About Platinum Industries IPO
Platinum Industries IPO: Founded in August 2016, Platinum Industries Limited produces lubricants, CPVC additives, and PVC stabilisers. Its products find applications in various industries such as PVC pipes, fittings, electrical wires, cables, and more.
The company’s manufacturing facility, spread across 21,000 sq. ft. in Palghar, Maharashtra, is equipped to meet the demands of its diverse clientele. As of July 2023, Platinum Industries operates twelve distribution centres across India.Before making any subscription decisions, investors must thoroughly research the IPO.
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Complete details about Platinum Industries IPO
Platinum Industries is gearing up to raise funds through an IPO comprising 1,37,61,225 equity shares. Notably, this offering solely consists of fresh shares, with no offer-for-sale component.
Platinum Industries IPO Schedule
Mark your calendars! The IPO subscription window is set to open on February 27, 2024, and will close on February 29, 2024.
Pricing Details
Investors should take note of the price band for the IPO, which has been fixed at Rs 162-171 per share.
Offer Details
Platinum Industries aims to raise approximately Rs 235.32 crore through this IPO. It’s noteworthy that promoters hold a significant stake in the company, standing at 94.74 percent. Public shareholders, including notable figures like Dr. Horst Michael Schiller, account for the remaining 5.26 percent.
Objectives of the Issue
The proceeds from the IPO will be allocated strategically. A substantial portion, amounting to Rs 67.72 crore, is earmarked for establishing a manufacturing facility for PVC stabilisers in Egypt. Additionally, Rs 71.26 crore will be utilised for setting up another manufacturing unit in Palghar, Maharashtra.
Lot Size
Investors may bid for a minimum of 87 equity shares and multiples thereof. This implies a minimum investment of Rs 14,094 at the lower price band.
Investors’ minimum and maximum bid sizes:
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 87 | ₹14,877 |
| Retail (Max) | 13 | 1131 | ₹193,401 |
| S-HNI (Min) | 14 | 1218 | ₹208,278 |
| S-HNI (Max) | 67 | 5829 | ₹996,759 |
| B-HNI (Min) | 68 | 5916 | ₹1,011,636 |
Company Profile
Platinum Industries, founded in August 2016, specialises in the production of stabilisers, PVC additives, and lubricants. Its diverse range of products caters to various industries, including PVC pipes, electrical wires, packaging materials, among others.
Financial Performance
Examining the financials, in FY 2023, Platinum reported a revenue of Rs 234 crore, marking a significant growth of 24.5 percent from the previous year. Net profit also surged to Rs 37.5 crore during the same period.
Platinum Industries has exhibited robust financial performance over the years:
- Revenue grew at a CAGR of 42.11% from ₹284.19M in 2018 to ₹2,340.56M in 2023.
- Profit after tax (PAT) rose by 111.76% between the financial years ending March 31, 2023, and March 31, 2022.
Shareholding
- Pre Issue: 41,163,648 shares
- Post Issue: 54,924,873 shares
Investor Category
- QIB Shares Offered: Not more than 50% of the Net Issue
- Retail Shares Offered: Not less than 35% of the Net Issue
- NII (HNI) Shares Offered: Not less than 15% of the Net Issue
IPO Timeline
Here’s a tentative schedule for the Platinum Industries IPO:
- Opening Date: February 27, 2024
- Closing Date: February 29, 2024
- Basis of Allotment: March 1, 2024
- Refunds Initiation: March 4, 2024
- Shares Credited to Demat: March 4, 2024
- Listing Date: March 5, 2024
- Cut-off Time for UPI Mandate Confirmation: 5 PM on February 29, 2024
Key Performance Indicators
- Market Capitalization: ₹939.22 Cr
- ROE: 90.02%
- ROCE: 56.85%
- Debt/Equity: 0.28
- RoNW: 61.26%
- P/BV: 11.13
Pre and Post IPO Comparison
| KPI | Pre IPO | Post IPO |
| EPS (Rs) | 9.13 | 8.31 |
| P/E (x) | 18.73 | 20.57 |
Objectives of the Issue of Platinum industries IPO
- Investment in subsidiary Platinum Stabilizers Egypt LLC, for capital expenditure.
- Funding capital expenditure requirements for setting up a manufacturing facility in Palghar, Maharashtra.
- Meeting working capital requirements.
- General corporate purposes.
Key Risks
Investors should be aware of certain risks associated with Platinum Industries, including dependency on a single manufacturing facility, reliance on a few major customers, and the challenge of expanding into new regions.
Listing Date
The tentative listing date for the initial public offering (IPO) is set for Tuesday, March 5, 2024, on both the BSE and NSE.
FAQs (Frequently Asked Questions)
How can I participate in Platinum Industries IPO?
- To participate, investors can bid for equity shares during the subscription window as per the prescribed lot size.
What is the minimum investment required for retail investors?
- Retail investors can start with a minimum investment of Rs 14,094 at the lower price band.
What are the key sectors Platinum Industries caters to?
- Platinum Industries serves a diverse range of sectors including PVC pipes, electrical wires, and packaging materials, among others.
What risks should investors consider before subscribing to the IPO?
- Investors should be cautious of risks such as dependency on a single manufacturing facility and reliance on a few major customers.
When is the IPO expected to be listed on the stock exchanges?
- The IPO is tentatively scheduled to be listed on BSE and NSE on Tuesday, March 5, 2024.
Platinum Industries IPO: The Conclusion
With its strategic allocation of funds, robust financial performance, and plans for expansion, Platinum Industries’ IPO presents an enticing opportunity for investors looking to capitalise on the company’s growth potential.
Contact Information
- Address: Unit No. 841, 4th Floor, Solitaire Corporate Park-8, Andheri Kurla Road, Andheri (E), Mumbai –400093
- Email: cs@platinumindustriesltd.com
- Website: Platinum Industries Limited
Disclaimer: The information in this “Stock Profile” blog post is for informational purposes only. It is not financial advice. Always consult a qualified expert before making investment decisions.
