Platinum Industries IPO
Platinum Industries Limited
Platinum Industries IPO Details
IPO Open
27 Feb 2024
IPO Close
29 Feb 2024
Price Band
₹162 – ₹171
Issue Size
₹235.32 Cr
Listing on
BSE, NSE
Min. Lot Size
87
Face value
₹10
GMP
₹90
Platinum Industries IPO Timeline
IPO Open
27 Feb 2024
IPO Close
29 Feb 2024
Allotment
1 Mar 2024
Refund initiation
4 Mar 2024
Demat transfer
4 Mar 2024
Listing
5 Mar 2024
Key Performance Indicators
P/BV
11.13
P/E
18.73
EPS
9.13
ROE
90.02%
ROCE
56.85%
Sector
Chemical
Table of Contents
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About Platinum Industries Limited
Established in August 2016, Platinum Industries Limited (PIL) began operations as a manufacturer of stabilizers, which remains their core competency today. Platinum Industries Limited is headquartered in Palghar, Maharashtra, India, with a manufacturing facility spread across 21,000 sq. ft.
Initially, PIL focused solely on PVC stabilizers. Over time, they expanded their product portfolio to include:
- CPVC additives
- Lubricants
- Metallic Stearates (calcium, zinc, barium, & aluminium)
Products Offered:
- PVC stabilizers: These are crucial additives that enhance the performance and durability of PVC products like pipes, profiles, fittings, and more.
- CPVC additives: Similar to their role in PVC, these additives improve the properties of CPVC (chlorinated polyvinyl chloride) materials.
- Lubricants: PIL offers lubricants used in various industrial applications.
- Metallic Stearates: These water-repelling agents are used in diverse industries, including plastics and paints.
The company achieved a strong growth trajectory, with revenue from operations increasing at a CAGR (Compound Annual Growth Rate) of 42.11% between 2018 and 2023.
The company emphasizes on environment friendly manufacturing practices, catering to the rising demand for sustainable solutions.
About Platinum Industries IPO
Platinum Industries Limited’s IPO is a 100% fresh issue offering 13,761,225 shares priced between ₹162 and ₹171 per share. The subscription window opens on February 27th and closes on February 29th, 2024.
Issue Details:
- Type of Issue: 100% fresh issue
- Face Value: ₹10 per share
- Number of Shares Offered: 13,761,225 shares
- Price Band: ₹162 to ₹171 per share
- Issue Size: ₹235.32 crore
- Listing Exchange: BSE and NSE
- Minimum Lot Size: 87 shares
- Book Running Lead Manager: Unistone Capital Private Limited
- Registrar: Bigshare Services Private Limited
IPO Timeline:
- Open Date: February 27, 2024
- Close Date: February 29, 2024
- Allotment: March 1, 2024
- Initiation of Refunds: March 4, 2024
- Credit of Shares to Demat Account: March 4, 2024
- Listing Date: March 5, 2024
- Cut-off Time for UPI Mandate Confirmation: February 29, 2024
Industry Overview
- Market Size: Indian specialty chemicals market to reach USD 53.8 billion by 2025 (CAGR 10.2%).
- PVC Stabilizers Segment: Projected CAGR of 7.8% to USD 1.33 billion by 2028.
- Market Drivers:
- Demand for durable and high-performance plastics.
- Focus on eco-friendly stabilizers (aligns with PIL’s practices).
- Rising disposable incomes and urbanization.
- TAM: Estimated at around ₹172 crore (USD 21.5 million) based on FY23 figures.
- Future Demand:
- Driven by demand for sustainable solutions, high-performance plastics, and specialty chemicals.
