Vadodara-based 20 Microns Limited, a micronised minerals manufacturer, is going for a public offering in which it will dilute 30.81% of its post issue paid up capital. 20 Microns is backed by the early stage venture capital firm GVFL, who invested out of its Gujarat Venture Capital fund 1995. 20 Micron Red Herring Prospectus (“RHP”) with the Registrar of Companies, Gujarat, at Vadodara, on August 19.
The issue will have a price band of Rs 50-55, and GVFL will dilute half of its shareholding in this issue. 20 Micron will issue 43,50,632 equity shares of Rs 10 each, of which 26,75,632 equity shares will be issued by GVFL. The venture capital fund could rake in anywhere between Rs 13.4 crore to Rs 14.7 crore from the issue. After the IPO, the stake of GVFL will go down to 14% from the present 43% as 20 Micron will also be issuing fresh shares.
20 Micron claims to be the largest manufacturer of white minerals in India with production of over 1,80,000 tonnes. Through its R&D section and 20 Micron has introduced minerals of sub micron size, helping industrial segments to get benefits in terms of functional properties and pricing of products. The application for its products can be found in paint, coating, print ink, plastics and paper.
GVFL has invested in more than 60 companies through it five venture capital funds.