On the second day of Platinum Industries Limited’s IPO, the subscription figures varied significantly among different investor classes. Qualified Institutional Buyers (QIBs) showed moderate interest with a subscription rate of 0.90 times. However, there was an overwhelming response from Non-Institutional Investors, who subscribed 42.85 times. Retail Individual Investors (RIIs) also participated actively, subscribing 25.50 times. The total subscription reached 22.19 times, showcasing a robust demand across various investor segments, especially among non-institutional and retail investors.
Platinum Industries Limited IPO – Fundamental Analysis:
Platinum Industries has shown notable financial growth, with revenue jumping from ₹892.69 lakhs in 2021 to ₹2,314.81 lakhs in 2023, alongside significant equity growth from ₹44.72 lakhs to ₹715.59 lakhs, reflecting increasing market presence and investor confidence. Profit after tax also rose impressively from ₹48.15 lakhs to ₹375.84 lakhs. The company maintains a strong profitability ratio despite a decrease in RoNW from 107.66% to 61.26%. Its debt profile has improved, evidenced by a better debt-equity ratio, while liquidity ratios signal robust financial health and operational efficiency.
Platinum Industries Limited IPO – Risks And Challenges:
Platinum Industries faces key risks in its expansion strategy. Entering new markets is vital for their growth, but unsuccessful ventures could negatively affect sales and financial health. Additionally, any delays or extra costs in setting up their proposed facilities, such as plants and machinery, could significantly harm their financial status and growth potential. The underutilization of their manufacturing capacities, including those recently expanded, poses another risk, highlighting the importance of efficient usage for business and financial stability.
