March 5, 2024
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Platinum Industries IPO GMP, Details, Guidance, Subscription Status, allotment @ Chanakyanipothi.com
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Table of Contents
- GMP
- Reviews
- Subscription
- Allotment
Post Listing Review:
On 5th March, the scrip is listed at Rs. 225, compared to its issue price of Rs. 171, a premium of 31.58%. The listing has been below the expectations of the grey market traders.
What are the promoters of Platinum Industries IPO?
The promoters of the Company are Krishna Dushyant Rana and Parul Krishna Rana.
What are the Objects of Platinum Industries IPO?
The Issue comprises a Fresh Issue by the Company.
The Net Proceeds from the Issue are proposed to be utilized by the company for the following objects:
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’
Funding of capital expenditure requirements of the company towards setting up of a manufacturing facility for PVC Stabilizers at Palghar, Maharashtra, India
Funding working capital requirements of the Company; and
General corporate purposes.
What is the business of Platinum Industries ?
Platinum Industries is a multi-product company engaged in the business of manufacturing stabilizers. Its business segment includes PVC stabilizers, CPVC additives and lubricants. It operates in the speciality chemicals industry. Its 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.The Indian speciality chemicals industry, accounting for ~26% of the overall chemicals industry (excluding pharmaceuticals), was worth $29 billion in fiscal 2020. The industry expanded at 6.7% CAGR over fiscals 2015-20, driven by an increase in domestic offtake from various end-user industries and rising exports. However, in fiscal 2021, the industry declined 3.4% on-year because of a slowdown in economic activity and the consequent decline in demand from end-user industries. The industry exhibited recovery in fiscal 2022 with an estimated worth of $33.5 billion. The Indian speciality chemical industry is expected to reach $51 billion by fiscal 2026, growing at 11.1% CAGR over 2022-26.
According to the CRISIL Report, it is the third largest player of PVC stabilizer in terms of sales with an 8.00% market share for the financial year 2021-22 in the domestic market.
Its Manufacturing Facility is located at Palghar, Maharashtra which is spread across an aggregate parcel of land admeasuring about 21,000 sq. ft.Its Manufacturing Facility has obtained ISO 9001:2015 certification for quality management systems.
The company through its subsidiary Platinum Stabilizers Egypt LLC, intend to establish a project inEgypt, which shall be spread over an aggregate parcel of land admeasuring about 10,000 sq. mtrs and shall venture into manufacturing of PVC stabilizers (both lead based and non-lead based). Further, it is in a processof setting up a new manufacturing facility at Palghar, Maharashtra which shall be spread across an aggregate parcel of land admeasuring about 14,800 sq. mts. which shall be used to manufactureof PVC stabilizers (non-lead based).
For more information, click https://platinumindustriesltd.com/
Platinum Industries IPO GMP, Particulars & Guidance
| Platinum Industries IPO Details | |
| IPO opens on | 27 February 2024 |
| IPO closes on | 29 February 2024 |
| Issue Type | Book Built Issue IPO |
| Issue Size | 13761225 Sh /Rs 235.32 Cr |
| * Fresh Issue | 13761225 Sh /Rs 235.32 Cr |
| * Offer for Sale | – Sh /Rs – Cr |
| Face Value per share: | Rs. 10 |
| Price Band | Rs. 162-171 |
| Retail Discount | Rs 0 per share |
| Employee discount | Rs.? per share |
| Retail Lot Size | 87 Shares |
| Listing will at | BSE, NSE |
| Shares offered in Platinum Industries ? | Shares | Rs. in Cr |
| QIB (50 %) | 6880612 | 116.26 |
| NII (15 %) | 2064184 | 34.88 |
| RII (35 %) | 4816429 | 81.38 |
| Employees | – | |
| Total Shares | 13761225 | 232.52 |
| Retail portion will be oversubscribed by | ? Forms. | |
| How to apply in Platinum Industries IPO ? | Amount Rs. | |
| Min Retail Application | 87 Sh | 14877 |
| Max Retail Application | 1131 Sh | 193401 |
| Small HNI (Min) application | 1218 Sh | 208278 |
| Small HNI (Max) application | 5829 Sh | 996759 |
| Big HNI Application | 5916 Sh | 1011636 |
| What is the timetable of Platinum Industries IPO? | |
| IPO opens on | 27 February 2024 |
| IPO Closes on | 29 February 2024 |
| IPO Allotment on | 1 March 2024 |
| Unblocking of ASBA | 4 March 2024 |
| Credit of Shares | 4 March 2024 |
| Listing on | 5 March 2024 |
| Registered Office of Platinum Industries | |
| Platinum Industries Limited Unit No. 841, 4th Floor, Solitaire Corporate Park-8, Andheri Kurla Road Andheri (E), Mumbai –400093 | |
| Who are the Lead Managers of Platinum Industries IPO? Unistone Capital Pvt Ltd | |
| Registrar to IPO | |
| Bigshare Services Pvt Ltd |
| Platinum Industries IPO Financial & Analytical Ratios | ||||
| Year | Total Income | Net Profit | EPS | RoNW |
| Rs. in Cr | Rs.in Cr | Rs. | % | |
| 2020-21 | 89.53 | 4.82 | 1.24 | 107.6 |
| 2021-22 | 189.24 | 17.75 | 4.41 | 79.45 |
| 2022-23 | 232.56 | 37.58 | 9.42 | 61.26 |
| Book Value of the Share on 31.03.2023 | Rs. | 15.37 | ||
| BV of the Share after the FPO | Rs. | ? | ||
| Offer Price at Cap | Rs. | 171 | ||
| Platinum Industries IPO Ratio Analysis | |
| Price /EPS | 18.52 |
| Price/Book Value Ratio | 11.12 |
| Price/BV after IPO | ? |
How Platinum Industries IPO compares with the Peers?
Peer Comparison.
There are no listed companies that exclusively undertake the manufacturing of PVC stabilizers and CPVC additives. Hence, basis factors such as the scale of the business, exposure to the Construction and industrial applicant industry, (as speciality chemicals industry contributes the majority of revenue from operations for the Company), a proxy set of listed peers of Supreme Petrochem Ltd and Apcotex Industries Ltd (the “Industry Peers”) have been identified for the Company.
| As on date of DRHP | FV | Total | PE |
| Rs. | Income | Ratio of | |
| Rs. In Cr | |||
| Platinum Industries | 10 | 231.48 | 18.52 |
| Supreme Industries | 5 | 5287.21 | 16.57 |
| Apcotex Industries | 2 | 1079.93 | 26.56 |
# This is only coverage of News related to Grey Market. We do not deal in grey market premium, nor we recommend dealing in Grey Market. Investment decision based on Grey Market trends can be faulty.
Platinum Industries IPO Guidance
Platinum Industries is a multi-product company engaged in the business of manufacturing stabilizers. Its business segment includes PVC stabilizers, CPVC additives and lubricants. It operates in the speciality chemicals industry. Its 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.
Size: The size of the IPO is just Rs. 216.05 Cr. Retail portion is only Rs.75.62 Cr. So huge oversubscription is possible.
Guidance: The Shares are offered at very attractive valuation of 16.67 PE multiple. However compared to the valuation of peer companies, the turnover of this company is very small. Accordingly, it may not command the valuation enjoyed by Supreme Industries etc. At present, the market considers huge oversubscription and impeding interest-costs. So the premium in the grey market has moved up to Rs. 100 Vs. Issue price of Rs. 171. Chances of allotment will be tough. Do remember, the existing premium may not be reflected in the gains at the time of listing. Apply
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