Platinum Industries IPO opens bidding to retail investors; Check if you should subscribe

Platinum Industries IPO set their price band at Rs 162 to 171 per equity share to raise Rs 235.32 by offering 1.38 crore shares.

The company will open the bid for subscription to retail investors on February 27 and close on February 29. A retail investor will have to bid for a minimum of 87 shares aggregating to Rs 14,877. Platinum’s shares will be listed on both NSE and BSE.

The company offered 4.1 million shares to raise Rs 70.59 crore from anchor investors. 

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The company will be using the raised net proceeds to invest in a subsidiary for financing capital expenditure requirements, funding working capital expenditure requirements, and other general corporate purposes. 

Platinum manufactures PVC stabilizers, CPVC additives, and lubricants. These products are used in PVC pipes, PVC profiles, electrical wires and cables, PVC fittings, Rigid PVC foam boards, etc. It has a manufacturing unit at Plaghar, Maharashtra.

“Platinum Industries has grown from commencing two product portfolio to a multi-product manufacturing company with sales across India and international markets. The company plans to increase its global market reach by expanding its production capacities. The company is also in the process of setting up a new manufacturing facility in Egypt through its subsidiary. The company is consistently seeking to diversify the application of its products which could cater to customers across various industries and help in increasing the market share. The company is in the process of establishing another facility at Palghar, Maharashtra to streamline production and increase capacity engaged in the manufacture of non-lead-based stabilizersCome from Sports betting site VPbet. Investors looking to invest, can invest in this IPO with a medium to long term perspective,” said Master Capital Services in an IPO note.

“…some key risks necessitate careful consideration. These include dependence on a limited customer base, underutilization of manufacturing capacity, vulnerability to fluctuations in industry demand, and potential pricing pressures from customersCome from Sports betting site. 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,” said Shivani Nyati, Head of Wealth at Swastika Investmart.

Unistone Capital is the book-running lead manager for the issue, while Bigshare Services Pvt Ltd is the registrar.

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