Platinum Industries IPO: Open/Close Date, Price, Lot Size, Allotment, Subscription

About Company

Platinum Industries is a major company in the speciality chemicals industry, offering a diverse set of products such as PVC stabilizers, CPVC additives and lubricants. However, their focus is on the business of manufacturing stabilizers. Their products are primarily used in the production of PVC pipes, PVC profiles, PVC fittings, electrical wires and cables, SPC floor tiles, Rigid PVC foam boards, packaging materials, etc.

Let us now take a look at the overall industry that Platinum Industries is in. The Indian speciality chemicals industry expanded at 6.7% CAGR over fiscals 2015-20, driven by an increase in domestic offtake from various end-user industries and rising exports. The industry exhibited recovery in fiscal 2022 with an estimated worth of $33.5 billion and is expected to reach $51 billion

by fiscal 2026, growing at 11.1% CAGR over 2022-26. Therefore, as the industry grows, a major player like Platinum Industries is expected to grow along with it.

Platinum Industries Ltd IPO Details

Platinum Industries Ltd IPO Date

Retail investors can bid for the Platinum Industries IPO. The issue date has not been announced yet.

Platinum Industries Ltd IPO Price Band

Platinum Industries is a 100% fresh issue IPO comprising 15,903,000 shares. It is a book-building issue. The price range has not been announced yet.

Platinum Industries Ltd IPO Lot Size

The Platinum Industries Ltd IPO lot size and minimum investment will be announced later.

Platinum Industries Ltd IPO Objectives

The objectives of Platinum Industries Ltd IPO are listed below:

To invest in their subsidiary, Platinum Stabilizers Egypt LLC (“PSEL”) to set up a manufacturing facility for PVC Stabilizers at SC Zone, Governorate of Suez, Egypt.
To fund capital expenditure for setting up a manufacturing facility for PVC Stabilizers at Palghar, Maharashtra, India (“Proposed Facility 2 (Palghar)”).
Fund working capital requirements of the company.
For general corporate purposes.

Peer Details

Some of the major peers of Platinum Industries include the following -

Supreme Petrochem Ltd
Apcotex Industries Ltd
Baerlocher India Additives Pvt Ltd
Goldstab Organics Pvt Ltd

How to check the allotment status of the Platinum Industries Ltd IPO?

A: Steps to check IPO allotment status on Angel One’s app:

Log in to the Angel One app
Validate with an OTP
Enter your application number, DP ID, and PAN number into the app
Click on ‘Submit’

Contact Details of Platinum Industries Ltd

Registered office: Unit No. 841, 4th Floor, Solitaire Corporate Park-8, Andheri Kurla Road, Andheri (E), Mumbai – 400093, Maharashtra.

Phone: +917304538055

E-mail:[email protected]

Platinum Industries Company Financials

Particulars	Period Ending on 31st Mar’23	Year ending on 31st Mar’22	Year ending on 31st Mar’21
Total Income	2,325.55	1,892.38	895.30
Profit After Tax (PAT)	375.84	177.48	48.15
Current Ratio	1.87	1.29	1.04
Return on Capital Employed	56.85%	16.13	74.28%
Interest Coverage Ratio	24.49	16.13	18.37

Know before investing

Strengths

Platinum Industries Ltd is the third largest seller of PVC stabilizer in India. They enjoyed an 8% market share for the financial year 2021-22 in the domestic market. Therefore, they are a fairly established player in the market already.
Compared to its peers in the industry, the company has recorded the highest revenue CAGR (FY20-FY22) of 53.0%. Gross profit increased at a CAGR of 88.9%, EBITDA margin increased at 12.2%, PAT margin increased at 220.40%, respectively. This shows the increasing profitability of the company over time.
They have recognised the significance of an industry shift and are gradually transitioning from lead-based PVC stabilizers to calcium zinc-based and calcium organic-based stabilizers. This will ensure that they are on a path of innovation and growth.
The barriers to entry in this industry are quite high, given the technical expertise and capital required. Therefore, now that the company is established, it will be hard for any new potential competitors to grab market share from Platinum Industries.

Risks

They are dependent on only a few customers for a major part of their revenues. For example, in 2023, their top 10 customers provided 86.49% of their revenue. This exposes them to a significant risk of sudden loss of revenue.
They do not enter into long-term arrangements with their customers. Therefore they do not have an assured stream of income for the lon run.
Their revenues are greatly dependent on the revenues of the businesses that they sell their products to. Any dips in the businesses of these clients will reduce Platinum Industries’s own revenues.
Out of the East, West, North and South zones, the West takes up a disproportionately large portion of the revenue, at around 62.93% in fiscal 2023. Any unfavourable developments in this region can disrupt their operations.
They operate out of a single manufacturing facility. Any issues in that facility or the area may significantly disrupt the company’s operations.