Platinum Industries sets Rs 162-171 price band for IPO opening on Feb 27

Construction and telecom were the other two sectors on FIIs sell list. They net sold Rs 4251 crore of construction shares and Rs 3766 crore of telecom shares.

Mumbai-based stabiliser manufacturer Platinum Industries Ltd has set a price band of Rs 162-171 a share for its initial public offering that will open for subscription on February 27.

The issue will close for subscription on February 29, while the anchor book of the IPO will open for a day on February 26. The allotment will be on February 29 and refunds will be on March 4. The shares of the company will be listed on the exchanges on March 5.

On the upper band, the fresh issue size will be around Rs 235 crore and after listing, the market capitalisation of the company will be Rs 704 crore.

Proceeds from the issue will be used to invest in its arm Platinum Stabilizers Egypt LLC for financing its capital expenditure requirements in relation to the setting up of a manufacturing facility for PVC Stabilizers at SC Zone in Egypt. The firm will also use funding of capital expenditure requirements of the company towards setting up of a manufacturing facility for PVC Stabilizers at Palghar and other working capital requirements.

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.

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