The Platinum Industries initial public offering (IPO), valued at approximately Rs 235.32 crores, encompasses fresh shares amounting to 1.38 crore, with the subscription period commencing on February 27, 2024, and concluding on February 29, 2024.
Continuing its upward trajectory, the Platinum Industries IPO witnessed robust demand on its second day of bidding, with the subscription reaching an impressive 22.22 times the offered shares.
According to data available on the stock exchanges, the issue garnered bids for 21,40,84,467 shares against the 96,32,988 equity shares on offer, with a price range spanning from Rs 162 to Rs 171.
A detailed breakdown of the subscription figures revealed that the Non-Institutional Investors Portion experienced oversubscription by 42.88 times, while the Retail Portion witnessed a subscription of 25.56 times. However, the Qualified Institutional Buyer Portion saw a relatively lower subscription of 0.90 times.
The IPO subscription, which commenced on Tuesday, February 27, 2024, is slated to conclude on Thursday, February 29, 2024.
Preceding the IPO launch, Platinum Industries Ltd successfully secured Rs 70.59 crore from anchor investors.
As of the latest update on February 28th, 2024, at 08:00 PM, the Grey Market Premium (GMP) for Platinum Industries IPO stands at Rs 91. Considering the IPO's price band set at Rs 171.00, the anticipated listing price for Platinum Industries IPO is calculated to be Rs 262 (the upper price limit of the band plus today's GMP), suggesting an expected percentage gain of 53.22 percent per share upon listing.
Key participants in the IPO included both Foreign and Domestic Institutions, with notable names like Baring Private Equity India AIF 2, Elara India Opportunities Fund, and Saint Capital Fund, among others.
Renowned brokerage firms such as Ventura Securities, BP Wealth, AnandRathi, and Hensex have all assigned a "Subscribe" rating to Platinum Industries Ltd. This recommendation is based on the company's diverse product portfolio catering to various industries, its robust in-house research and development capabilities, and its consistent financial performance. Platinum Industries holds approximately 13.00 percent market share for the financial year 2022-23, positioning it as the third-largest player in PVC stabilizers domestically.
However, brokers have highlighted certain risks associated with the company, including its dependency on a few customers for revenue, the absence of long-term arrangements, and challenges in effectively utilizing its expanded manufacturing capacities.
Unistone Capital Private Limited is serving as the sole book-running lead manager for the IPO, while Bigshare Services Private Limited is appointed as the registrar of the offer.
Platinum Industries operates within the specialty chemicals sector, primarily focusing on the manufacturing of stabilizers such as PVC stabilizers, CPVC additives, and lubricants. Its wide-ranging product portfolio finds applications across various industries, including PVC pipes, electrical wires, and packaging materials, among others.
