20 MICRONS LIMITED | 20ML | EQ
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Prospectus
20 MICRONS LIMITED
[Incorporated as a Private Limited Company on June 29, 1987 under the Companies Act, 1956 as 20 Microns Private Limited vide Certificate of Incorporation issued by
the Registrar of Companies, Ahmedabad, 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, Ahmedabad, Gujarat. Our Company has been allotted CIN No
U99999GJ1987PLC009768].
Registered Office: 9/10, GIDC Industrial Estate, Waghodia – 391760, Vadodara, Gujarat, India.
Tel.: +91-2668-262001; Fax: +91-2668-262447; E-mail: co_secretary@20microns.com; Website: www.20microns.com
Contact Person: Mr. Nikunj Savaliya, Company Secretary & Compliance Officer
PUBLIC ISSUE OF 43,50,632 EQUITY SHARES OF RS. 10/- EACH (“EQUITY SHARES”) OF 20 MICRONS LIMITED (THE “COMPANY” OR THE
“ISSUER”) FOR CASH AT A PRICE OF RS. [•] PER EQUITY SHARE (INCLUDING SHARE PREMIUM OF RS. [•] PER EQUITY SHARE),
CONSISTING OF A FRESH ISSUE OF 16,75,000 EQUITY SHARES (“FRESH ISSUE”) AND AN OFFER FOR SALE OF 26,75,632 EQUITY SHARES BY
GUJARAT VENTURE CAPITAL FUND 1995 (THE “SELLING SHAREHOLDER”), AGGREGATING TO RS. [•] CRORES (THE “ISSUE”). UPTO
2,17,532 EQUITY SHARES WILL BE RESERVED IN THE ISSUE FOR SUBSCRIPTION BY ELIGIBLE EMPLOYEES (THE “EMPLOYEE
RESERVATION PORTION”). THE ISSUE LESS THE EMPLOYEE RESERVATION PORTION IS REFERRED TO AS THE “NET ISSUE”. THE ISSUE
WOULD CONSTITUTE 30.81% OF THE POST ISSUE PAID –UP CAPITAL OF THE COMPANY.
PRICE BAND: RS. 50/- TO RS. 55/- PER EQUITY SHARE OF FACE VALUE RS. 10/- EACH
THE ISSUE PRICE IS 5.0 TIMES OF THE FACE VALUE AT THE LOWER END OF THE PRICE BAND AND 5.5 TIMES OF THE FACE VALUE AT THE
HIGHER END OF THE PRICE BAND
This Issue is being made in terms of clause 2.2.2 (a) (ii) & (b) (i) of SEBI (DIP) Guidelines, 2000, as amended from time to time, where by the “Project” has at
least 15% participation by Financial Institutions/Scheduled Commercial Banks, of which at least 10% comes from the appraiser(s). In addition to this, at
least 10% of the fresh issue size shall be allotted to QIBs, failing which the full subscription monies shall be refunded. (In case of delay, if any in refund, 20
Microns Limited shall pay interest on the application money at the rate of 15% per annum for the period of delay).
In case of revision in the Price Band, the Bidding/Issue Period will be extended for 3 additional working days after revision of the Price Band subject to the
Bidding/Issue Period not exceeding 10 working days. Any revision in the Price Band and the revised Bidding/issue Period, if applicable, will be widely
disseminated by notification to the Bombay Stock Exchange Limited (“BSE”) and the National Stock Exchange of India Ltd. (“NSE”), by issuing a press
release, and also by indicating the change on the website of Book Running Lead Manager (“BRLM”) and at the terminals of the member/s of the Syndicate.
This Issue is being made through the 100% Book Building Process wherein upto 50% of the Net Issue shall be allocated on a proportionate basis to Qualified
Institutional Buyers (“QIB”), out of which 5% of the QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds, subject to valid
Bids being received at or above Issue Price. Mutual Funds applicants shall also be eligible for Proportionate allocation under the balance available for QIBs
Further, not less than 15% of the Net Issue shall be made available for allocation on a proportionate basis to Non Institutional Bidders and not less than 35%
of the Net Issue shall be made available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above
the Issue Price.
