The initial public offer of 20 Microns was subscribed 0.82 times on the third day of its opening. The issue received bids for 35.51 lakh shares, in which 11.79 lakh bids were at the cut off price.
The public issue of 43,50,632 equity shares of Rs 10 each, is in the price band of Rs 50-55 per share. The issue closes 11 September 2008.
Through this IPO, the company plans to raise around Rs 9 crore to fund its expansion. Meanwhile, Gujarat Venture Capital Fund, which currently holds 43% stake in the company, will offload a part of its holding, reducing it to 19% of the post-issue equity.
The company intends to utilise the proceeds of the issue 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.
The issue had been graded by the Credit Analysis and Research Limited (CARE) and has been assigned the IPO Grade 3, indicating Average Fundamentals. The equity shares are proposed to be listed on Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE).
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