Platinum Industries witnessed its stock debut on March 5th, listing at a 35 percent premium over the IPO price, slightly below the earlier Grey Market Premium (GMP) estimates of 50 percent. The stock commenced trading at Rs 225 on the NSE, surpassing the issue price of Rs 171.
Prior to its listing, the company’s shares were trading at a 50 percent premium in the grey market.
During the IPO subscription period from February 27th to 29th, the Rs 235.32 crore IPO issue garnered immense interest, being oversubscribed 99.03 times. Qualified institutional buyers subscribed 151 times the allotted quota, while non-institutional investors subscribed 141.83 times, and retail investors subscribed 50.99 times. The IPO issue consisted of a fresh issue of 1.37 crore shares by the company at a price range of Rs 162-171 per share. Platinum Industries specializes in manufacturing PVC stabilizers, CPVC additives, and lubricants.
The company has outlined plans to utilize Rs 67.72 crore for establishing a manufacturing facility for PVC stabilizers for its subsidiary, Platinum Stabilizers Egypt LLC. Additionally, Rs 71.26 crore will be allocated towards setting up another manufacturing facility for PVC stabilizers in Palghar, Maharashtra, with an extra Rs 30 crore earmarked for meeting working capital requirements.
Unistone Capital Pvt Ltd acted as the book-running lead manager for the IPO, while Bigshare Services Pvt Ltd served as the registrar for the issue. In FY2023, Platinum Industries reported a revenue of Rs 234 crore, marking a 24.5 percent increase from FY2022, while net profit for the same period surged to Rs 37.5 crore from Rs 17.8 crore in FY2022.
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