Platinum Industries Limited consists of a fresh issue of 1.59 crore shares. The company allocates funds internationally for PVC facilities, working capital, and general corporate purposes.
Platinum Industries IPO – Important Details
| Platinum Industries Limited IPO Date | February 27, 2024 to February 29, 2024 |
| Platinum Industries Limited IPO Listing Date | March 5, 2024 |
| Platinum Industries Limited IPO Price | INR 162 to 171 per share |
| Platinum Industries Limited IPO Lot Size | 87 Shares |
| Platinum Industries Limited IPO Total Issue Size | INR 235.32 Cr |
| Platinum Industries Limited IPO Basis of Allotment | March 1, 2024 |
| Platinum Industries Limited IPO Initiation of Refunds | March 4, 2024 |
| Platinum Industries Limited IPO Credit of Shares to Demat | March 4, 2024 |
| Platinum Industries Limited IPO Issue Type | Book Built Issue IPO |
| Platinum Industries Limited IPO Listing At | BSE, NSE |
Platinum Industries Ltd IPO – Company Profile
Platinum Industries excels in multi-product manufacturing, specializing in PVC and CPVC stabilizers and lubricants. Their specialty chemicals serve various applications, including PVC pipes, electrical wires, and packaging materials, contributing to industry advancements.
They offer customized solutions and trading in commodity chemicals. Their ISO-certified manufacturing facility in Palghar, Maharashtra, strategically located near JNPT Port, facilitates global exports. With a dedicated R&D facility, innovation drives sustained product excellence.
They consistently broaden their product portfolios for diverse applications. Prioritizing product quality and leveraging a strong distributor network, their established brand image facilitates successful entry into new product categories.
Platinum Industries Ltd IPO – Fundamental Analysis
Platinum Industries exhibits robust growth in revenue and profits, substantial equity expansion, and strong financial management ahead of its IPO. Despite a decline in RoNW, its improved debt profile and liquidity ratios signal a promising investment opportunity with potential for growth.
Revenue Growth:
The company has consistently increased revenue, from ₹892.69 lakhs in 2021 to ₹2,314.81 lakhs in 2023. This demonstrates an expanding market presence and increasing demand for its products or services.
Equity Expansion:
Equity has seen a substantial rise from ₹44.72 lakhs in 2021 to ₹715.59 lakhs in 2023, indicating strong shareholder confidence and possibly successful equity financing rounds to fuel growth.
Profitability:
Profit after tax has shown impressive growth, from ₹48.15 lakhs in 2021 to ₹375.84 lakhs in 2023, signaling efficient operations and profitability enhancement.
Return on Net Worth (RoNW):
Despite a decrease from 107.66% in 2021 to 61.26% in 2023, the RoNW remains high, showcasing the company’s ability to generate profits from its equity base, albeit at a decreasing rate as the equity base expands.
Diluted EPS:
The Diluted EPS has increased significantly, from ₹1.24 in 2021 to ₹9.42 in 2023, reflecting the company’s growing earnings power per share.
Asset and Liability Management:
Total assets have grown, demonstrating the company’s expansion and investment in its operational capacity. Total liabilities have been effectively managed, with a notable decrease in 2023, indicating sound financial management.
NAV:
The reported NAV shows a discrepancy, with an increase in equity but a decrease in NAV per share in 2023, which might be a typographical error, as it contradicts the equity growth.
Debt Equity Ratio:
The debt-equity ratio has improved significantly, from 1.09 in 2022 to 0.28 in 2023, suggesting a stronger balance sheet with less reliance on debt financing.
Liquidity Ratios:
The current and interest coverage ratios have improved over the years, indicating better liquidity and the company’s ability to cover its interest expenses comfortably.
Platinum Industries IPO Financial Information
| Particular | As of 31 March 2021 | As of 31 March 2022 | As of 31 March 2023 |
| Revenue (₹ in lakhs) | 892.69 | 1,881.56 | 2,314.81 |
| Equity (₹ in lakhs) | 44.72 | 223.38 | 715.59 |
| Expenses (₹ in lakhs) | 828.35 | 1,652.78 | 1,816.19 |
| Profit and Loss After Tax (₹ in lakhs) | 48.15 | 177.48 | 375.84 |
| RoNW (%) | 107.66 | 79.45 | 61.26 |
| Diluted EPS only (₹) | 1.24 | 4.41 | 9.42 |
| Total Assets (in lakhs) | 322.56 | 844.79 | 1,211.68 |
| Total Liabilities (in lakhs) | 277.84 | 621.41 | 496.1 |
| NAV (in lakhs) | 42.48 | 212.20 | 15.37 |
| Debt Equity Ratio | 0.73 | 1.09 | 0.28 |
| Current Ratio | 1.04 | 1.29 | 1.87 |
| Interest Coverage Ratio | 18.37 | 16.13 | 24.49 |
Platinum Industries IPO Peer Comparison
Platinum Industries Limited, with a RoNW of 61.26% and an EPS of ₹9.42, showcases higher profitability efficiency compared to Supreme Petrochem and Apcotex Industries despite having lower revenue and NAV, highlighting its strong performance relative to its size.
| Company | Revenue (₹ in million) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| PlatinumIndustriesLimited | 2,314.81 | 10 | NA | 9.42 | 9.42 | 61.26 | 15.37 |
| Supreme Petrochem Ltd | 52,872.05 | 5 | 16.57 | 26.49 | 26.49 | 27.02 | 98.06 |
| Apcotex Industries Ltd | 10,799.29 | 2 | 26.56 | 20.82 | 20.82 | 22.68 | 91.82 |
Platinum Industries IPO Objective
The main objective of Platinum Industries is to allocate INR 67.721 crores for Proposed Facility 1 in Egypt (PSEL) and INR 71.261 crores for Proposed Facility 2 in Palghar. INR 30 crores for working capital, with the remaining funds for general corporate purposes.
