Platinum Industries lists at 33% premium at Rs 228 per share

Platinum Industries Limited, engaged in the production of stabilizers, specifically PVC stabilizers, CPVC additives, and lubricants, debuted on the Indian stock market today.

The company’s stock opened at Rs 228 per share on the BSE, reflecting a substantial 33.33% premium over the final issue price of Rs 171 per share. The market capitalisation on the BSE is now Rs 1252.29 crore. Conversely, on the NSE, the stock debuted at Rs 225 per share with a premium of 31.58%.

IPO Proceeds

The company intends to utilise the Net Proceeds from the Issue for specific purposes, including investing in its subsidiary, Platinum Stabilizers Egypt LLC (“PSEL”), to finance the establishment of a manufacturing facility for PVC Stabilizers in SC Zone, Governorate of Suez, Egypt. Additionally, the funds will be allocated towards the capital expenditure requirements for setting up a PVC Stabilizers manufacturing facility in Palghar, Maharashtra, India. Furthermore, a portion of the proceeds will be directed to meet the working capital requirements of the company, along with addressing general corporate purposes.

Company profile

Platinum Industries Limited, incorporated in August 2016, engaged in the production of stabilizers, specifically PVC stabilizers, CPVC additives, and lubricants. The company’s manufacturing facility is located in Palghar, Maharashtra. Their range of products finds application in various industries, including PVC pipes, profiles, fittings, electrical wires and cables, SPC floor tiles, Rigid PVC foam boards, packaging materials, and more. With a nationwide presence, the company operates through twelve distribution centers across India.

Subscription details

On February 29, 2024, the final day of the IPO window, the IPO witnessed an impressive response, with a subscription rate of 98.99 times. The public issue received remarkable interest, with the retail category being subscribed 50.92 times, while the QIB and NII category reached a subscription rate of 151 and 141.79 times respectively.

The IPO price band was between Rs 162 and Rs 171 per share, with a face value of Rs 10 per share and a lot size of 87 shares. The total size of the company’s IPO was Rs 235.32 crore, and the final share issue price was fixed at Rs 171 each.

Conclusion

The crucial question that arises in everyone’s mind is whether to hold onto the shares or book profits. Investors who applied for listing gains only have already earned 33.33% on the listing day itself and can choose to book the profit it has generated. On the other hand, investors with a higher risk appetite may opt to hold the shares for the medium to long term, which could be beneficial.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.