Platinum Industries Limited is a Mainboard IPO with a book-built issue of Rs. 235 crores, with fresh issuance of ~1.37 crore shares. The IPO will open from 27 February to 29 February 2024. Allotment is expected to be done on 1 March and will be listed on BSE and NSE on 5 March 2024. The price band is ₹162 to ₹171 per share, with a minimum lot size of 87 shares and a minimum investment amount of ₹14,877. The book-running lead manager is Unistone Capital, while Bigshare Services is the registrar for the issue.
The net proceeds from the issuance of 1,37,61,225 equity shares (worth Rs. 235 cr) will be utilized to meet working capital requirements (~Rs. 30 cr); and funding capital expenditure for setting up 2 facilities, in Egypt and Palghar (~Rs 147 crs).
About Platinum Industries Ltd IPO
Platinum Industries is a multi-product company engaged in the business of manufacturing stabilizers. The company operates in three segments: PVC stabilizers, CPVC additives, and lubricants. Platinum’s product finds their application in PVC pipes, PVC profiles, PVC fittings, electrical wires and cables, SPC floor tiles, Rigid PVC foam boards, packaging materials, etc.
Platinum Industries Ltd IPO Financials
Particulars (in Cr)
H1 FY24
FY23
FY22
FY21
Total Revenue Annual
123
231
188
89
Operating Expenses Annual
90
178
163
82
Operating Profit Annual
32
54
25
8
Depreciation
1
2
1
1
Interest Annual
2
2
2
0
Tax Annual
7
13
6
2
Net Profit Annual
23
38
18
5
Interest Earned
2
-
-
-
Total Share Holder Funds
85
62
22
4
Fixed Asset Annual
28
29
4
4
Total Non Current Asset
11
10
3
2
Total Current Asset
98
82
77
26
Total Asset Annual
138
121
84
32
Book Value Per Share
₹ 15
₹ 11
₹ 4
₹ 1
ROE
31.4%
90.0%
132.4%
138.6%
ROCE
28.8%
56.9%
52.5%
74.3%
Total Debt To Total Equity
0.1
0.3
1.1
0.7
EBIDTA
26.4%
23.3%
13.5%
8.5%
Cash From Operating
23
38
-15
3
Cash From Investing
-16
-37
-5
-1
Cash From Finance
-8
0
19
-1
Net Cash Flow
-1
2
-1
1
Promoter's Holding
Total Share Capital
38,994,830
Offered to Public
13,761,225
Promoter’s Holding(Pre-Issue)
94.74
Promoter’s Holding(Post-Issue)
-
Platinum Industries Ltd IPO: Strengths
1. Varied product portfolio catering to diversified industries.
2. High entry barriers in the specialty chemical industry.
3. Strong In-house R&D Capabilities
Platinum Industries Ltd IPO: Weaknesses
1. The business depends on a single standalone manufacturing facility in Palghar, which can disrupt the entire company's operations if there is a breakdown in the plant.
2. The business is concentrated on the top 5 customers, which have contributed ~75-80% of the top line over the past 3 fiscal years
Frequently asked questions
The Platinum Industries Ltd IPO is the initial public offering (IPO) of shares of Platinum Industries Ltd, a company seeking to raise capital by offering its shares to the public for the first time.
Platinum Industries Ltd is going public to raise funds for various purposes such as expansion, debt repayment, working capital, or other corporate objectives.
The subscription period for the Platinum Industries Ltd IPO is from 27th February to 29th February.
Risks associated with investing in the Platinum Industries Ltd IPO may include market volatility, uncertainties about the company's future performance, industry-specific risks, regulatory risks, and general market risks. Investors should carefully consider these risks before investing.