Platinum Industries Limited

Platinum Industries Limited -IPO DETAILS 

Company Overview 

Platinum Industries operates as a specialty chemical company specializing in the production of PVC stabilizers. These additives are crucial in enhancing the durability and performance of PVC-based products by improving their thermal stability, enabling them to withstand heat without significant degradation. Ranked as the third-largest manufacturer of PVC stabilizers domestically, the company holds a market share of 13.00%. Its product portfolio includes PVC stabilizers, CPVC additives, and lubricants, catering to various industries such as PVC pipes, electrical wires, cables, PVC foam boards, and packaging materials.  

CPVC additives enhance PVC's resistance to chemicals and corrosive substances, making it suitable for applications involving hot water handling. Lubricants play a vital role in PVC formulations by reducing friction between molecules and lowering melt viscosity. The company's manufacturing facility spans 21,000 square feet in Palghar, Maharashtra, strategically located near JNPT (Nhava Sheva) Port for convenient import of raw materials and export of finished products internationally. 

Objective of the IPO 

Here are a few quick reasons why company is going public:  

1. An amount of Rs. 74 Cr will be allocated for establishing a subsidiary in Egypt and constructing a manufacturing facility in the region. 

2. Additionally, Rs. 79 Cr will be allocated for funding Capital Expenditure aimed at establishing the company's second manufacturing facility in Palghar, Maharashtra.  

3. Furthermore, Rs. 30 Cr will be allocated to meet the Company's Working Capital requirements. 

4. Allocation of funds for general corporate purposes.   

Company Financials 

Key Performance Indicator 

Pros 

1. The Company has demonstrated consistent financial performance, evolving from a two-product portfolio to a diverse range of offerings. Revenues and net profits have exhibited robust growth, with a Compound Annual Growth Rate (CAGR) of 62% and 179% respectively since FY21. 

2.  Moreover, the Company boasts strong research and development capabilities, facilitated by its in-house R&D facility spanning 3352 square feet. Equipped with modern laboratory equipment and staffed by skilled researchers, this facility is dedicated to developing innovative products. 

3.  In addition to its impressive growth trajectory, the Company maintains a diversified product portfolio. With over 400 grades developed solely for PVC applications, the Company effectively caters to the varied requirements of its customer base. Furthermore, revenue streams are diversified across PVC, CPVC, lubricant, and trading businesses. 

4. The industry's specialized nature erects high barriers to entry, characterized by substantial differentiation between products, extensive R&D requirements, and a necessity for technical expertise. Consequently, new entrants encounter significant challenges when attempting to penetrate the market. 

Cons 

1. Operating solely from a single manufacturing facility leaves the Company vulnerable to various risks such as natural disasters, social unrest, or service disruptions, all of which could significantly impact revenues. 

2.  Moreover, the Company's expansion into new territories, particularly with the establishment of a facility in Egypt, introduces inherent risks associated with venturing into unfamiliar economies, especially considering the Company's previous focus primarily on the Indian market. 

3.  Furthermore, the Company faces revenue concentration risk, with approximately 78% of its revenue derived from its top 5 customers and 86% from its top 10 customers. This concentration leaves the Company susceptible to potential earnings deterioration in the event of the loss of a single large customer. 

How to Apply for this IPO 

1. Go to https://ipo.adityatrading.in/ 

2. Enter your Client ID 

3. Enter the OTP received in your registered mobile number. 

4. Choose the IPO and click on apply button. 

5. Enter the UPI ID, Quantity, and Cut off the price. 

6. Click on submit button 

7. Confirm the mandate request received on your phone by entering the UPI Pin. 

You can also watch our youtube video on “How to Apply on IPO” by clicking on the link “https://www.youtube.com/watch?v=1qOI8dCpl1I&ab_channel=ATS”