Platinum Industries IPO Sees Robust Demand, Subscribed 13.35 Times on Day 2

The ongoing initial public offering (IPO) of Platinum Industries has garnered significant attention from investors, with subscription levels reaching 13.35 times on the second day of the bidding process. The Mumbai-based company, specializing in the production of stabilizers, initiated its IPO on February 22, offering shares in the price band of Rs 162-171.

Platinum Industries aims to raise Rs 235.32 crore through the IPO, with the issuance of 1,37,61,225 fresh shares. The response from investors has been robust, with bids for 12,85,76,691 equity shares received by 12:30 pm on Wednesday, February 28. The bidding process is scheduled to conclude on Thursday, February 29.

As of the current data, the allocation for retail investors has been subscribed 16.82 times, while non-institutional investors have shown strong interest, with a subscription of 22.90 times. The qualified institutional bidders (QIBs) portion has received bids for 10 per cent as of the same time.

Analysts have expressed optimism about Platinum Industries, highlighting its strong growth potential, expansion into global markets, reasonable valuations, and a sound track record. Despite certain risks such as dependence on a limited customer base and fluctuations in industry demand, the overall sentiment towards the IPO remains positive.

The grey market premium for Platinum Industries has surged after day one’s response, commanding a premium of Rs 98-100 in the unofficial market, indicating a potential listing pop of more than 58 per cent for investors.

The IPO received a significant boost ahead of its launch, as Platinum Industries raised Rs 70.6 crore from seven anchor investors, allocating them 41,28,237 shares at Rs 171 apiece. The offer is structured with 50 per cent allocated to qualified institutional bidders (QIBs), 15 per cent to non-institutional investors, and the remaining 35 per cent to retail investors.

Platinum Industries’ listing is anticipated at both BSE and NSE on March 5, Tuesday.

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