Mumbai-based stabilizer manufacturer Platinum Industries Ltd has set a price band of ₹162-171 per share for its ₹235 crore initial public offering (IPO). The issue will open for subscription on February 27 and close on February 29.
The IPO is an all-fresh share sale of 1.37 crore shares with no offer-sale component.
The company also undertook a pre-IPO placement of ₹9,10,700 equity shares at an issue price of ₹157 each amounting to ₹14.3 crores. Meanwhile, the IPO anchor book will open a day before the IPO, on February 26.
Incorporated in August 2016, Platinum Industries operates in the specialty chemicals industry. The company produces PVC stabilizers, CPVC additives and lubricants. The company’s products are used in PVC pipes, PVC profiles, PVC appliances, electrical wires and cables, SPC floor tiles, Rigid PVC foam boards, packaging materials and more. The company has no listed associates who exclusively undertake the manufacture of PVC stabilizers and CPVC additives.
Proceeds from the issue will be used to invest in its arm Platinum Stabilizers Egypt LLC to finance its capital expenditure requirements in relation to the establishment of a production facility for PVC Stabilizers at SC Zone in Egypt. The company will also use funding from capital expenditure requirements of the company towards setting up a manufacturing facility for PVC Stabilizers at Palghar and other working capital requirements.
Platinum Industries has reserved 50 percent of the net offer for qualified institutional investors (QIBs), while non-institutional investors (NIIs) will have 15 percent of shares reserved for them. Retail investors will have 35 percent of the net issue reserved for them.
The minimum lot size for an application is 87 Shares. Investors can bid for a minimum of 87 shares and in multiples of them. The minimum amount of investment required from retail investors is ₹14,877.
In FY23, the company’s net profit increased 112 percent year-on-year (YoY) to ₹37.5 crores. Meanwhile, its total revenue increased 23 percent YoY to ₹232 crores. For the six months ended September 2023, total revenue stood at ₹123.7 crore and profit was at ₹22.8 crores.
Unistone Capital is the book-running lead manager for the IPO while Bigshare Services is the registrar.
The allocation will be on February 29 and repayments will be on March 4. The company’s shares will be listed on the exchanges on March 5.
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Published: 22 Feb 2024, 13:06 IST