IPO Buzz
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Issue Price : Rs.50-55
Issue Open : Sept 8th
Issue Closes : Sept 11th
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20 Microns Limited is Indias largest manufacturer of White minerals with an annual output of over 180000 tons from plants spanning four different regions of India.20 Microns Limited supplies the entire world with
innovative products in the fields of Functional Filler and Extenders. The main fields of application for 20 MICRONSs products can be found, for instance, in Paints, Coatings and Printing Ink , Plastics, Paper, Ceramic,
Rubber, Adhesives and Sealants. 20 MICRONS also manufactures specialised products for the Cosmetics, Cement and Concrete, Household Products, Detergent, Textile industries.
20 Microns Limited is an ISO 9001-2000 certified Company. Companys operations are divided into five geographical regions West, South, North, East and International. Each regional division has its own production,
commercial distribution and technical facilities. 20 Microns Limited available in Chalk, Calcite, Marble and Dolomite. Chalk is formed by shells of NANOFOSSILS. This is fine microcrystalline material. Chalk quarries
are located at Gujarat, India. 20ML marketing and other activities are mainly operating through two major segments in Minerals namely VAD and CandC. The
segments are mainly to have a focus on the specific market. Both the segments have separate marketing teams to take care of the customer’s requirements.
OBJECTS OF THE ISSUE
1. To augment the resources for the current ongoing expansion of its manufacturing capacity at various locations and invest in the sub micron particle sizes required by end market.
2. To enable listing the Equity Shares of Company on the Stock Exchanges.
3. General corporate purposes.
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| VALUATION |
20 Microns LTD HAS POSTED A TURNOVER OF 107.41CR & A NET PROFIT OF 4.45 CR FOR THE YEAR FY08 E.P.S OF 1.57RS.AT THE PRICE BAND OF 50-55 THE ISSUE IS COMMANDING A P.E OF 15.2
-16.7.Though there are no strictly comparable companies, one can refer to the valuations of English India Clay and Ashapura Minechem for assessing the kind of P/E 20 Microns can command. Currently, English India Clay is trading at P/E of 16 and Ashapura Minechem is trading at P/E of 7.AVOID.
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CHEMCEL BIOTECH LTD
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AVOID
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Issue Price : Rs.16
Issue Open : Sept 9th
Issue Closes : Sept 12th
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Chemcel Biotech Limited is in the business of manufacturing of Agro Chemicals. Companys main products are in three forms i.e. liquids, granules and dusts. Chemcel Biotech has CIB registrations for 34 products to
manufacture pesticides for crops i.e. Paddy, Cotton, Sugarcane, Turmeric, Chillies, Pulses, Vegetable etc.
They have 34 products in their product portfolio which consists of different kind of insecticides. Chemcel Biotech manufacture various formulations comprising of liquids, granules and powder formulations. Companys products are available in various sizes of packaging catering to the needs of small, marginal and large farmers. Compants product range covers most of the crops and majority of plant infections. They provide end to end plant protection solutions to farmers through their distributors.
They have certificate of registrations for 34 formulations. Companys largest selling formulations are CHEMCEL HEXA; COUNTER; COSY; CELPHATE. Company has set up production unit at Kanuru, Vijayawada, Andhra Pradesh for production of a wide range of pesticides. which is very close to rice belts of Krishna and Godavari districts, and commercial belts of Guntur and Khammam.
Companys main products are in three forms viz. Liquids, granules and dusts.
OBJECTS OF THE ISSUE
1. To set up Bio-Diesel manufacturing unit.
2. To meet the additional Working Capital requirement on account of increased operations for the Agrochemical and Bio Fertilizer division.
3. To repay short term loan of Rs 120.00 Lakhs availed from Union Bank of India for meeting the project expenses.
4. To partially repay the working capital loan facility availed from Union Bank of India
5. To meet the public issue expenses
6. To achieve the benefits of listing our Companys shares on Bombay Stock Exchange Limited.
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| VALUATION |
CHEMCEL BIOTECH LTD HAS NOT POSTED ANY ANNUAL RESULTS FOR FY08.WHEREAS THE FY07 FIGURE GIVE AN E.P.S OF .36 PAISA ONLY.TAKING THIS INTO CONSIDERATION IS ISSUE IS PRICE AT 16 WHICH MEANS THAT P.E WOULD WORKS OUT TO BE 45 TIMES WHICH IS HUGE DEMAND.AVOID.
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| DISCLAIMER: The recommendations made herein do not constitute an offer to sell or a solicitation to buy any of the securities mentioned. No representations can be made that the recommendations contained herein will be profitable or that they will not result in losses. Readers using the information contained herein are solely responsible for their actions. Information is obtained from sources deemed to be reliable but is not guaranteed as to accuracy and completeness. The above recommendations are based on the theory of Technical Analysis and do not reflect the fundamental validity of the Scrip. |
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