Platinum Industries IPO: Strong Subscription Momentum on Day 2
Platinum Industries IPO continues to gain momentum, witnessing robust subscription figures on the second day of its subscription period. The subscription status on day 2 stands at 13.72 times the offer size, as per BSE data recorded at 12:45 IST.
The overwhelming response from investors, particularly retail and non-institutional investors, has contributed to this surge.
Strong Demand from Retail and Non-Institutional Investors
The IPO garnered significant interest right from the start, as it was fully subscribed within the first hour of its opening. The subscription status on the opening day was 8.06 times, with the retail portion oversubscribed by 10.26 times and the non-institutional investor portion by 13.60 times.
This early momentum has carried forward, with the retail portion now subscribed 17.30 times and the non-institutional investor's portion at 23.52 times on day 2.
Subscription Period and Anchor Investment
Platinum Industries IPO opened for bidding on Tuesday, February 27, and is set to close on Thursday, February 29. Before the IPO opening, the company raised Rs. 70.59 crore from anchor investors on Monday, February 26, setting a positive tone for the public offering.
Price Band and Lot Size
The IPO price band is set in the range of Rs.162 to Rs.171 per equity share, with a lot size of 87 equity shares and multiples thereof. This pricing structure aims to make the offering accessible to a wide range of investors while reflecting the company's valuation and growth prospects.
Business Overview of Platinum Industries
Platinum Industries operates as a multi-product firm in the stabilizer manufacturing sector, specializing in lubricants, CPVC additives, and PVC stabilizers. Its products cater to various industries, including PVC fittings, electrical lines, packaging materials, and more. The company's diverse product portfolio positions it strategically in the market for specialty chemicals, offering potential for future growth and expansion.
Utilization of Proceeds
The net proceeds from the IPO will be utilized for several purposes, including investments in subsidiaries, financing working capital needs, funding capital expenditures for manufacturing facilities, and general corporate purposes. These strategic allocations aim to support the company's growth initiatives and enhance its operational capabilities.
Key Entities and Grey Market Premium
Bigshare Services Pvt Ltd is appointed as the registrar for the Platinum Industries IPO, with Unistone Capital Pvt Ltd assuming the role of the book-running lead manager. Presently, the grey market premium (GMP) for the Platinum Industries IPO stands at +100, illustrating investors' readiness to pay more than the issue price.
This premium reflects optimistic market sentiment and anticipations regarding the company's prospective performance.
Expected Listing Price
Considering the upper end of the IPO price band and the current premium in the grey market, the expected listing price for the Platinum Industries IPO is indicated at Rs. 271 apiece. This represents a significant increase of 58.48% over the IPO price of Rs. 171, highlighting investor optimism and confidence in the company's prospects.
Read also: Exicom Tele-Systems IPO: Oversubscribed 13.15 Times, Closing Tomorrow
As the subscription period progresses, the Platinum Industries IPO continues to attract investor interest, reflecting the growing demand for quality investment opportunities in the market.
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