Platinum Industries IPO Details
- Issue type: Main-board IPO
- Issue size: ₹235.32 crore
- Fresh issue: ₹235.32 crore (entirely fresh issue)
- Price band: ₹162 – ₹171 per share
- Minimum order quantity: 87 shares
- Issue open date: February 27, 2024
- Issue close date: February 29, 2024
- Expected listing date: March 5, 2024
- BSE Code: 543623
- NSE Code: PLATINI
- Book Running Lead Manager: Unistone Capital Private Limited
- Registrar: Bigshare Services Pvt Ltd
Platinum Industries IPO Timeline
| IPO Open Date: | February 27, 2024 |
| IPO Close Date: | February 29, 2024 |
| Basis of Allotment: | March 01, 2024 |
| Refunds: | March 04, 2024 |
| Credit to Demat Account: | March 04, 2024 |
| IPO Listing Date: | March 05, 2024 |
About
Established in August 2016, Platinum Industries Limited is a specialized company that focuses on the production of stabilizers. Their product range includes PVC stabilizers, CPVC additives, and lubricants. These products find application in various products such as PVC pipes, PVC profiles, electrical wires, SPC floor tiles, Rigid PVC foam boards, and packaging materials. The company’s manufacturing facility, spanning 21,000 sq. ft., is located in Palghar, Maharashtra.
- Manufactures various types of manufacturing stabilizers used in PVC pipes, profiles, footwear, and other applications.
- Has a presence in over 30 countries with a network of over 1,000 distributors and dealers.
- Claims to be the third largest seller of PVC stabilizer in India with an 8% market share in the domestic market (FY 2021-22).
- Reported consistent revenue and profit growth in recent years.
OBJECTIVE
- The parent company is planning to invest in its subsidiary, Platinum Stabilizers Egypt LLC (“PSEL”), to support its capital expenditure needs for establishing a PVC Stabilizers manufacturing facility in the SC Zone within the Governorate of Suez, Egypt.
- Funding of capital expenditure requirements of the company towards setting up of a manufacturing facility for PVC Stabilizers at Palghar, Maharashtra, India
- Funding working capital requirements of our Company; and
- General corporate purposes.
POSITIVE
- Strong financial performance: The company has shown impressive growth in revenue (46%) and profit after tax (66%) from FY2022 to FY2023. This indicates a strong and profitable business.
- Improved financial stability: Net worth has increased significantly (38%) in the past year, demonstrating improved financial stability.
- Reduced borrowing: Total borrowing has decreased slightly, indicating better debt management.
- Established market position: Claims to be the third largest seller of PVC stabilizers in India with an 8% market share, suggesting brand recognition and a strong customer base.
- Global presence: Operates in over 30 countries with a wide network of distributors, offering potential for diversified revenue streams and export growth.
NEGATIVE
- Dependence on a single product: Primarily manufactures PVC stabilizers, which exposes the company to fluctuations in the demand for this specific product and limits diversification.
- Competition: The PVC stabilizer market is highly competitive with established players and potential for new entrants, putting pressure on margins.
- Limited geographical presence: While having a global presence, its domestic market share (8%) suggests room for further expansion in India or other countries.
- Reliance on raw materials: Subject to fluctuations in the prices of raw materials used in production, which could negatively impact profitability.
- Potential for economic slowdown: An economic slowdown could decrease demand for PVC products and construction activities, impacting the company’s sales and profitability.
- Government regulations: Changes in environmental regulations or restrictions on the use of PVC could negatively impact the industry and the company’s operations.
So, how does Platinum Industries IPO Fare in Terms of Financials ?
Financial Details
| Period Ended | 30 Sep 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 137.72 | 121.17 | 84.48 | 32.26 |
| Revenue | 123.73 | 232.56 | 189.24 | 89.53 |
| Profit After Tax | 22.84 | 37.58 | 17.75 | 4.82 |
| Net Worth | 85.04 | 61.88 | 22.34 | 4.47 |
| Reserves and Surplus | 44.86 | 21.80 | 21.28 | 3.53 |
| Total Borrowing | 11.46 | 17.43 | 24.24 | 3.26 |
| Amount in ₹ Crore | ||||
FINANCIAL REVIEW
Positives:
- Revenue growth: Revenue has shown a significant increase of 46% from ₹189.24 crore in FY 2022 to ₹232.56 crore in FY2023, indicating strong business growth.
