Platinum Industries IPO opens on February 27, issue size may be Rs 216 crore at pre-IPO placement price

Mumbai-based stabilizers manufacturer Platinum Industries is set to hit Dalal Street on February 27, with a likely issue size of Rs 216.05 crore. The price band is expected to be announced in next couple of days.

The issue will close for subscription on February 29, while the anchor book of IPO will be opened for a day on February 26.

The company is planning to raise funds via IPO of 1,37,61,225 equity shares which comprises only a fresh issue component with no offer-for-sale component.

If one considers the issue price at Rs 157 per share, at which the company raised Rs 14.3 crore in a pre-IPO placement on January 14 this year, the total IPO size will be Rs 216.05 crore.

Platinum Industries has allotted a pre-IPO placement of 9,10,700 equity shares through a private placement at an issue price of Rs 157 per share. Accordingly, the size of the issue has been reduced by 9,10,700 equity shares.

The company allotted above 9.1 lakh equity shares to 39 investors including Vaibhavi Sanghvi, Nirag Ventures LLP, Rashmika Developers LLP, Crest Partners LLP, and Saint Capital Fund.

Platinum will spend Rs 67.72 crore for setting up subsidiary Platinum Stabilizers Egypt LLC's manufacturing facility for PVC stabilizers at Governorate of Suez, Egypt, and Rs 71.26 crore for setting up of a manufacturing facility for PVC stabilizers at Palghar, Maharashtra.

Further, Rs 30 crore will be used for working capital requirements, and the remaining for general corporate purposes.

Platinum, which operates in the speciality chemicals industry, manufactures PVC stabilizers, CPVC additives and lubricants, which are used in PVC pipes, PVC profiles, PVC fittings, electrical wires and cables, SPC floor tiles, Rigid PVC foam boards, and packaging materials.

It does not have listed peers that exclusively undertakes the manufacturing of PVC stabilizers and CPVC additives.

Promoters hold 94.74 percent stake in the company, while public shareholders including Dr. Horst Michael Schiller have 5.26 percent shares.

Unistone Capital is the sole book running lead manager to the issue.