MIC Electronics Soars 10% on Winning Massive ₹1,141 Crore Government Contract

In a significant development for the infrastructure and engineering sector, MIC Electronics Limited (NSE: MICEL) witnessed a sharp rally in its stock price, climbing 9.91% to ₹38.94 in intraday trading. The surge followed the company’s regulatory filing to the stock exchanges, announcing the receipt of a Letter of Acceptance for a high-value project worth ₹114.10 crore (approximately ₹1.14 billion) from the Nava Raipur Atal Nagar Vikas Pradhikaran, a government body in Chhattisgarh.

The project involves the designing, engineering, supply, construction, testing, commissioning, and operation & maintenance of infrastructure works at a common facility centre in Sector 22 of Nava Raipur Atal Nagar, Raipur. This order is expected to be executed within a tight timeline of 10 months, reflecting the company’s capability to handle large-scale government contracts.

Market Reaction

Investors responded enthusiastically to the news, driving the stock to an intraday high of ₹38.97, up from the previous close of ₹35.43. The trading volume spiked significantly, indicating strong buying interest. MIC Electronics, with a market capitalization of nearly ₹938.74 crore, has been trading at a high P/E ratio of 97.96, suggesting that the market is pricing in strong future growth expectations.

Key Details from the Filing

According to the annexure submitted to the BSE and NSE:

• The order is domestic and was secured through a tender process.
• The company clarified that no promoter or promoter group entities have any interest in the awarding authority.
• The order does not qualify as a related-party transaction and is conducted at arm’s length.
• The formal agreement detailing terms and conditions is yet to be finalized.

Analyst Insights

Market experts view this contract as a positive catalyst for MIC Electronics, which has been trading closer to its 52-week low of ₹33.31 in recent months. The project not only adds substantial revenue visibility but also strengthens the company’s order book and credibility in the infrastructure domain.

“This is a significant win for MIC Electronics, especially coming from a government entity. It reinforces their position in the EPC (Engineering, Procurement, Construction) and infrastructure maintenance space,” said a sector analyst on condition of anonymity.

Looking Ahead

With the stock now trading near ₹39, investors will be closely watching the company’s execution capabilities over the coming quarters. The timely completion of this project could pave the way for more such orders, both from state and central government agencies.

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