Platinum Industries IPO Review

Platinum Industries Limited specializes in producing stabilizers. The company manufactures PVC stabilizers, CPVC additives and lubricants. Platinum Industries IPO envisages to raise Rs 235.32 crores. The issue is entirely a fresh issue of 1.38 crore shares

IPO opensFeb 27, 2024
IPO ClosesFeb 29, 2024
IPO Size (Rs.)₹235.32 Cr
IPO Size (shares)13,761,225 shares
BreakupFresh issue only
Face Value:₹ 10
IPO Price in Rs :₹162 – ₹171
Minimum Lot87 Shares
Listing AtNSE , BSE
QIB50%
NII Quota~15%
Retail Quota~35%
 Lead ManagerUnistone Capital Pvt Ltd
Registrar Bigshare

About Platinum Industries:

  • They are a multi-product company engaged in the business of manufacturing stabilizers. Their business segment includes PVC stabilizers, CPVC additives and lubricants.
  • PVC stabilizers are chemical additives used in the production of polyvinyl chloride (PVC) based products to enhance its performance and durability. They help prevent the degradation of PVC when exposed to high temperatures during processing or end-use applications. CPVC additives are chemical substances added to enhance the properties and performance of chlorinated polyvinyl chloride (CPVC) materials.
  • Lubricants are an integral part of PVC formulation. They manufacture both internal and external lubricants.
  • Their products find their application in PVC pipes, PVC profiles, PVC fittings, electrical wires and cables, SPC floor tiles, Rigid PVC foam boards, packaging materials etc.
  • Platinum Industries Ltd ‘ manufacturing facilities are in Palghar, Maharashtra, which is about 85 km from Mumbai.
  • The first plant was set up in 2016 in a plot area of 1,500 square meters.
  • Platinum Industries Ltd, has a monthly capacity including lubricant is of 3,000 tons (36,000 tons per year).
  • Additionally, their overall PVC stabilizer capacity includes a lubricant component with a capacity of 3,850 metric tons per year. Products manufactured in this plant are calcium zinc stabilizers, organic-based stabilizers, hybrid stabilizers, low-lead stabilizers, and boosters.
  • The other products manufacturing facility is for Metallic stearates and polyethylene waxes in another facility (Platinum Polymer & Additives,
  • group company) with plot area of 10,000 square meters, which is also located in Palghar close to the stabilizers plant. Products manufactured are calcium stearate, zinc stearate, magnesium stearate, barium stearate and.
  • The Promoters of Company are Krishna Dushyant Rana and Parul Krishna Rana

Financials: Platinum Industries IPO

Particulars / Rs. Cr.2023(06)2023(12)2022(12)2021(12)
Total Income123.734232.555189.23889.53
Restated PAT22.83537.58417.7484.815
Share Capital40.25340.2531.0531.053
Net Worth85.03761.87922.3374.472
Basic & Diluted EPS (in Rs.)5.739.424.411.24
Net asset value21.1315.37212.242.48
Total borrowings11.45817.42924.2423.261
Post issue Share Capital55   
FV10.0   
IPO price171.0   
EPS Fy236.8   
PE Fy2325.0   
EPS Fy24 (annualized)8.3   
PE Fy24  (annualized)20.6   
Market cap in cr939.2   
Market cap / Sales4.04   

Platinum Industries IPO: Anchors

(To be updated)

Platinum Industries IPO: Salient Points

  • Company operates in the speciality chemicals industry.
  • The Indian specialty chemical industry is expected to reach $48.1 billion by fiscal 2026, growing at 8.3% CAGR over 2023-26..
  • As of March 31, 2023, they currently operate from one manufacturing facility at Palghar, Maharashtra with an aggregate estimated installed production capacity of 7,508.57 MTPA for lead based stabilizers, 19,382.98 MTPA for calcium zinc based and calcium organic stabilizers (including flakes and powder), 4,380.00 MTPA for lubricant and 4,805.69 MTPA for CPVC Additives.
  • Non-lead-based product (PVC stabilizers) sales have increased, while lead-based sales have decreased between FY18 to FY23. In FY23, non-lead-based product sales accounted for 83% of total sales. Company is focusing on growth of non-lead category as the going forward the usage of lead stabilizers is expected to decline due to new regulations unveiled by Ministry of Environment and Forests (MoEF) in 2022 which prohibits lead-based stabilizers in PVC pipes going forward.
  • Product breakup
ProductHY 24, Sales (Rs. Million)% of Total
PVC Stabilizers707.5559.11
CPVC Additives47.483.97
Lubricants358.8229.97
Total1,113.8593.05

  • Company intends to utilize the fresh issue portion of Net as follows:
ParticularsEstimated costAmount already deployed Jan23, 24Amount to be financed from Net Proceeds
Investment in Platinum Stabilizers Egypt LLC for financing its capital expenditure requirements in relation to the setting up of Proposed Facility 1 (Egypt)737.5422.01677.21
Funding of capital expenditure requirements of our Company towards setting up of the Proposed Facility 2 (Palghar)792.7381.53712.61
Funding working capital requirements of our Company300.00300.00
General corporate purposes [●][●][●]
  • In order to cater to the growing market demand for products, specifically for PVC stabilizers, and expand presence in new regions, they are in the process of deepening presence in the MENA region through a subsidiary Platinum Stabilizers Egypt LLC by setting up the Proposed Facility 1 in Egypt by utilizing portion of the Net Proceeds of up to ₹ 677.21 million
  • Peers:
Company/ Rs. Cr.CMP (Rs.)RevenuesNet ProfitNPMRONWPEMcap/Sales
Platinum Industries171231.537.616.2%61.26%25(20.6)4.04
Supreme Petrochem7525287.24989.4%27.02%37.82.79
Apcotex Industries4761079.910810.0%22.68%39.92.31
  • Revenue from operations increased to Rs 2,342.1 million in fiscal 2023 from Rs 787.7 million in fiscal 2020, i.e. CAGR of 43.8%.
  • Gross profit increased to Rs 877.3 million in fiscal 2023 from Rs 123.2 million in fiscal 2020, which was a CAGR
    of 92.4%.
  • EBITDA margin strengthened to 22.1% in fiscal 2023 from 4.4% in fiscal 2020,
  • PAT margin improved significantly between fiscals 2020 and 2023,
  • Company’s major clientele include marquee pipe manufacturers in India such as The Supreme Industries, Prince Pipes & Fittings, Astral Pipes, Ashirvad Pipes, Vectus Industries, Ajay Pipes, Surya Plast, Samaro Global, Pranij Heights, HIL Ltd, Tirupati Structurals and Apollo Pipes, Signet Group, Texmo Pipes and Products.
  • Due to an issue < 250 cr the scrip shall be in T2T on listing. Hence it may have some element of speculation on listing.
  • Such small size issues many time attract huge subscriptions.
  • Platinum Industries IPO is coming at a PE ratio of 25x(fy23 earnings) and 20.6x (fy24 annualized earnings)
  • I intend to apply in Platinum Industries IPO subject to availability of funds. Company has shown good growth and pursuing growth opportunities in new products and geographies.
  • GMP as reported on social media has been Rs. 90 .
  • Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.

Leave a Reply