Platinum Rush : Retail and NII Investors make hurry, Issue subscribed 8.06 times on Day 1
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The Initial Public Offering of Platinum Industries Limited was subscribed 8.05 times on the first day of bidding.
The issue received bids of 7,75,29,006 shares against the offered 96,32,988 equity shares, at a price band of ?162-171, according to the data available on the stock exchanges.
Non-Institutional Investors Portion with 13.59 times, Retail Portion was subscribed with 10.23 times, whereas Qualified Institutional Buyer Portion subscribed 0.07 times. The issue kicked off for subscription on Tuesday, February 27, 2024 and will close on Thursday, February 29, 2024.
A day prior to the opening of the issue, Platinum Industries Ltd had raised Rs 70.59 crores from anchor investors. Foreign and Domestic Institutions who participated in the anchor were Baring Private Equity India AIF 2, Elara India Opportunities Fund, Saint Capital Fund, Antara India Evergreen Fund Ltd, Nav Capital VCC - NAV Capital Emerging Star Fund, Astorne Capital VCC Arven, Leading Light Fund VCC - The Triumph Fund.
Leading brokerage firms like Ventura Securities, BP Wealth, AnandRathi and Hensex have given a “Subscribe” rating to Platinum Industries Ltd, given its varied and specialized product portfolio catering to diversified industries, in-house R&D capabilities and consistent financial performance. They are the third largest player of PVC stabilizer in terms of sales with an ~13.00% market share for the financial year 2022-23 in the domestic market.
Platinum is also expanding its global market reach by establishing a new manufacturing facility in Egypt and trying to increase its market share both in its domestic and global markets.
Dependence of revenue from few customers, lack of long-term arrangements and an inability to effectively utilize their expanded manufacturing capacities are pointed out as key risks of the company by the brokers.
Unistone Capital Private Limited is the sole book running lead manager and Bigshare Services Private Limited is the registrar of the offer. The equity shares are proposed to be listed on the BSE and NSE.
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