Mumbai-based stabiliser manufacturer Platinum Industries will float its public issue as a complete issue of fresh shares on February 27 and the anchor book will open for a day on February 26.
Key Details
1.) IPO Timeline
The IPO subscription window opens on February 27, 2024, and closes on February 29, 2024.
2.) Pricing Range
The price band for the IPO is set at Rs 162-171 per share.
3.) Offering Details
Platinum Industries aims to raise Rs 235.32 crore through the issuance of 1,37,61,225 equity shares, exclusively as fresh issue without any offer-for-sale component. Promoters currently hold a 94.74 percent stake in the company, while public shareholders, including Dr. Horst Michael Schiller, hold the remaining 5.26 percent. Additionally, a pre-IPO placement of 9,10,700 equity shares has been allocated through private placement at an issue price of Rs 157 per share.
4.) Objectives of the Offering
Proceeds from the IPO will primarily be utilized for establishing a manufacturing facility for PVC stabilizers in the Governorate of Suez, Egypt, for Platinum Stabilizers Egypt LLC, at a cost of Rs 67.72 crore. Another Rs 71.26 crore will be allocated for setting up a PVC stabilizers manufacturing facility in Palghar, Maharashtra. Additionally, Rs 30 crore will be earmarked for working capital requirements, with the remainder allocated for general corporate purposes.
5.) Lot Size
Investors can bid for a minimum of 87 equity shares and in multiples thereof. This implies a minimum investment of Rs 14,094 (87 shares x Rs 162 lower price band). At the upper end of the price range, the minimum investment will be Rs 14,887.
6.) Company Profile
Established in August 2016, Platinum Industries Limited specializes in the production of stabilizers, including PVC stabilizers, CPVC additives, and lubricants. Its products cater to various industries such as PVC pipes, electrical wires, PVC profiles, and packaging materials.
7.) Financial Highlights
For the fiscal year 2023, Platinum reported a revenue of Rs 234 crore, marking a 24.5 percent increase from the previous year’s figure of Rs 188.1 crore. Net profit for FY23 stood at Rs 37.5 crore, compared to Rs 17.8 crore in FY22. As of September 30, 2023, the company reported a revenue of Rs 129 crore and a net profit of Rs 23 crore.
8.) Lead Managers
Unistone Capital Pvt Ltd is the book-running lead manager for the IPO, while Bigshare Services Pvt Ltd will serve as the registrar.
9.) Key Risks
i.) Reliance on a single manufacturing facility in Palghar, Maharashtra, poses a risk in case of local disturbances or natural disasters.
ii.) Dependency on a few customers for a significant portion of revenue, without long-term contractual arrangements, could impact operations.
iii.) Expansion into new regions without prior experience may pose challenges in establishing a distributor and customer network.
iv.) Vulnerability to downturns in industries where products find application, such as PVC pipes and electrical wires.
10.) Listing Date
Platinum Industries IPO is expected to be listed on both BSE and NSE, with a tentative listing date set for Tuesday, March 5, 2024.