RISK IN RELATION TO FIRST ISSUE
This being the first issue of Equity Shares of the Company, there has been no formal market for the Equity Shares of the Company. The face value of the
Equity Shares is Rs. 10/- per Equity Share and the Issue Price is 5.0 times of the face value at the lower end of price band and 5.5 times of the face value at
the higher end of price band. The Issue Price (as determined by the Company, in consultation with the Book Running Lead Manager to the Issue, on the
basis of assessment of market demand for the Equity Shares offered by way of Book Building Process) should not be taken to be indicative of the market
price of the Equity Shares after the Equity Shares are listed. No assurance can be given regarding an active and/or sustained trading in the Equity Shares of
the Company or regarding the price at which the Equity Shares will be traded after listing.
GENERAL RISKS
Investments in equity and equity related securities involve a degree of risk and investors should not invest any funds in this Issue unless they can afford to
take the risk of losing their investment. Investors are advised to read the risk factors carefully before taking an investment decision in this Issue. For taking
an investment decision, investors must rely on their own examination of the Company and the Issue including the risks involved. The Equity Shares issued
in this Issue have not been recommended or approved by the Securities and Exchange Board of India (“SEBI”), nor does SEBI guarantee the accuracy or
adequacy of this Red Herring Prospectus. Specific attention of the investors is invited to the statements in the section titled “Risk Factors” beginning on
page no. viii of this Red Herring Prospectus.
ISSUER’S ABSOLUTE RESPONSIBILITY
The Company, having made all reasonable inquiries, accepts responsibility for and confirms that this Red Herring Prospectus contains all information with
regard to the Company and this Issue, which is material in the context of this Issue, that the information contained in this Red Herring Prospectus is true
and correct in all material aspects and is not misleading in any material respect, that the opinions and intentions expressed herein are honestly held and that
there are no other facts, the omission of which make this Red Herring Prospectus as a whole or any of such information or the expression of any such
opinions or intentions misleading in any material respect.
IPO GRADING
The issue has been graded by Credit Analysis & Research Ltd. (CARE) and has been assigned the “IPO Grade 3”indicating Average Fundamentals; vide
their letter dated July 16, 2008, which is valid for a period of two months. For further details in this regard please refer page no. 16.
LISTING
The Equity Shares of the Company are proposed to be listed on Bombay Stock Exchange Limited ("BSE") and the National Stock Exchange of India Limited
("NSE"). The Company has received the in-principle approvals from these Stock Exchanges for the listing of the Equity Shares pursuant to their letters dated
March 27, 2008 and May 30, 2008 respectively. For the purpose of this Issue, BSE is the Designated Stock Exchange.
BOOK RUNNING LEAD MANAGER TO THE ISSUE
KEYNOTE CORPORATE SERVICES LTD.
4th Floor, Balmer Lawrie Building, 5, J.N. Heredia Marg,
Ballard Estate, Mumbai – 400 001.
Tel: +91–22– 30266000-3; Fax: +91–22– 22694323
Website: www.keynoteindia.net; E-mail: mbd@keynoteindia.net
Contact Person: Mr. Siddharth Seth
SEBI Registration No.: INM 000003606
AMBI No.: AMBI/ 040
REGISTRAR TO THE ISSUE
INTIME SPECTRUM REGISTRY LIMITED
C-13, Pannalal Silk Mills Compound, L.B.
Bhandup (West), Mumbai – 400 078
Tel: +91-22- 2596 0320 (9 Lines); Fax: +91-
Website: www.intimespectrum.com;
E-mail: 20microns.ipo@intimespectrum.com
Contact Person: Mr. Sachin Achar
SEBI Registration No.: INR 000003761
ISSUE SCHEDULE
BID/ ISSUE OPENS ON Monday, September 08, 2008
BID/ ISSUE CLOSES ON Thursday, September 11, 2008
GOTO http://www.nseindia.com/content/ipo/RHP_20ML.zip FOR Complete prospects of 20 MICRONS LIMITED IPO
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