20 Microns IPO Note

September 2, 2008

Price Band: Rs. 50 - 55 per share
Issue open between: September 8 - September 11, 2008
Book Running Lead Managers: Keynote Corporate Services Ltd.
To List on: NSE and BSE
Market Cap post-listing: Rs. 78 Cr. or $18 million (based on the cap price)

Executive Summary

- Incorporated in 1987, 20 Microns Ltd. (20ML) is a leading producer of micronised minerals in India. It produces various industrial minerals such as Cacium Carbonate, China Clay (Kaolin), Talc, Dolomite, Silica, Mica and Barytes.

- These minerals are used in various industries which comprises of paints, plastics, paper, glass and ceramics.

- India is endowed with huge deposits of industrial minerals including limestone, clay, talc, dolomite, barytes, mica, etc. It has a globally strong position in the production of these minerals. For instance in barytes production, India ranks 2nd, while in talc and mica production it ranks 4th and 10th respectively.

- Demand from user industries (viz. paint, paper, plastics, ceramics, etc.) is driven primarily by economic growth and rising per capita income levels over the last 4-5 years. This has led to increased opportunities for the industrial minerals industry.

- 20ML has a robust track record in the white minerals industry. Commencing operations with a small capacity of just 2,400 tonnes per annum (tpa), it has scaled up over the last 2 decades to reach a size of 96,400 tonnes per annum in FY08. It is one of the only two producers of China Clay in Asia, second only to English Indian Clays Ltd.

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