Platinum Industries Ltd. IPO -Review, Valuation, Date & GMP

Platinum Industries IPO  - Complete Overview

Established in August 2016, Platinum Industries Limited is a major player in the chemical sector, especially something called PVC stabilisers. PVC stands for polyvinyl chloride, which is a type of plastic. They also make other products like CPVC additives and lubricants. They focus on making eco-friendly options, which are better for the environment. 

Their products are used in things like PVC pipes, electrical wires, and packaging materials. The company's factory is in Palghar, Maharashtra.

From 2018 to 2023, their money earned from operations increased rapidly, from about  42.11% every year.

In July 2023, they will have twelve places across India where they send their products. And as of May 31st, 2023, the factory has 71 employees and 17 workers.

 

Platinum Industries IPO Overview

Platinum Industries IPO date is slated to be open for subscription from February 27, 2024, to February 29, 2024. This BSE NSE IPO follows a Book Built Issue IPO.

Platinum Industries IPO price is fixed at Rs. 150 - Rs.157 per share. 

The total issue size of this IPO amounts to Rs.216.05 CR. The company has reserved 50% for institutional investors, 15% for non-institutional investors, and 35% for retail investors. 

 

Platinum Industries IPO timetable (Tentative)

Events	Date
IPO Opening Date	27 February 2024
IPO Closing Date	29 February 2024
IPO Allotment Date	1 March 2024
Refund initiation	4 March 2024
IPO Listing Date	5 March 2024

 

Platinum Industries IPO Details

Platinum Industries is offering shares for people to buy from February 27 to February 29, with prices starting at Rs.162. It will be listed on BSE and NSE.

IPO opening & closing date	27 February to 29 February2024
Face value	Rs.10 per share
Issue Price	Rs. 162 - Rs. 171 per share
Lot Size	87 Shares
Price of 1 lot	Rs. 14,877
Total Issue Size	13,761,225 shares (aggregating up to Rs.235.32 Cr)
Offer for sale	shares (aggregating up to Rs. Cr)
Fresh issue	13,761,225 shares (aggregating up to Rs.235.32 Cr)
Listing at	BSE NSE
Issue Type	Book Built Issue IPO
Registrar	Bigshare Services Pvt Ltd

 

Platinum Industries IPO Lot Details

Platinum Industries IPO offers varying investment options for both retail and high-net-worth individuals.

Application	Lot	Shares	Amount
Minimum Lot Investment (Retail)	1 lot	87	Rs.14,877
Maximum Lot Investment (Retail)	13 lot	1131	Rs.1,93,401
Minimum Lot Investment (HNI)	14 lot	1,218	Rs.2,08,278
Minimum Lot Investment (HNI)	67 lot	5,829	Rs.9,96,759

 

Platinum Industries IPO Reservation

QIB Shares Offered	Maximum 50%
Retail Shares Offered	Minimum 35%
Other Shares Offered	Minimum 15%

Company Financial

Platinum Industries experienced substantial growth in financials when we compare from the previous financial years, while reducing total borrowings.

(Amount in Crore)

Period	Sep 30  FY 23	Mar 31  FY 23	Mar 31 FY 22
Total Assets	137.72	121.17	84.48
Total Revenue	123.73	232.56	189.24
PAT	22.84	37.58	17.75
Net worth	85.04	61.88	22.34
Reserve & Surplus	44.86	21.80	21.28
Total Borrowings	11.46	17.43	24.24

 

 

Revenue Distribution Product  Wise

Platinum Industries' revenue from PVC stabilisers increased significantly from the previous years, while trading sales showed a noticeable decrease.

(in % age)

Particulars	Sep 30  FY 23	Mar 31  FY 23	Mar 31  FY 22
PVC Stabilizers	59.84%	51.17%	42.11%
CPVC Additives	3.97%	7.58%	7.58%
Lubricants	29.98%	26.75%	21.54%
Trading Sales	5.58%	13.60%	28.32%
Others	0.63%	0.90%	0.45%
Total	100.00%	100.00%	100.00%

 

Revenue Distribution State Wise

Platinum Industries' domestic revenue share improved, while the export share declined over the mentioned periods.

