PLATINUM INDUSTRIES LIMITED IPO
Platinum Industries Limited Company Profile : Platinum Industries Limited is a diversified company involved in the production of stabilizers, operating within the specialty chemicals sector. Its product portfolio comprises PVC stabilizers, CPVC additives, and lubricants. These products cater to various applications such as PVC pipes, profiles, fittings, electrical wires and cables, SPC floor tiles, rigid PVC foam boards, packaging materials, and more.
- As per the CRISIL Report, Platinum Industries Limited ranks as the third largest PVC stabilizer manufacturer in the domestic market, boasting approximately a 13.00% market share in terms of sales for the financial year 2022-23.
- Compared to its industry peers, Platinum Industries Limited achieved remarkable financial growth in fiscal year 2023. It boasted the highest Revenue Compound Annual Growth Rate (CAGR) of 48.8% from FY20 to FY23. Additionally, its Gross Profit increased significantly with a CAGR of 92.4%, accompanied by impressive EBITDA margin of 145.5% and PAT (Profit After Tax) margin of 185.60%. Notably, Platinum Industries Limited’s gross margin surged notably from 15.6% in fiscal year 2020 to 37.5% in fiscal year 2023, marking the highest gross margin among all peers in the industry for the fiscal year 2023.
- PVC stabilizers are chemical additives incorporated into the manufacturing process of polyvinyl chloride (PVC) based items to improve their performance and longevity. They bolster the thermal stability of PVC, enabling it to endure high temperatures without experiencing substantial degradation or compromising its physical characteristics.
- Platinum Industries Limited offers personalized products and solutions both directly to clients and via a network of distributors. Additionally, the company engages in trading activities involving related commodity chemicals like titanium dioxide and PVC/CPVC resin. Furthermore, Platinum Industries Limited exports its products to various countries. With a distribution network spanning 12 locations across India, the company ensures widespread availability and accessibility of its offerings.
- Platinum Industries Limited’s Manufacturing Facility is situated in Palghar, Maharashtra, covering an extensive area totaling approximately 21,000 square feet. This facility has been awarded the ISO 9001:2015 certification, signifying adherence to stringent quality management standards. Strategically located near the JNPT (Nhava Sheva) Port in Maharashtra, the manufacturing site facilitates seamless logistics by receiving imported raw materials and exporting finished goods to international markets efficiently.
Alongside manufacturing facilities in Palghar, Maharashtra, Platinum Industries Limited also operate a dedicated in-house R&D facility situated at Gut no.181/11 to 181/26, village Dhansar, Palghar, Maharashtra.
IPO information:
- Issue date: 27-Feb-2024 to 29-Feb-2024
- Price range: Rs. 162 to Rs. 171
- Issue size: ₹ 235.3 Crores
- Face value : Rs.10
- Bid lot (retail) : ₹ 14,877 ( 1 Lot )
- Fresh issue : ₹ 235.3 Crores
- OFS : None
- Allotment date : 01 – Mar – 2024
- Listing date : 05 – Mar – 2024
- Promoter holding : 94.74 % ( Pre – Issue )
- Name of registrar : Bigshare Services Private Limited
- IPO reservation – QIB – 50% | NII – 15% | Retail – 35%
GMP(Expected): ₹85 ( Expected Listing Gains of 49.7 %)
Financial Information :
PLATINUM INDUSTRIES LIMITED CONSOLIDATED STATEMENT OF PROFIT AND LOSS
| All amounts are in Rs. Millions except EPS | For the year ended March 31, 2023 | For the year ended March 31, 2022 | For the year ended March 31, 2021 |
|---|---|---|---|
| Total Income | 2,325.55 | 1,892.38 | 895.30 |
| Total Expenses | 1,816.19 | 1,652.78 | 828.35 |
| Profit before tax | 509.36 | 239.60 | 66.95 |
| Profit for the period | 375.84 | 177.48 | 48.15 |
| Total Comprehensive Income | 374.10 | 178.66 | 47.02 |
| Earnings per equity share | 9.42 | 4.41 | 1.24 |
Financial and Operational Performance Indicators :
For the period Six Months ended September 30, 2023
- Operating EBITDA Margin (%) – 26.36%
- Net profit Ratio/ Margin (%) – 18.59
- Return on Equity (ROE) (%) – 31.39
- Debt To Equity Ratio – 0.13
- Interest Coverage Ratio – 19.88
- ROCE (%) – 28.83%
- Current Ratio – 2.52
- Net Capital Turnover Ratio – 2.07
Objects of Issue:
- Investment in Subsidiary, Platinum Stabilizers Egypt LLC (“PSEL”) for financing its capital expenditure requirements in relation to the setting up of a manufacturing facility for PVC Stabilizers at SC Zone, Governorate of Suez, Egypt
- Funding of capital expenditure requirements of Company towards setting up of a manufacturing facility for PVC Stabilizers at Palghar, Maharashtra, India
- Funding working capital requirements of Company
- General corporate purposes