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Platinum Rush: Retail and NII Investors make hurry, Issue subscribed 8.06 times on Day 1

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.

Company Information

Platinum Industries, a multi-product company engaged in the business of manufacturing stabilizers, which includes PVC stabilizers, CPVC additives and lubricants, operates in the speciality chemicals industry. Its product range serves various applications in PVC pipes, PVC profiles, PVC fittings, electrical wires and cables, SPC floor tiles, Rigid PVC foam boards, packaging materials, etc.

According to the CRISIL Report mentioned in the RHP, Platinum Industries is 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.

The Company’s has a business model aimed at consistently expanding its product portfolio by introducing new products to cater to multiple end-use applications. With a strong emphasis on product quality and a robust distributor network, the company has established a reputable brand image, facilitating penetration into new product segments.

PVC stabilizers and CPVC additives are chemical substances used in the production of polyvinyl chloride (PVC) and chlorinated polyvinyl chloride (CPVC) based products, respectively. PVC stabilizers enhance the performance and durability of PVC materials, while CPVC additives improve heat and chemical resistance, enabling CPVC to withstand higher temperatures and exposure to various chemicals and corrosive substances. Additionally, lubricants such as PE Wax and Lubpack are integral to PVC formulation, reducing friction between PVC molecules, lowering melt viscosity, and facilitating metal and mold release effects.

The table below shows subscription data for all the categories of investors:

PLATINUM INDUSTRIES LIMITED

Last updated on
27 Feb 2024 | 05:00:00 PM

Sr.No.

Category

No.of shares offered / reserved

No. of shares bid for

No. of times of total meant for the category

1

Qualified Institutional Buyers (QIBs)

27,52,375

1,97,142

0.07

1(a)

Foreign Institutional Investors (FIIs)

1(b)

Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies)

1,218

1(c)

Mutual Funds

1(D)

Others

1,95,924

2

Non Institutional Investors(NIIS)

20,64,184

2,80,53,237

13.59

2.1

Non Institutional Investors(Bid amount of more than Ten Lakh Rupees)

13,76,123

1,42,02,402

10.32

2.1(a)

Corporates

82,998

2.1(b)

Individuals (Other than RIIs)

1,28,99,577

2.1(c)

Others

12,19,827

2.2

Non Institutional Investors(Bid amount of more than Two Lakh Rupees and upto 10 lakh rupees)

6,88,061

1,38,50,835

20.13

2.2(a)

Corporates

33,060

2.2(b)

Individuals (Other than RIIs)

1,25,62,278

2.2(c)

Others

12,55,497

3

Retail Individual Investors (RIIs)

48,16,429

4,92,78,627

10.23

3(a)

Cut Off

4,43,11,362

3(b)

Price Bids

49,67,265

4

Employee Reserved

4(a)

Employee (Cut off)

4(b)

Employee (Price)

5

Reservation Portion Shareholder

5(a)

RPS (Cut off)

5(b)

RPS (Price)

Total

96,32,988

7,75,29,006

8.05

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