20 Microns Ltd, a manufacturer of white minerals, announced that it has filed the draft red herring prospectus with SEBI to enter the capital markets soon with an initial public offering (IPO). The company plans to offer 94.25 lakh equity shares of Rs 10 each for cash at a price to be decided through a 100 per cent book building process.
20 Microns Limited, a pioneer and leader in the micronised minerals and trend setter in the market for usage of ultrafine minerals for the Paints & Plastic Industries, has fixed the price band between Rs 50 and Rs 55 per Equity Share for its initial public offering (IPO) of 43,50,632 equity shares of Rs 10 each for cash at a price to be decided through a 100% Book-Building Process. The Company filed a Red Herring Prospectus (RHP) with the Registrar of Companies, Gujarat, at Vadodara, on August 19, 2008.
The Issue consists of a fresh issue of 16,75,000 Equity Shares of Rs 10 each and an offer for sale of 26,75,632 Equity Shares by Gujarat Venture Capital fund 1995. Up to 2,17,532 Equity Shares will be reserved for subscription by eligible employees. The Issue will constitute 30.81% of the post issue paid up capital of the Company. The Issue has been graded by the Credit Analysis & Research Limited ("CARE") and has been assigned the "IPO Grade 3" indicating Average Fundamentals.
Use of IPO Money
The Company intends to utilize the proceeds of the fresh issue in the IPO towards the current ongoing expansion plans of the manufacturing capacities at various locations, invest in the sub-micron particle sizes required by end-market and general corporate purposes.
Listing
The Equity Shares are proposed to be listed on Bombay Stock Exchange Ltd. and National Stock Exchange of India Ltd.
The Book Running Lead Manager is Keynote Corporate Services Limited.
About the company
20ML, an ISO 9001:2000 certified company, is one of the India's largest producers of white minerals with an annual turnover of over 180,000 tons. It produces functional fillers, specialty chemicals and extenders which are supplied globally. It has four different captive mines and eight manufacturing locations spanned across the country with total mineral reserves of 60,00,000 metric tons.
Currently, the company has about 70 international customers based in 30 countries utilizing 450 product grades, which are in addition to approx. 700 local customers spread across India.
The renowned Top 10 customers are Asian Paints, Berger Paints India, ICI India, Kansai Nerolac, Akzo Nobel Coatings, Plastiblend India, Pidilite Industries, Kandui Fillerteknik, Finolex Cables and Shriram Polytech.
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