PR No.197/2008
Public Issue of 20 Microns Ltd. - Status of Applications Supported by Blocked Amount (ASBA)
ASBA, the new mode of payment for retail individual investors, was first used in the public issue of 20 Microns Limited, which opened on September 8, 2008 and closed on September 11, 2008.
The issue size of 20 Microns Limited was Rs.23.93 crores. The issue was oversubscribed 4 times overall, with the retail category being oversubscribed 11.13 times. Out of the total subscription money of Rs.78.65 crores received in the retail category, allotment was made to the extent of Rs.8.75 crores, while the refundable money amounted to Rs.69.90 crores (i.e., approx. 89% of the total subscription money received). The amount refundable to ASBA investors was Rs.5.05 crores, which, in accordance with the ASBA process, did not move out of the bank accounts of ASBA investors at any point of time.
At the time of receipt of application, the bank accounts of Non-ASBA investors were debited to the extent of 100% of the application money. However, in case of ASBA investors, there was no such debit to the bank accounts, as the bank accounts were only blocked to the extent of 100% of the application money. Consequently, after finalisation of the basis of allotment, only 11% of the application money was released by the bank for the purpose of allotment. The balance 89% remained in the bank accounts of ASBA investors, which were unblocked on September 26, 2008.
Mumbai
September 29, 2008