Platinum Industries IPO: Bidding To Close Day, GMP Reaches 55%; Subscribe?

Producing a variety of products, Platinum Industries Limited is a manufacturer of stabilisers. The company makes PVC stabilisers, lubricants, and CPVC additives. PVC fittings, PVC profiles, SPC floor tiles, rigid PVC foam boards, electrical lines and cables, packaging materials, and other items are among the uses for the company's products. The main-board initial public offering (IPO) that Platinum Industries planned to use for raising funds started accepting subscriptions on February 27, 2024, and will end today, February 29, 2024.

Platinum Industries IPO Details

The Platinum Industries IPO is a book-built offering of Rs 235.32 crore. 1.38 crore shares are being issued fully fresh in this offering. The subscription period for Platinum Industries' initial public offering (IPO) began on February 27, 2024, and it ends on February 29, 2024. The offering price for Platinum Industries' IPO is Rs 162 to Rs 171 per share. In the public offering, Platinum Industries IPO has set aside a maximum of 20% of the shares for Qualified Institutional Buyers (QIB), a maximum of 15% for Non Institutional Investors (NII), and a maximum of 35% for Retail Investors. Since 87 shares are the minimum lot size for an application, retail investors must invest a minimum of Rs 14,877.

For bNII, it is 68 lots with 5,916 shares totalling Rs 1,011,636; for sNII, it is 14 lots with 1,218 shares totalling Rs 208,278 required for subscription. Bigshare Services Pvt Ltd is the registrar for the Platinum Industries IPO, while Unistone Capital Pvt Ltd is the book-running lead manager. On Friday, March 1, 2024, the allocation of shares for the Platinum Industries IPO is anticipated to be completed. The anticipated listing date for Platinum Industries' initial public offering (IPO) is Tuesday, March 5, 2024, on the BSE and NSE.

Platinum Industries IPO GMP

As of 06:03 AM on February 29, 2024, Platinum Industries' latest GMP was Rs 95, according to the grey market. The projected listing price for the Platinum Industries IPO is Rs 266 (upper price band + today's GMP), featuring an upper-end price band of Rs 171.00. Hence the expected listing premium of Platinum Industries IPO is 55.56% over and above the issue price on the listing date.

Platinum Industries IPO Subscription Status

On Wednesday, Platinum Industries IPO received 22.35 subscriptions on its second day of bidding. By February 28, 2024, the public issue had received subscriptions 25.76 times in the retail category, 0.90 times in the QIB category, and 42.97 times in the NII category. Based on information available on stock markets, the offering got bids of 21,52,55,487 shares against the 96,32,988 equity shares issued at a price range of Rs 162-171. The public issue closes the subscription window on February 29, 2024 for bidding.

Platinum Industries IPO Review

"Platinum Industries, a multi-product player in the high barrier-to-entry specialty chemicals sector. Its unwavering focus on R&D and sustainability, coupled with a varied product portfolio catering to multiple industries, positions the company for continued success. Platinum Industries has demonstrated consistent financial performance, reflected in steady top-line and bottom-line growth. However, some key risks necessitate careful consideration," said the brokerage firm Swastika Investmart Ltd.

"These include dependence on a limited customer base, underutilization of manufacturing capacity, vulnerability to fluctuations in industry demand, and potential pricing pressures from customers. Despite these risks, the IPO valuation appears reasonable at a P/E of 18.15x. Given the company's strengths, growth potential, and fair valuation, we recommend a subscriber rating for this IPO," the brokerage further stated.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.