M/s. Chipex Technologies Private Limited (“Chipex”) (“Chip Development Partner”). The Memorandum of Understanding establishes a collaborative framework between Chipex and MIC to jointly develop custom semiconductor solutions aligned with MIC’s product roadmap. Through this partnership, MIC aims to enhance product differentiation, performance, and long-term supply stability by using co-developed custom silicon instead of standard components,” the company said in the exchange filing.
In an another exchange filing dated October 27, MIC Electronics announced that the company has received Letter of Variations from South East Central Railway and Northern Railway.
The LOA received from South East Central Railway for provision of Signalling and Telecom Works in connection with Station Development Works under Amrit Bharat Station Scheme at Nainpur (NIR), Chhindwara (CWA), Seoni (SEY) and Mandlafort (MFR) Stations in Nagpur Division of SECR for an amount of ₹82,56,066.
Meanwhile, LOA variation received from Northern Railway for provision of passenger amenities (Telecom) and expansion of information system to facilitate Divyangjan and utility shifting in connection with Amrit Bharat station scheme at TKJ, GHNA, MDNR, SZM, PWL, BVH, FDN, BGZ, ROK, PTRD, SMQL, NUR, SNP, JHI, NRW, MSZ STN of Delhi division for an amount of ₹33,08,094.
The total aggregate value of the said orders stood at ₹1,15,64,160, as per the exchange filing.
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