Platinum Industries which manufactures PVC stabilizers, CPVC additives and lubricants is set to debut with at least a 50 percent premium over the issue price, on the bourses on March 5, said experts citing the robust demand for the IPO from investors, equity market at record high levels, supportive macro factors, and the first mover advantage.
The Platinum Industries IPO was subscribed 99.03 times during February 27-29, with robust demand from across categories of investors. Qualified institutional buyers picked 151 times the allotted quota, non-institutional investors 141.83 times, and retail investors bought 50.99 times the reserved portion.
The Rs 235.32-crore public issue was comprised of only a fresh issue of 1.37 crore shares by the company, coming out with a price band of Rs 162-171 per share.
"In line with current bullish momentum in the secondary market, and stronger subscription demand saw on the last day of the IPO process, we expect Platinum Industries to debut on similar lines and listing can see 50 percent and above premium to its issue price of Rs 171 apiece," Prashanth Tapse, Senior VP & Research Analyst at Mehta Equities said.
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He believes the premium listing is justified on the back of reasonable valuations followed by a strong foothold in the industry with a diverse range of products catering to various applications.
At the time of filing this article, the equity markets settled the session on March 4 at a record closing high, rising more than 3 percent in the current calendar year.
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Platinum is a unique player in PVC stabilizers and lubricants with multi-products. The company is expanding its domestic venture and also establishing new projects in Egypt. The company recorded a massive 111.8 percent on-year growth in consolidated net profit at Rs 37.6 crore for the year ended March FY23, with revenue rising 23 percent to Rs 231.5 crore.
Amit Goel, Co-Founder and Chief Global Strategist at Pace 360, too, looked bullish on the listing, expecting the listing could be around Rs 260-270 with a gain of around 55 percent, considering its niche place among the segment and its first mover tag.
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The grey market also responded strongly to Platinum Industries IPO as its IPO shares traded at more than 50 percent premium over the upper price band, the market observers said. The grey market is an unofficial platform for trading in the IPO shares till the listing.
Parth Shah, research analyst, StoxBox also feels Platinum Industries is all set to make its debut on the bourses at a premium of around 50 percent over its subscription price.
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Having a wide range product portfolio of speciality chemicals in the PVC, CPVC, and lubricants segment, the company is the third largest player in PVC stabilizers in terms of sales along with a 13 percent market share in the domestic market.
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