Avoid : 20 Microns IPO

20 Microns is entering into the IPO market on 8th September'08 with a price band of Rs 50-55 per share of 43,50,632 equity shares of Rs 10 each,through a 100 per cent book-building process. The issue consists of a fresh issue of 16,75,000 equity shares of Rs 10 each and offer for sale of 26,75,632 equity shares by Gujarat Venture Capital Fund. The issue will constitute 30.81 per cent of the post issue paid up capital of the company. 20 Microns intends to utilise the proceeds of the fresh issue towards the current on-going expansion plans of the manufacturing capacities at various locations, invest in the sub-micron particle sizes required by end-market and general corporate purposes.

20 Microns is setting up a dry grinding process unit for talc with a capacity of 7,000 tonnes per annum at Haldwani in Uttaranchal. It is also planning to expand capacity of dry grinding process for talc from the existing 5,000 tonnes per annum to 17,000 tonnes per annum moreover 20 Microns is a largest producer of white mineral in India with an annual turnover of 1.80 lac TPA.
20 Microns is having mining rights four different parts (West,East,South and North including international) of the country and each part is having its own production facilities. 20 Microns is leading in its segment in manufacturing of Calcium carbonate,talc,dolomite and silica and also mica.

There are no similar listed players are not available to compare the earnings and fundamentals of the 20 Micros. After considering the all the parameters of the company one can't expect decent gains from this issue. 20 Microns IPO will close on 12th Sepetember'08.