In a notable secondary market development, seasoned investor Mukul Agrawal, known for his value-oriented bets in mid-cap and emerging growth stocks, offloaded 1,31,193 equity shares of MITCON Consultancy & Engineering Services on 22 May 2025, in a deal valued at INR 1.05 crore.
The shares were sold at an average price of INR 80.52, reflecting a 27.56% reduction in his holding. Agrawal’s stake dropped from 4,76,187 shares (2.70%) to 3,44,994 shares (1.96%), based on an estimated total outstanding share count of ~1.76 crore.
While Agrawal continues to hold a substantial investment, this partial exit comes at a time when MITCON is undergoing one of the most transformative phases in its recent history.
🏢 MITCON: Transitioning Into a Multi-Vertical Engineering Force
Headquartered in Pune, MITCON is an engineering consulting and project management company with interests in training, environmental services, renewable energy, and financial advisory. With over four decades of industry presence, the firm has evolved from a regional consultancy to a national player now entrenched in energy transition strategies.
🔍 MITCON FY25 Results: Snapshot (Standalone):
| Metric | FY25 | FY24 |
|---|---|---|
| Total Revenue | 56.13 | 73.80 |
| Net Profit | 5.34 | 7.58 |
| EPS (Basic/Diluted) in INR | 3.77 / 3.26 | 5.65 / 5.52 |
| Total Assets | 174.67 | 161.81 |
While topline and profitability saw a decline from the previous year, much of it can be attributed to the strategic withdrawal from low-margin project services and the recalibration of operational focus.
🧾 MITCON Rights Issue: Clean Execution, Zero Deviation
To raise growth capital without taking on more debt, MITCON launched a rights issue in FY25 — a method where the company offers new shares to its existing shareholders at a discounted price.
Here’s how it worked:
- Total Issue Size: INR 32.23 crore
- Shares Offered: 42,41,321 equity shares
- Offer Price: INR 76 per share
- Structure: Partly-paid — shareholders paid INR 19 per share upfront, with the remaining INR 57 to be paid later.
💸 How Much Was Raised in FY25?
- MITCON received INR 8.06 crore from the first INR 19/share payment.
- This money was fully utilized by 31 March 2025 — as audited and confirmed by J Singh & Associates.
🛠️ Where Was the Money Used?
The proceeds funded:
- Investment in MITCON Sun Power (its green energy arm)
- Upgrading environmental labs
- Capital for new joint ventures
- Office infrastructure upgrades
- Working capital and general business needs
📅 What’s Next?
- The remaining INR 57/share (called the first and final call) will be collected between:
- 23 June – 23 July 2025
- Record date to determine eligible shareholders: 13 June 2025
🔧 Green Energy & Asset-Light Ventures
MITCON is restructuring into a hybrid model — combining its core consulting backbone with renewable energy investments through subsidiaries and SPVs.
Recent moves include:
- Incorporation of MSPL Unit 6 Ltd and MSPL Unit 7 Ltd under MITCON Sun Power
- Acquisition of 49% equity in three solar SPVs (MINVEN Solar 01–03) aligned with the PM-KUSUM 2.0 scheme
- Strengthened positioning in the wind and solar energy segment, now contributing ~16.5% of consolidated revenue
FY25 Segment Revenue (Consolidated):
| Segment | Revenue (INR Crore) | YoY Growth |
|---|---|---|
| Consultancy & Training | 75.96 | +5.3% |
| Project Services | 18.10 | -54.7% |
| Wind/Solar Generation | 18.66 | +11.5% |
📉 Investor Takeaway
Agrawal’s 27.56% stake reduction—from 2.70% to 1.96%—is significant, but not an exit. It could signal:
- Profit booking after a long holding period
- Portfolio rebalancing amid rising mid-cap valuations
- Caution over delayed uptick in profitability despite capital infusion
Importantly, Agrawal continues to hold shares worth ~INR 2.78 crore, suggesting he remains cautiously optimistic about MITCON’s long-term story.
🧮 Balance Sheet Strengthening & Cash Flows
Consolidated Cash Flow (FY25):
| Metric | in INR Cr |
|---|---|
| Operating Cash Flow | 20.62 |
| Investing Cash Flow | 13.93 |
| Financing Cash Flow | (41.03) |
| Net Cash Change | (6.48) |
| Closing Cash | (7.57) |
Despite large capex outlays, the company maintained positive operational cash flow, aided by rights issue funds and strategic asset deployment.
🔭 Outlook: What to Watch in FY26
- Execution of solar projects via MINVEN SPVs and MSPL units
- Conversion of partly paid shares and full realization of INR 32.23 crore
- ESOP impact on dilution (1.78 lakh stock options granted at INR 87.20 strike)
- Consolidated net profit growth and debt reduction trends
📌 Final Words
Mukul Agrawal’s trimmed holding, while symbolic, shouldn’t be viewed in isolation. MITCON’s story is one of deliberate transformation: streamlining operations, doubling down on clean energy, and judiciously using capital raised from shareholders.
For long-term investors, this transition phase presents both risk and opportunity — and Mukul Agrawal’s reweighted commitment suggests that while some near-term caution is warranted, the broader thesis remains intact.
Disclosure: The author does not hold any position in MITCON. This article is based on publicly available information and financial filings. It does not constitute investment advice.