Platinum Industries is a major company in the speciality chemicals industry, offering a diverse set of products such as Poly Vinyl Chloride (PVC) stabilisers, Chlorinated Polyvinyl Chloride (CPVC) additives and lubricants. However, their focus is on the business of manufacturing stabilisers. 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 FY 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 FY 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 from February 27, 2024, to February 29, 2024.
Platinum Industries Ltd IPO Price Band
Platinum Industries is a 100% fresh issue IPO comprising 1,37,61,225 shares. It is a book-building issue. The price range of the IPO is ₹162 to ₹171 per share.
Platinum Industries Ltd IPO Lot Size
The Platinum Industries Ltd IPO lot size is 87 shares, and the minimum investment is ₹14,877.
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
As per RHP, the listed peers of Platinum Industries include the following -
- Supreme Petrochem Ltd
- Apcotex Industries Ltd
How to check the allotment status of the Platinum Industries Ltd IPO?
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:cs@platinumindustriesltd.com
Platinum Industries Company Financials
| Particulars (Amount in ₹ million) | Period ended September 30, 2023 | Period Ending on March 31, 2023 | Year ending on March 31, 2022 |
|---|---|---|---|
| Total Income | 1,237.34 | 2,325.55 | 1,892.38 |
| Profit After Tax (PAT) | 228.35 | 375.84 | 177.48 |
| Current Ratio | 2.52 | 1.87 | 1.29 |
| Return on Capital Employed | 28.83% | 56.85% | 16.13% |
| Interest Coverage Ratio | 19.88 | 24.49 | 16.13 |
Know before investing
Strengths
5Platinum Industries Ltd is the third largest seller of PVC stabilisers in India. They enjoyed an 8% market share in the domestic market for the financial year 2021-22. 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 to 12.2%, and PAT margin increased to 220.40%. 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 stabilisers to calcium zinc-based and calcium organic-based stabilisers. 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
5They 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 in the long run.
Their revenues are greatly dependent on the revenues of the businesses to which they sell their products. Any dips in the businesses of these clients will impact the company’s 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.
