Platinum Industries IPO: 10 things to know before subscribing to the Rs 235-cr issue

2.) Price Band

The price band for the issue has been fixed at Rs 162-171 per share.

3.) Offer Details

The company aims to raise Rs 235.32 crore through the offer. Promoters hold a 94.74 percent stake in the company, while public shareholders including Dr Horst Michael Schiller have 5.26 percent shares. Platinum Industries has allocated a pre-IPO placement of 9,10,700 equity shares through a private placement at an issue price of Rs 157 per share. The promoters of the company are Krishna Dushyant Rana and Parul Krishna Rana.

4.) Objectives of the Issue

Platinum Industries will earmark Rs 67.72 crore to establish a manufacturing facility for PVC stabilisers for its subsidiary, Platinum Stabilizers Egypt LLC, located in the Governorate of Suez, Egypt. Additionally, Rs 71.26 crore will be allocated for the setup of another manufacturing facility for PVC stabilizers in Palghar, Maharashtra.

Additionally, Rs 30 crore will be dedicated to meeting working capital requirements, with the remaining funds earmarked for general corporate purposes.

5.) Lot Size

Investors can bid for a minimum of 87 equity shares and in multiples thereof. Hence the minimum investment by retail investors would be Rs 14,094 (87 (Lot size) x 162 (lower price band)). At the upper end, the bidding amount will increase to Rs 14,887.

6.) Company Profile

Platinum Industries Limited, established in August 2016, is a specialized firm focusing on the production of stabilizers. The company engages in the manufacturing of PVC stabilizers, CPVC additives, and lubricants.

The range of products offered by the company finds application in various industries, including PVC pipes, PVC profiles, PVC fittings, electrical wires and cables, SPC floor tiles, Rigid PVC foam boards, and packaging materials, among others.

7.) Financials of the Company

For the fiscal year 2023, Platinum reported a revenue of Rs 234 crore, up 24.5 percent from the same period last year when the company's revenue stood at Rs 188.1 crore. Net profit during the same period came in at Rs 37.5 crore, higher than Rs 17.8 crore reported in FY22.

For the period ended September 30, 2023, the company clocked a revenue of Rs 129 crore, and the net profit during the same period stood at Rs 23 crore.

8.) Lead Managers

Unistone Capital Pvt Ltd is the book-running lead manager of the Platinum Industries IPO, while Bigshare Services Pvt Ltd is the registrar for the issue.

9.) Key Risks

i.) The company operates out of a single manufacturing facility, which is located at Palghar, Maharashtra. Any localised social unrest, natural disaster breakdown of services or any other natural disaster in and around the area could have a material adverse effect on the business and financial condition.

ii.) The company is dependent on a few customers for a major part of its revenues. Further, it does not enter into long-term arrangements with customers and any failure to continue existing arrangements could adversely affect the results of operations and profitability.

iii.) The company is in the process of expanding operations and establishing a network of distributors and customers in regions where it does not have a significant presence or prior experience. Any failure to expand into these new regions can harm the business.

iv.) Platinum is dependent on the demand from the industries where products find application such as PVC pipes and tubes, PVC profiles, PVC fittings and electrical wires and cables. Any downturn in such industries could hurt the business of the company.

10.) Listing Date

Platinum Industries IPO will be listed on BSE and NSE with a tentative listing date fixed as Tuesday, March 5, 2024.