 "IPO, Investment")
Platinum Industries made a healthy stock market debut on Tuesday with its shares listing at Rs 228 on BSE, a premium of 33 per cent over the issue price of Rs 171. The stock of the specialty chemicals company listed at Rs 225 on the NSE.
Post listing, it hit a high of Rs 237 and a low of Rs 219 in intra-day trade. At 10:14 am; it was trading at Rs 221.20, up 29 per cent over its issue price.
A combined 4.3 million equity shares changed hands on the NSE and BSE. In comparison, the S&P BSE Sensex was down 0.5 per cent at 73,518.
The IPO received a bumper subscription of 99 times. The issue saw heavy demand from the qualified institutional buyers (151 times) and non-institutional investors (141.79 times). Retail investor’s portion was subscribed 50.92 times.
Net proceeds will be utilised for investment in Platinum Stabilizers Egypt, financing capex requirements, working capital and general corporate purposes.
Operating within the specialty chemicals sector, Platinum Industries is a multi-product organization involved in the manufacturing of stabilizers.
More From This Section
Its product portfolio encompasses PVC stabilizers, CPVC additives, and lubricants. These products cater to various applications such as PVC pipes, profiles, fittings, electrical wires, cables, SPC floor tiles, rigid PVC foam boards, packaging materials and more.
The business model is aimed at consistently expanding its product portfolio by introducing new products to cater to multiple end-use applications.
With a strict focus on product quality and good track record in the distributor network, the company has established a brand image, which helps it to penetrate new product categories. The company is expanding its domestic venture and establishing a new project in Egypt.
India is the world's sixth-largest chemical manufacturer and was valued at $252 billion in fiscal 2023 and is expected to grow to $349 billion by 2027.
Specialty chemicals are low-volume, high-value chemicals with specific applications classified based on end-user industries.
This industry globally is expected to post a 7-9 per cent CAGR over 2022-26 owing to rising demand from end user industries, along with tight global supply on account of stringent environmental norms in China.
The Indian specialty chemical industry is expected to reach $48.1 billion by fiscal 2026, growing at a 8.3 per cent CAGR over 2023-26.
"As the specialty chemicals industry presents significant entry barriers, including customer validation and approvals, high-quality standards and stringent specifications, as well as various client and regulatory approvals that are required to be obtained, the sector is expected to provide promising opportunities to the company in the coming period," said BP Equities.
It adds that the company’s varied portfolio, new product development systems with the help of an effective R&D team, high entry barriers in the operating segment, and plans for global expansion will help it to take advantage of the opportunities in the coming period.
