MIC Electronics Ltd. (BSE:532850) announced a private placement of preferential shares and warrants to promoters and non promoters on February 27, 2012. The transaction is subject to approval of shareholders and concerned stock exchanges. On March 26, 2012, the company announced that the placement was approved at the extra general meeting of the company. The company will issue 15,000,000 warrants to promoters and 35,675,000 warrants to the investors. Both the warrants to be issued will be convertible into shares of the company in 1:1 ratio within eighteen months from the date of issue. The company will receive 25% of the exercise price of the warrants which is INR 2.40 as upfront payment as per the Securities Exchange board of India (Disclosure and Investor Protection, Guidelines 2000) and the balance of INR 7.20 will be received at the time of exercise of warrants. 3,750,000 warrants will be issued to the promoters Chaitanya Deepthi Maganti and Chaitanya Keerthi Maganti respectively and 7,500,000 warrants will be issued to promoter Usha Rani Maganti. The warrants to be issued to the investors will be issued to D Hitesh Chenchu Ram, Magnum Capital Partners Ltd, and Rei Atluri in the amount of 2,500,000, 2,500,000, and 2,400,000 respectively. Other individual investors will also participate in the round. On May 25, 2012, MIC Electronics Ltd. cancelled the transaction.