Peer Analysis
Market Cap:
- PIL: Unknown
- Deepak Nitrite: ₹55,726 crore (Largest)
- Chemplast Sanmar: ₹18,492 crore
- Sudarshan Chemicals: ₹8,014 crore
- Aarti Industries: ₹4,203 crore
Market Share (PVC Stabilizers – India):
- PIL: 13%
- Deepak Nitrite: ~40% (Largest)
- Chemplast Sanmar: ~25%
- Sudarshan Chemicals: ~12%
- Aarti Industries: ~10%
Revenue (FY23):
- PIL: ₹2,314.81 lakh (Smallest)
- Deepak Nitrite: ₹7,261.35 crore (Largest)
- Chemplast Sanmar: ₹4,925.53 crore
- Sudarshan Chemicals: ₹2,285.61 crore
- Aarti Industries: ₹2,126.25 crore
USP:
- PIL: Focus on innovation, diversification beyond PVC stabilizers, and commitment to sustainable practices.
- Deepak Nitrite: Diversified chemical manufacturer with a strong presence in pigments, colorants, and performance chemicals.
- Chemplast Sanmar: Largest PVC producer in India, offering a wide range of PVC products and specialty chemicals.
- Sudarshan Chemicals: Leading manufacturer of dyes and pigments, with a growing presence in specialty chemicals.
- Aarti Industries: Focus on specialty chemicals, offering a diverse product portfolio across various applications.
Platinum Industries IPO Reservation
| Investor Category | Shares |
|---|---|
| QIB | Not less than 50% of the Net Issue |
| Retail | Not more than 35% of the Net Issue |
| HNI | Not more than 15% of the Net Issue |
Platinum Industries IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 87 | ₹14,877 |
| Retail (Max) | 13 | 1131 | ₹193,401 |
| S-HNI (Min) | 14 | 1,218 | ₹208,278 |
| S-HNI (Max) | 67 | 5,829 | ₹996,759 |
| B-HNI (Min) | 68 | 5,916 | ₹1,011,636 |
Financials of Platinum Industries
| Mar 2023 | Mar 2022 | Mar 2021 | |
|---|---|---|---|
| Assets | 121.17 | 84.48 | 32.26 |
| Revenue | 232.56 | 189.24 | 89.53 |
| Profit After Tax | 37.58 | 17.75 | 4.82 |
| Net Worth | 61.88 | 22.34 | 4.47 |
| Reserves and Surplus | 21.80 | 21.28 | 3.53 |
| Total Borrowing | 17.43 | 24.24 | 3.26 |
- Strong Revenue Growth: Revenue jumped by 22.4% (₹43.32 crore) from Mar 2022 to Mar 2023.
- Profitability on the Rise: Profit after tax saw a significant increase of 112.4% (₹19.83 crore) year-over-year.
- Growing Equity Base: Net worth increased by 177.5% (₹39.54 crore) compared to Mar 2022, reflecting strong internal growth.
- Stable Reserves and Surplus: Reserves remained relatively flat, indicating potential reinvestment of profits back into the business.
- Reduced Debt Burden: Total borrowing decreased by 28.1% (₹6.81 crore) year-over-year, improving the company’s financial health.
- Significant Asset Expansion: Total assets grew by 43.4% (₹36.69 crore) in comparison to Mar 2022.
Objective of the IPO
- Invest in their subsidiary, Platinum Stabilizers Egypt LLC (PSEL): This includes financing the set-up of a manufacturing facility for PVC stabilizers in Egypt.
- Fund capital expenditure for setting up a new manufacturing facility: This facility will also focus on PVC stabilizers and will be located in Palghar, Maharashtra, India.
- Meet working capital requirements: The IPO funds will help PIL address their ongoing operational expenses.
- Funding for general corporate purposes: This could involve activities such as research & development, brand building, or potential future acquisitions.
Promoter Share Holding Pattern
Krishna Dushyant Rana & Parul Krishna Rana – 94.74% holding.
FAQ about Platinum Industries IPO
The Platinum Industries IPO opens for subscription on February 27, 2024.
The Platinum Industries IPO closes on February 29, 2024.
The price band for the Platinum Industries IPO is ₹162 to ₹171 per share.
