The share price of this micro-cap company engaged in the business of production of industrial minerals jumped 11.5 percent to an intraday high of Rs.233.55 per share after the announcement of acquisition of two Limestone quarries in Malaysia.
On Friday, 20 Microns Ltd. shares closed at Rs 217 apiece,up 3.87% from the previous close price.The company has a market capitalization of Rs 766 crores.
What is the news:
20 Microns Ltd has announced that its subsidiary, 20 Microns SDN BHD in Malaysia, has entered into share purchase agreements to acquire 100% equity shares of Goh Teik Lim Quarry SDN BHD and IQ Marbles SDN BHD for a total consideration not exceeding RM 15,100,000 (approximately Rs 27 crore).According to the exchange filings.
The acquisition will be completed tentatively in 30 days and will be facilitated through banking channels, as per filings. The entities which are to be acquired are in the same line of business of extraction and processing of high purity limestone as of 20 Microns.
The turnover of Goh Teik Lim Quarry SDN BHD is approximately Rs.87,31,777 and the profit after tax is nearly Rs.59,74,784 as of FY2023. IQ Marbles SDN BHD possesses land owned near to the location of GTLQ’s quarry.
Objective of acquisition:
From this acquisition 20 Microns will secure an access to high-quality limestone reserves in Malaysia,This acquisition will enable 20 Microns Limited to access superior reserves, facilitating overall expansion.
Shareholding pattern:
The promoters of 20 Microns Ltd hold 44.95 percent of shareholding, Foreign Institutional Investor’s hold 0.78 percent, Domestic Institutional Investor’s hold 0.06 percent and the public has a major holding of 54.21 percent.
Financials:
The stock of 20 Microns has given a return of nearly 514 percent in the past five years.
The revenue of 20 Microns has increased 22.5 percent from Rs.173 crores in Q4 FY23 to Rs.212 crores in Q4 FY 24.Similarly,during the same time frame net profit has increased from Rs 9.31 crores to Rs.13.66 crores.
About the company:
20 Microns Ltd is in the business of industrial micronised minerals and speciality chemicals. Company employs control instruments to produce industrial minerals, paint additives, quartz, fillers for paint and ceramics.
Company has 9 manufacturing facilities with an operating capacity of 4.50 lakh MTPA (Million Ton Per Annum). It also has 7 mining reserves of 169.64 lakh million tonnes.
Written by – Siddesh S Raskar
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