Platinum Industries Limited IPO

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A prominent multi-product manufacturer in the specialty chemicals industry, focusing on PVC stabilizers, CPVC additives, and lubricants. Products are essential in various applications including PVC pipes, profiles, fittings, electrical wires, cables, SPC floor tiles, and rigid PVC foam boards. Positioned as the third-largest PVC stabilizer manufacturer in the domestic market with a 13% market share for FY 2022-23, according to a CRISIL Report.

Industry Context

  • The Indian specialty chemicals industry, excluding pharmaceuticals, was valued at $29 billion in fiscal 2020, with a growth trajectory of 6.7% CAGR from 2015-2020.
  • Despite a 3.4% decline in fiscal 2021 due to economic slowdowns, the industry rebounded to $37.9 billion in fiscal 2023 and is expected to reach $48.1 billion by fiscal 2026, growing at an 8.3% CAGR.

Product Innovation and Shift in Industry Trends

  • Transitioning from lead-based to calcium zinc-based and calcium organic-based PVC stabilizers in response to health and environmental concerns.
  • CPVC additives enhance the heat and chemical resistance of CPVC materials, making them suitable for a variety of applications including plumbing and industrial pipes.
  • Lubricants, such as PE Wax and Lubpack, reduce friction in PVC formulations, aiding in the manufacturing process.

Distribution and Manufacturing Capabilities

  • A well-established distribution network across India, coupled with trading activities in titanium dioxide and PVC/CPVC resin.
  • The manufacturing facility in Palghar, Maharashtra, boasts ISO 9001:2015 certification and proximity to JNPT Port for efficient raw material import and product export.

Research and Development

Investment in R&D to foster innovation and sustainability, with a dedicated in-house facility in Palghar for process and product development. Technical collaboration with HMS Concept E.U., leveraging the expertise of Dr. Horst Michael Schiller, a renowned PVC industry scientist.

Expansion and Growth Plans

  • Plans to establish a new project in Egypt and a manufacturing facility in Palghar, Maharashtra, focusing on both lead-based and non-lead-based PVC stabilizers.

Conclusion

The company’s strategic focus on quality, innovation, and market expansion, backed by strong leadership and a solid financial performance, positions it well for future growth in the specialty chemicals sector, particularly in the PVC stabilizer market.

Objects of the Platinum Industries Limited IPO:

The Net Proceeds from the Issue are proposed to be utilized by the company for the following objects: i. Investment in the subsidiary, Platinum Stabilizers Egypt LLC ("PSEL"), for financing its capital expenditure requirements about the setting up of a manufacturing facility for PVC Stabilizers at SC Zone 'Governorate of Suez Egypt' ii. Funding of capital expenditure requirements of the company towards setting up of a manufacturing facility for PVC Stabilizers at Palghar, Maharashtra, India iii. Funding working capital requirements of our Company; and iv. General corporate purposes.
DRHP of Platinum Industries Limited IPO
RHP of Platinum Industries Limited IPO

Platinum Industries Limited IPO Details:

Open Date: Feb 27 2024
Close Date: Feb 29 2024
Total Shares: 13,761,225
Face Value: ₹ 10 Per Equity Share
Issue Size: 235.32 Cr.
Lot Size: 87 Shares
Issue Price: ₹ 162 - 171 Per Equity Share
Listing At: NSE,BSE
Listing Date: Mar 05 2024

Promoters And Management:

Krishna Dushyant Rana, aged 39 years, is the Chairperson and Managing Director of the Company. He holds a bachelor’s degree in commerce from Mumbai University. He has over 17 years of experience in the chemical industry. He has been associated with the Company since its incorporation as Chief Executive Officer and now redesignated as the Managing Director. He oversees various aspects of the Company’s business including planning, finance, monitoring and execution. He has been instrumental in restructuring the operations and integrating global practices. Parul Krishna Rana, aged 40 years, is an Executive Director of the Company. She has been associated with the Company since its incorporation. She has completed her higher secondary education from Maharashtra State Board and holds a Diploma in Apparel Manufacturing and Design from Shreemati Nathibai Damodar Thackersey Women’s University, Mumbai. She oversees the Company’s public relations, brand image and setting standards for design and branding for the Company’s growth, while also building up a balanced team by roping in talent. Anup Singh, aged 33 years,is the Executive Director of the Company and has been associated with the Company since its incorporation as the Head of Production. He has been appointed as the Executive Director on the Board of the Company with effect from April 14, 2023. He holds Bachelor of Technology degree in Chemical Engineering from Uttar Pradesh Technical University. He has over a decade of experience in handling production processes in the chemical industry. His key areas of experience are operational management and quality control.

Financials of Platinum Industries Limited IPO:

A. Balance Sheet
Particular (In Million) Mar-21 Mar-22 Mar-23
Equity Share Capital 10.53 10.53 402.53
Reserves 34 213 216
Borrowings 33 242 174
Trade Payables 194 275 138
Other Liabilities 51 104 280
Total Liabilities 278 621 593
Net Block 36 44 292
Capital Work in Progress 0.2 0 31
Other Assets 24 33 66
Total NC Assets 61 78 389
Receivables 166 486 311
Inventory 60 155 271
Cash & Bank 12 42 155
Other Assets 23 84 86
Face value 10 10 10
B. Profit & Loss Statement
Particular (In Million) Mar-21 Mar-22 Mar-23
Sales 893 1,882 2,315
Raw Material Cost 590 873 1,283
Purchases of Stock In Trade 115 508 136
Change in Inventory 1 -4 -27
Employee Cost 33 38 82
Other Expenses 78 213 303
Other Income 3 11 11
Depreciation 7 9 18
EBIDTA 78 264 549
EBITDA Margin 8.77% 14.05% 23.73%
Interest 4 16 22
Profit before tax 67 240 509
Tax 19 62 134
Net profit 48 177 376
NPM (%) 5.38% 9.38% 16.16%
C. Cash Flow Statement
Particular (In Million) Mar-21 Mar-22 Mar-23
Cash From Operating Activity
Profit From Operation 78 270 546
Receivable -15 -327 174
Inventory -3 -95 -116
Payable -21 81 -136
Other WC Items 9 -52 55
Working Capital Changes -29 -393 -23
Direct Taxes -16 -26 -139
Net Cash Inflow from Operating Activity 33 -149 384
Cash from Investing Activity
Fixed assets purchased -16 -11 -268
Fixed assets sold 2 0 0
Investment in subsidiaries 0 -0.02 0
Other investing items 2 -38 -99
Net cash inflow from investing activities -13 -50 -367
Cash from Financing Activity
Proceeds from borrowings 34 360 8
Repayment of borrowings -11 -150 -77
Intrest paid fin -2 -14 -19
Other financing items -33 -5 91
Net Cash Flow 8 -8 21

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Platinum Industries Limited 231 38 6.84 25.0 171 939
Supreme Petrochem Ltd 5287 498 26.49 37.8 752 14,148
Apcotex Industries Ltd 1,080 108 20.82 39.9 476 2,467
* All the data is as per FY23.

Lead Manager of Platinum Industries Limited IPO:

  1. Unistone Capital Pvt Ltd

Registrar of Platinum Industries Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Platinum Industries Limited Unit No. 841, 4th Floor, Solitaire Corporate Park-8, Andheri Kurla Road Andheri (E), Mumbai –400093 Phone: +91 7304538055 Email: cs@platinumindustriesltd.com Website: https://platinumindustriesltd.com/

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