Platinum Industries' IPO sees 99 times subscription on final day, retail book 51x

The public issue of Platinum Industries has received strong response from investors on February 29, the final day of bidding. The participants across categories picked 95.38 crore equity shares against the IPO size of 96.32 lakh equity shares, resulting into a 98.92 times subscription.

Qualified institutional buyers were at the leading position to boost the subscription numbers, buying 151 times the allotted quota, followed by non-institutional investors who picked 141.82 times the reserved portion, while retail investors bid 50.96 times the part set aside for them.

Incorporated in August 2016, the stabilizers producer launched its maiden public issue on February 27 with the target to raise Rs 235.32 crore at the upper price band.

The IPO comprised of only a fresh issue of 1.37 crore equity shares by the company which incorporated in 2016. The price band for the three-day offer has been fixed at Rs 162-171 per share.

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Maharashtra-based Platinum Industries, which manufactures PVC stabilizers, CPVC additives and lubricants, is going to spend Rs 67.72 crore for setting up subsidiary, Platinum Stabilizers Egypt LLC's manufacturing facility for PVC stabilizers in Egypt. Further, Rs 71.3 crore will be used for setting up another manufacturing facility for PVC stabilizers at Palghar, Maharashtra.

The company will utilise Rs 30 crore for its working capital requirements and keep the remaining funds for general corporate purposes.

Platinum will finalise the basis of allotment of IPO shares by March 1 and its equity shares will be credited to demat accounts of eligible investors by March 4.

The trading in its equity shares will commence on the BSE and NSE with effect from March 5.

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In the grey market, an unofficial platform for trading in IPO shares till the listing, Platinum attracted more than 50 percent premium over the upper price band, the market observers said.

Generally, investors look at the grey market premium to know the possible listing price of any IPO, which may not be 100 percent accurate.

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