- Profitability: Profit after tax has also increased by 66% from ₹17.75 crore in FY2022 to ₹29.84 crore in FY2023, suggesting increasing profitability.
- Improving financial stability: Net worth has grown steadily, with a significant increase of 38% from FY2022 to FY2023, demonstrating improved financial stability.
- Reduced borrowing: Total borrowing has decreased slightly, indicating improved debt management.
Platinum Industries IPO Valuation :
| Earning Per Share (EPS): | ₹9.42 per Equity Share |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 61.26% |
| Net Asset Value (NAV): | ₹15.37 per Equity Share |
Platinum Industries IPO – SWOT Analysis
Strengths
- Strong market position: Claims to be the third largest seller of PVC stabilizers in India with an 8% market share, indicating brand recognition and established customer base.
- Global presence: Operates in over 30 countries with a wide network of distributors, suggesting strong export potential and diversified revenue streams.
- Consistent financial performance: Reported consistent growth in revenue and profit in recent years, demonstrating financial stability.
- Experienced management team: Claimed to have an experienced management team with expertise in the industry, which could contribute to future growth.
Weaknesses
- Dependence on a single product: Primarily manufactures PVC stabilizers, which exposes the company to fluctuations in the demand for this specific product.
- High competition: The PVC stabilizer market is highly competitive, with established players and potential for new entrants, putting pressure on margins.
- Limited geographical presence: While having a global presence, its domestic market share (8%) suggests potential for further expansion in India or other countries.
- Reliance on raw materials: Subject to fluctuations in the prices of raw materials used in production, which could impact profitability.
Opportunities
- Growing PVC market: The global PVC market is expected to grow in the coming years, creating opportunities for increased demand for PVC stabilizers.
- Expansion into new markets: Expanding its presence in existing and new international markets could diversify revenue streams and reduce reliance on any single market.
- Product diversification: Exploring the development and production of new stabilizer products or applications beyond PVC could widen the product portfolio and mitigate dependence on a single product line.
- Technological advancements: Utilizing technology to improve production efficiency and product quality could strengthen its competitive edge.
Threats
- Economic slowdown: An economic slowdown could decrease demand for PVC products and construction activities, impacting the company’s sales and profitability.
- Government regulations: Changes in environmental regulations or restrictions on the use of PVC could negatively impact the industry and the company’s operations.
- Fluctuations in raw material prices: As mentioned earlier, the company’s reliance on raw materials makes it vulnerable to price fluctuations, which could impact its profit margins.
- Competition: Continued intense competition in the market could lead to price wars and pressure on margins.
COMPETITIVE ANALYSIS: MARKET PEERS
Here are some of the key market peers of Platinum Industries IPO :
Peers:
- Supreme Petrochem Ltd.
- Apcotex Industries Ltd.
Platinum Industries IPO GMP
- Grey market premium as on DD-MM-YYYY = Rs / Share
Disclaimer:
- IPO Grey Market Premium (Platinum Industries IPO GMP) mention is valid for the specific date as mentioned in the header.
- We are not buying and selling IPO forms on IPO Grey Market.
- Do not subscribe for IPO by just seeing premium Price as it may change anytime before listing. Subscribe only considering Fundamentals of the companies.
Platinum Industries IPO
🔴 Live Subscription Status 🔴
29/02/2024 5:00 PM
| | NO OF SHARES OFFERED | Day 1 | Day 2 | Day 3 |
| Qualified Institutional Buyers(QIBs) | 27,52,375 | 0.07 | 0.90 | 151.00 |
| Non Institutional Investors(NIIs) | 20,64,184 | 13.58 | 25.50 | 141.80 |
| Retail Individual Investors(RIIs) | 48,16,429 | 10.21 | 25.50 | 50.91 |
| Total | 96,32,988 | 8.04 | 22.19 | 98.99 |
FINAL TAKEAWAY
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