( in % age)

Particulars	Jun 30  FY 23	Mar 31  FY 23	Mar 31  FY 22
Domestic	90.74%	94.46%	93.50%
Exports	9.26%	5.54%	6.50%
Total	100.00%	100.00%	100.00%

 

Revenue by Operations

Platinum Industries experienced substantial revenue growth in March 2023 compared to March 2022, with a significant increase from September 2022.
(Amount in Crores)

Particulars	Sep 30 FY 23	Mar 31  FY 23	Mar 31  FY 22
Revenue from operations	1,22.82	2,31.48	1,88.15
Other Income	0.91	1.07	1.08
Total Revenue	1,23.73	2,32.55	1,89.23

The Objective of the Issue

The company intends to use the net proceeds for the following objectives.

• Investing in PSEL to support its capital expenditure needs associated with establishing the proposed Facility .

• Financing the company's capital expenditure needs for the establishment of the proposed Facility .

• Providing funding for the company's operational working capital requirements.

• Allocating funds for general corporate purposes.

Promoters and Management of Platinum Industries IPO

1. Krishna Dushyant Rana.

2. Parul Krishna Rana.

Pre-issue Promoter Shareholding	94.74%
Post-issue Promoter Shareholding

Platinum Industries IPO Lead Managers

•   Monarch Networth Capital Ltd

• Unistone Capital Pvt Ltd

• Systematix Corporate Services Limited

 

 

 

Peers of Platinum Industries IPO

In comparison to peers Platinum Industries has a lower P/E ratio, indicating potentially better value for investors.

Name of the company	Face value (Rs. per share)	P/ E	EPS (Basic) (Rs.)
Platinum Industries Limited	10	18.15	9.42
Supreme Petrochem Limited	5	24.39	26.49
Apcotex Industries Ltd.	2	22.36n	20.82

 

Evaluation

The IPO is priced within the range of Rs. 162 to Rs. 171 per share.

 

Evaluation of P/E Ratio:

- Considering the FY23 EPS of Rs 9.42 from the last year, the resulting P/E ratio is 18.15x.

- Taking into account the weighted EPS of Rs 6.39 for the last three years, the P/E ratio amounts to 26.77x.

    

Comparative Analysis with Listed Peers

- Supreme Petrochem Limited has a P/E ratio of 24.39x (the highest).

- Apcotex Industries Ltd. has a P/E ratio of  22.36x (the lowest).

- The industry's average P/E is 23.38x.

 

As a result, the IPO price range, with a P/E ratio ranging from 18.15x to 26.77x, seems neutral in comparison to the industry average of 23.38.

 

Dividend Policy

The company hasn't paid dividends in past fiscal years. Whether we can pay them in the future depends on factors like profits, past dividend trends, capital needs, legal restrictions, and other relevant considerations evaluated by our Board.

IPO's Strengths

• Consistent financial performance.

• Strong focus on R&D and sustainability.

• Diverse product portfolio serving various industries.

• High entry barriers in the specialty chemical industry.

• Known for quality products.

 

IPO's Weaknesses

• Heavy reliance on a few customers for revenue.

• Expansion into new regions poses risks.

• Lack of registered trademarks.

• Reliance on third-party transportation providers.

• Operational risks due to technological changes.
  
  

 

 

IPO GMP Today

The Latest GMP of Platinum Industries IPO is Rs.85.

 

Conclusion

In conclusion, Platinum Industries Limited, with its focus on eco-friendly chemical products and a strong presence in the PVC stabilisers market, presents an interesting investment opportunity through its upcoming IPO. The company has demonstrated robust financial performance, marked by substantial revenue growth and a prudent reduction in total borrowings.

The IPO, scheduled to open for subscription from February 27 to February 29, 2024, is priced in the range of Rs. 162 to Rs. 171 per share.

The strengths of Platinum Industries include consistent financial performance, a focus on research and development, a diverse product portfolio, and high entry barriers in the specialty chemical industry. However, investors should also be mindful of the weaknesses, such as heavy reliance on a few customers and potential risks associated with expansion into new regions.

 

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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