Platinum Industries shares jump 29% on listing day, close at Rs 221

Platinum Industries shares clocked healthy double-digit gains on March 5, i.e. the listing day, though it was much lower than analysts' expectations as well as grey market premium indication.

The stock started off trade at Rs 225, up 31.6 percent over the issue price of Rs 171, while analysts as well as grey market premium indicated the premium of over 50 percent due to robust IPO subscription numbers.

It remained volatile for major part of the session and closed near day's low, at Rs 221.20 with 29.36 percent gains on the NSE, while on the BSE, it rallied 29.18 percent to Rs 220.90.

The traded volume on the NSE was 54.01 lakh equity shares and 4.07 lakh shares on the BSE.

The PVC stabilizers manufacturer has mobilised Rs 235.32 crore through its maiden public issue of 1.37 crore equity shares, comprising only a fresh issue which was subscribed 99 times during February 27-29.

The price band for the issue was Rs 162-171 per share.

With a wide portfolio of specialty chemicals in the PVC, CPVC, and lubricants segment, Platinum Industries is the third largest player in PVC stabilisers in terms of sales along with a 13 percent share of the domestic market.

The company that caters to several segments like PVC pipes, PVC profiles, PVC fittings, electrical wires and cables, SPC floor tiles, Rigid PVC foam boards, and packaging materials will spend Rs 67.72 crore out of the IPO proceeds for setting up a manufacturing facility for PVC stabilisers by subsidiary Platinum Stabilizers Egypt LLC in Egypt and Rs 71.26 crore for setting up another unit at Palghar, Maharashtra. Further, Rs 30 crore will be spent for working capital requirements of the company, and the balance for general corporate purposes.