Assignment-2

Sub: - Financial Institutions & Services

Submitted to:-
Bhavdeep S Kochar

Submitted by:-
Sushil Kumar
A-19
20 Microns Limited
[Incorporated as a Private Limited Company on June 29, 1987 under the
Companies Act, 1956 as 20 Microns Private Limited vides Certificate of
Incorporation issued by the Registrar of Companies, Ahmadabad, and Gujarat. The
name of the Company was changed to 20 Microns Ltd. upon conversion into
Public Limited Company with effect from January 17, 1994 and a fresh Certificate
of Incorporation was obtained from Registrar of Companies, Ahmadabad, and
Gujarat. Our Company has been allotted CIN No U99999GJ1987PLC009768].

1. what are the issue dates:- 06 Oct 2008

2. Who’s the underwriter: - The BRLM and the Syndicate Member.
3. What is the price band: - PRICE BAND: RS. 50/- TO RS. 55/-
PER EQUITY SHARE OF FACE VALUE RS. 10/- EACH

4. What’s the capital structure of the company? :-( Liabilities and

)
Provisions 5374.17+1244.48(Equity Share Capital) =6618.65(in lakh.)

5. What is the purpose of this IPO:-

Objects of the Issue
the proceeds from the proposed Issue of Equity Shares are intended to be
deployed for:

 To augment the resources for the current ongoing expansion of its

manufacturing capacity atvarious locations and invest in the sub
micron particle sizes required by end market
 General Corporate Purposes
 To enable listing the Equity Shares of our Company on the Stock
Exchanges

6. What were the different views of media about this IPO?

20 Microns: Corporate Announcement

02/03/2010

Published on 03 February 2010

20 Microns Ltd has informed BSE that 20 Microns Nano Minerals Ltd. has
become a subsidiary of the Company by virtue of allotment of 35,00,000 Equity
Shares of Rs. 10 each (constituting 98.6% of the total paid up capital of the said
Company) to the Company.
4.   HIGHLIGHTS OF INCREASING TRENDS

01/30/2010

20 Microns Limited Results, Q3 - F Y ’2009-10: For the quarter ended

December 31, 2009, Net Profit has increased to Rs.112.27 Lacs from Rs.
(48.96) Lacs, Sales & Operating Income has risen to Rs. 4308.69 Lacs from Rs.
2981.13 Lacs, Profit before depreciation, interest and tax (PBDIT) has
increased by 59.38% i.e. Rs. 461.29 Lacs from Rs. 289.41 Lacs and Profit
before tax (PBT) has increased to Rs. 124.14 Lacs from Rs. (67.13) Lacs, as
compared to the corresponding quarter of the previous year.

5.   20 Microns public issue subscribed 4.29 times

09/11/2008

Mumbai, 11 Sept 2008:

The initial public offering of 20 Microns, the first company whose IPO falls
under SEBI’s Applications Supported by Blocked Amount (ASBA) process,
was subscribed 4.29 times. The issue had opened for subscription on September
8 and closed on Thursday. It received 1.8 crore bids against the 43.5 lakh equity
shares on offer.
6.   First IPO with new Sebi guidelines of ASBA

09/01/2008

Mumbai, 01 Sep 2008: 

Vadodara-based 20 Microns Ltd is set to become the first company to come out with an
initial public offer (IPO) through the new Securities and Exchange Board of India (SEBI)
guidelines of Applications Supported by Blocked Amount (ASBA).
7.   Asba clicks with 20 Microns IPO, 89% retailer cash stays untouched
08/29/2008

Published on Fri, Aug 29, 2008

The initial public offering (IPO) of 20 Microns, which saw the applications
supported by blocked amount (Asba) process making its debut, witnessed only
11 per cent of the application money getting released by banks for the purpose
of allotment.
8.   20 Microns IPO opens on Sept 8, 2008

08/29/2008

Published on Fri, Aug 29, 2008

20 Microns, a pioneer and leader in the micronised minerals proposes to enter

the capital markets on September 8, 2008 with a public issue of 43,50,632
Equity shares of Rs 10 each through 100% book building process. The IPO will
close on September 11, 2008. The company has fixed the price band between
Rs 50 and Rs 55 per equity share.
9.   20 Microns Limited IPO: Price band fixed between Rs 50 and Rs 55 per Equity Share

08/26/2008

Mumbai, Maharashtra, August 26, 2008

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.
10.   20 Microns Limited files DRHP with the SEBI

03/18/2008

Mumbai, March 18, 2008

20 Microns Limited (20ML), one of the pioneers in the micronised minerals

and trend setter in the market for usage of ultrafine minerals ranging from 20
microns to 2 microns particle size for Paints & Plastic Industries, has filed the
Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board
of India (SEBI) to enter the capital market soon with an Initial Public Offering
(IPO).
7. The stock performed after getting enlisted on exchange
BSE: 533022 | NSE: 20MICRONS
  BSE NSE
Open 58.85 58.50
Day High 58.85 58.50
Day Low 55.20 55.30
Previous Close 56.20 56.25
52-Week high 63.00 64.30
52-Week low 36.75 33.85
P/E 13.71 13.67
Market Cap (Rs cr) 82.11 81.9
Volume 45712.00 52221.00

8. Did the investors gain or lose from this IPO?

Investors are gaining from this IPO due to price band which is 50-
55, and there is not so much high gain, according to CNBC TV.

9. Also discuss the future prospects of this company.

02/08/2010 

Garware Elastomeric confers Best Vendor

award to 20 Microns
Garware Elastomeric Limited, a part of the multimillion-dollar RBG Group of companies, has
conferred the prestigious 'Best Vendor 2010-11' award to 20 Microns Limited.

31/07/2010 

20 Microns Launches High Aspect Ratio Talc

15/07/2010 

20 Microns Launches Hyper Mat - Flash

Calcined Kaolin
30/06/2010 

20 Microns Launches Lit homer - White

Pigment Opacifier
31/12/2
 
010

Kansai Nerolac Offers Best

Vendor Award to 20 Microns
20 Microns has been awarded "BEST VENDOR AWARD" of the
year 2009-10 by M/s. Kansai Nerolac Limited, Mumbai. The Award
was received by Mr. Chandrakant Parikh, CMD, 20 Microns at the
hands of Mr. Bharukha at an award distribution ceremony held on
Saturday 10th April, 2010, in the presence of more than 100 MDs &
CMD's of other vendors.

Mr. Parikh speaking on the occasion attributed the success to the

positive attitude and initiation by the team work of the employees of the company and
commended them for coming forward to take responsibilities and their efficient, effective work
methods.

15/11/2009 

20 Microns celebrates World Diabetes Day

2009
20 Microns Foundation celebrated World Diabetes Day 2009 on 15th Nov 2009 at Vadodara.