Platinum Industries shares list at nearly 32% premium to IPO price

Shares of Platinum Industries Ltd started their trading journey on a strong note, listing at a premium of nearly 32% on Tuesday, March 5.

The Platinum Industries stock opened at ₹225 apiece on the National Stock Exchange of India (NSE), which was 31.6% higher than its initial public offering (IPO) price of ₹171 per share. On BSE, the stock opened the session 33.3% higher at ₹228 per share.

Soon thereafter, the stock rallied further to touch an intra-day high of ₹236.25 on NSE and ₹237 on BSE, but could not hold its gains and slipped from those levels.

By 10:14 am, Platinum Industries shares were trading in the negative at ₹223 on both NSE and BSE, down 0.9% from their opening price of ₹225.

To recall, the price band of the Platinum Industries IPO was fixed at ₹162-171 per share, with a lot size of 87 shares.

After Tuesday’s listing, retail investors who were successfully allotted at least 1 lot of shares would be sitting on a profit of ₹4,698 (₹54 x 87) as soon as trading began in the shares of Platinum Industries.

Notably, the ₹235-crore Platinum Industries IPO was oversubscribed by 99 times during the three-day bidding between February 27 and February 29.

The public offer had received total bids for 95.35 crore shares compared with 96.33 lakh shares available for subscription to investors (net of anchor portion), according to the NSE data.

The qualified institutional buyers’ (QIB) portion was oversubscribed by 151 times, while the non-institutional investors’ (NII) portion was booked by 142 times. The quota for retail investors was overbid by 40.5 times.

Platinum Industries had earlier said that it planned to use the net proceeds from the IPO for investment in its subsidiary Platinum Stabilisers Egypt Llc to fund its capex requirements.

The company will also utilise a portion of the IPO proceeds for capital expenditure requirements towards setting up of a manufacturing facility for PVC stabilisers at Palghar, Maharashtra.

Platinum Industries had already raised ₹14.3 crore in a pre-IPO placement round, in which it had allotted 9.1 lakh shares at a price of ₹157 per unit. The company had also raised ₹70.59 crore from anchor investors ahead of the opening of the subscription for public investors.

Incorporated in 2016, Platinum Industries is a leading PVC and CPVC additives manufacturer in India.

The company manufactures a range of products including lead-free stabiliser for PVC, hybrid low lead PVC stabiliser, Highstab PVC stabiliser (calcium organic stabilisers, calcium zinc stabilisers), one pack stabilisers for PVC pipe, CPVC additives, and lubricants. The company also provides customized products and solutions to its customers. Its major clientele includes pipe manufacturers in India.