- Investment in their subsidiary, Platinum Stabilizers Egypt LLC (“PSEL”): The company intends to allocate INR 67.721 crores from net proceeds to invest in PSEL for capital expenditure in Proposed Facility 1 (Egypt). Funds will be used for setting up a manufacturing plant, customized material handling systems, reactors, and civil work.
- Setting up a manufacturing facility for PVC Additives at Palghar, Maharashtra, India: The company plans to utilize INR 71.261 crore net proceeds for proposed Facility 2 in Palghar. Funds will fund a 60,000 TPA PVC additives manufacturing plant, incorporating material handling systems, reactors, and necessary civil work.
- Funding working capital requirements of the company: The company intends to utilize INR 30 crores from the net proceeds to fund the working capital requirements of their company in the financial years ending March 31, 2024, and March 31, 2025.
- General corporate purposes: The company plans to deploy the balance of funds towards the general corporate goal, including strategic initiatives, acquisitions, investments, offices, business development, R&D, assets, and expenses.
Platinum Industries Ltd IPO Risks And Challenges
Platinum Industries risks include expanding into new regions, which is crucial for growth; failure may harm sales, finances, and cash flows. Delays or cost overruns in Proposed Facilities could substantially impact financials. Efficiently utilizing manufacturing capacities is critical.
- Expanding operations into new regions and establishing a distributor network is critical for their growth. Failure may adversely impact sales, financial condition, and cash flows, emphasizing successful market expansion.
- Delays or cost overruns in establishing Proposed Facilities, including plant and machinery purchases, beyond expectations could substantially impact their financial condition and operational results and hinder growth prospects.
- Underutilization of their manufacturing capacities, including expanded ones, may adversely affect their business, prospects, and financial performance, emphasizing the critical need for efficient capacity utilization.
Platinum Industries Limited IPO – Industry & Market Potential
The Indian specialty chemicals industry, comprising ~26% of the overall chemicals sector, was valued at $29 billion in fiscal 2020. Despite a decline in 2021, it rebounded to $33.5 billion in 2022, and it is projected to reach $51 billion by fiscal 2026, growing at an 11.1% CAGR from 2022-26.
Global PVC demand is projected to increase at a 3.8% CAGR, reaching around 58 million tons by CY2026. Growth is attributed to the building and construction sector, automotive demand, medical devices, and increased use of consumer products.
Domestic PVC demand is anticipated to surge at an 8-9% CAGR from fiscal 2022 to 2027, driven by heightened pipe and fittings demand. The industry’s high utilization rates are expected to persist.
Platinum Industries IPO – Type of Offer
Platinum Industries will have a fresh issue of 1.59 crore shares. The company allocates funds internationally for PVC facilities, working capital, and general corporate purposes.
Platinum Industries IPO Offer Size
The offer size of Platinum Industries is INR 235.32 crores. The IPO consists of fresh issue of 1.59 crore shares. The company allocates funds internationally for PVC facilities, working capital, and general corporate purposes.
Platinum Industries Ltd IPO Allotment Structure
Platinum Industries Limited’s IPO allocation designates 50% for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 35% for Retail Individual Investors (RIIs) in line with SEBI regulations.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
●Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
How to apply for a Platinum Industries Ltd IPO?
To apply for the Platinum Industries Limited through Alice Blue, you would typically follow these steps:
1. Open a Demat and Trading Account: If you don’t already have one, you need to open a Demat and trading account with Alice Blue.
2. Check for IPO Details: Once your account is active, you can check for the Platinum Industries Limited IPO details in the IPO section of the Alice Blue platform.
3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
4.Submit the Application: Confirm all your details and submit your application.
You can apply for Platinum Industries Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check Platinum Industries Limited IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Platinum Industries Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Platinum Industries Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Platinum Industries Limited IPO:
Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Platinum Industries Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
NSE and BSE: You can also check the allotment status on the National Stock Exchange’s (NSE) and Bombay Stock Exchange’s (BSE) official websites. You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Platinum Industries Limited IPO Offer Registrar
The registrar for the Platinum Industries Limited IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Bigshare Services Private Limited
Office No. S6-2, 6th floor,
Pinnacle Business Park,
Next to Ahura Centre,
Mahakali Caves Road,
Andheri East, Mumbai-400093
Telephone: +91-22-62638200
Email: [email protected]
Website: www.bigshareonline.com
Platinum Industries Limited IPO FAQs
The allotment date of Platinum Industries Limited’s IPO is March 1, 2024.
The price band of Platinum Industries Limited IPO is INR 162 to 171 per share.
Platinum Industries Limited consists of a fresh issue of 1.59 crore shares. The company allocates funds internationally for PVC facilities, working capital, and general corporate purposes.
The listing date of Platinum Industries Limited’s IPO is March 5, 2024.
