Platinum Industries’ stock debuted on March 5 at a 35 percent premium over its IPO price, opening at Rs 225 on the NSE compared to the issue price of Rs 171. This initial listing fell short of the earlier estimated grey market premium of 50 percent.
Before the listing, the shares were trading in the grey market at a premium of 50 percent.
During the IPO period from February 27 to 29, the Rs 235.32 crore IPO issue was oversubscribed 99.03 times. Qualified institutional buyers subscribed 151 times the allotted quota, non-institutional investors subscribed 141.83 times, and retail investors subscribed 50.99 times the quota.
The IPO issue comprised a fresh issue of 1.37 crore shares by the company at a price band of Rs 162-171 per share. Platinum Industries specializes in manufacturing PVC stabilizers, CPVC additives, and lubricants.
The company plans to allocate Rs 67.72 crore to establish a manufacturing facility for PVC stabilizers for its subsidiary, Platinum Stabilizers Egypt LLC. Additionally, Rs 71.26 crore will be used for setting up another manufacturing facility for PVC stabilizers in Palghar, Maharashtra. An additional Rs 30 crore will be dedicated to meeting working capital requirements.
Unistone Capital Pvt Ltd is the book-running lead manager of the IPO, while Bigshare Services Pvt Ltd is the registrar for the issue. In FY2023, the company reported a revenue of Rs 234 crore, up 24.5 percent from FY2022, while net profit for the same period grew to Rs 37.5 crore from Rs 17.8 crore in FY2022.
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