The Vadodara-based 20 Micron Ltd (20 ML), having one of the largest production facilities for white minerals in India, is planning to enter the capital market in the next few months to raise Rs 40 crore to part-fund its expansion projects. 20 ML has already filed the draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), Mr Chandresh Parikh, Chairman and Managing Director, told reporters here today. The company’s products are used in paint, rubber and paper industries, among others.
Import substitute
The company is planning capital expenditure of Rs 50 crore, including Rs 40 crore from the IPO proceeds, as part of its proposed expansion programme in the existing capacities at Vadadala, Bhuj, Tirunelveli, and Udaipur and also set up a new unit at Daman.
IDBI, one of the promoters, is also investing Rs 10 crore in this project. 20ML would introduce higher value-added technology intensive, import substitute products to increase profitability and also produce finer and pure material having size up to 0.7 microns at the expanded facilities, reports The Hindu Business Line