Platinum Industries Ltd IPO

Last Updated on October 5, 2023 by BFSLTeam BFSLTeam

Platinum Industries Ltd is one of India’s leading manufacturers in the speciality chemicals sector. Its products cater to various industries, have a global market and are designed in-house. Recently, this company filed a DRHP with SEBI to launch an IPO. Now, given the future potential of the Indian speciality chemicals sector, Platinum Industries Ltd poses an ideal investment opportunity for all types of investors.  So, if you are interested in subscribing to the Platinum Industries Ltd IPO, keep reading this blog. We will take you through all its details, helping you make an informed choice.   

Also Read: What are types of IPO?

About Platinum Industries Ltd

Platinum Industries Ltd is a company which manufactures chemical stabilisers for PVC-based products. Its product offerings include – CPVC additives, PVC stabilisers and lubricants, which are used in making PVC profiles, PVC pipes, PVC fittings, cables, electrical wires, packaging materials, rigid PVC foam boards, SPC floor tiles and more.

As per a CRISIL report, in terms of sales, Platinum Industries Private Limited was the third-largest PVC stabiliser manufacturing company in India in FY 2021-22. It has a 21,000 sq. ft manufacturing facility in Palghar, Maharashtra, which is strategically located near the JNPT (Nhava Sheva) Port. This helps the company import its raw materials at low costs, along with exporting its finished goods to international markets.

Furthermore, in the last 3 years, Platinum Industries has exported its products to clients in 17 countries. This shows a strong international customer base, along with the company’s potential to become a major player in the global PVC stabiliser industry. 

Platinum Industries Ltd IPO Details

As per reports, Platinum Industries Pvt Ltd Mumbai has declared a fresh issue size of up to 1,59,03,000 equity shares for its IPO, with a face value of Rs. 10 for each share. There is no offer for sale (OFS) component of this IPO. The promoters for this offer are Krishna Dushyant Rana and Parul Krishna Rana, while Unistone Capital Private Limited is the book-running lead manager.

The registrar for this offer is Bigshare Services Private Ltd, whose website investors can visit to check their IPO allotment status. Platinum Industries is still waiting for a green signal from SEBI for its public issue. Thus, it has yet to release its IPO bid opening and closing dates. 

The company’s shares will be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). However, the listing date is yet to be announced.  

Also Read: How Can You Analyse An IPO?

Platinum Industries Ltd IPO Objectives

Platinum Industries Ltd’s primary motive behind its public issue is to expand its manufacturing capabilities to increase its global outreach. Through its subsidiary, the company is already in the process of setting up another manufacturing plant in Suez, Egypt. It shall be operational by the third quarter of FY 2024-25 and will help Platinum Industries tap into the Egyptian PVC market. 

To streamline its production and increase its non-lead-based stabiliser production capacity, this firm plans on opening another manufacturing unit at Palghar using proceeds of the IPO. It will have an estimated capacity of 60,000 MTPA and will help segregate its lead and non-lead products, enabling the company to improve its overall product quality.   

In addition to these objectives, Platinum Industries wants to use Rs. 30 crore from the net proceeds to fund working capital requirements. This would provide funding for the Palghar facility for FY24 and FY25, allowing the company to meets its profitability targets. The remaining funds will be used for general corporate purposes.

Strengths

Check out the strengths of Platinum Industries Ltd below:

• In-house R&D facilities for its products ensure high quality and sustainability.
• It has seen consistent financial performance from 2018 to 2023, with operational revenue rising from Rs. 28.41 crore to Rs. 234.05 crore, at 42.11% CAGR.
• The company offers a wide array of products consisting of calcium-based stabilisers, low lead-based stabilisers, organic-based stabilisers, etc. which cater to the needs of companies operating across various industries
• The presence of high entry barriers like technical knowledge, R&D requirements, regulated or engineered specifications, etc., makes it difficult for new firms to enter the speciality chemicals industry. This reduces the chances of high market competition, ensuring the company’s long-term profitability.  

Risks

Here are the risks which investors may face by investing in the Platinum Industries Ltd IPO:

• Failure to expand operations in emerging markets can lead to losses.
• A fall in demand for the company’s products among the industries in which they are used can adversely affect its operations and finances.
• Underutilisation of manufacturing facilities can have a huge impact on the organisation’s business and future financial performance.

Also Read: Risk of investing in IPO

Summary

Tentative dates for the Platinum Industries Ltd IPO will be released after SEBI gives its approval. Till then, you can conduct additional research on the organisation and assess its growth prospects. 

Knowing both the strengths and weaknesses of a company is essential before investing in any IPO. Furthermore, you can consider opening a Demat and trading account on our platform. By doing so, you can invest in the IPO as soon as it goes live without any hassle. 

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