Founded in August 2016, Platinum Industries specializes in the manufacture of stabilizers. The company produces lubricants, CPVC additives, and PVC stabilizers.
Latest Market Updates : On Tuesday, February 27, the public bidding for Platinum Industries’ Rs 235.32 crore initial public offering (IPO) will begin. Interested parties may submit an application for the offering for a minimum of 87 equity shares and any multiples thereafter, at a price range of Rs 162-171 per share. The final day of the IPO is Thursday, February 29.
Regarding the manufacturer of appliances, analysts are generally optimistic due to its excellent growth potential, worldwide market expansion, fair values, and respectable track record.
“The company is valued at a P/E of 25 times in the upper price band, with a market cap of Rs 939.21 crore once equity shares are issued and a return on net worth of 61.26 percent. The IPO note stated, “We think the company’s valuations are fairly priced and recommend a’subscribe for long term’ rating to the IPO.”
Founded in August 2016, Platinum Industries specializes in the manufacture of stabilizers. The company produces lubricants, CPVC additives, and PVC stabilizers. Products from the company are utilized in a variety of applications, including packaging materials, rigid PVC foam boards, SPC floor tiles, electrical wires and cables, PVC fittings, and pipes.
Completely new shares—1,37,61,225—are being sold as part of the IPO. By allocating 41,28,237 shares at a price of Rs 171 apiece, Platinum Industries was able to raise Rs 70.60 crore from seven anchor investors: Baring Private Equity India AIF 2, Elara India Opportunities Fund, Saint Capital Fund, Leading Light Fund VCC, Antara India Evergreen Fund, NAV Capital Emerging Star Fund, and Astorne Capital VCC Arven.
With the pipes and fittings category expected to increase at a compound annual growth rate of 8–9% between 2022 and 2027, the PVC market is expected to experience significant expansion. Demand will be fueled by the MENA region’s construction industry growth, which are supported by programs like Saudi Vision 2030, according to an IPO note from Arihant Capital Markets.
The need for PVC stabilizers will rise as a result of investments made in a number of industries. Strong growth possibilities for PVC-related applications are highlighted by the specialty chemicals industry’s projected global expansion. With a’subscribe’ tag, it stated, “The issue is valued at an EV/EBITDA of 12.81 times based on FY23 EBITDA of Rs 53.85 crore and P/E of 18.15 times based on FY23 EPS of Rs 9.42.”
The net proceeds of the issue will be applied to working capital needs, capital expenditure requirements for the establishment of a PVC stabilizer manufacturing facility in Palghar, Maharashtra, investment in the subsidiary Platinum Stabilizers Egypt, and general corporate purposes.
Situated in Palghar, the production plant of Platinum Industries has 21,000 square feet of land. As of July 2023, the corporation operated twelve distribution centers around India.
Platinum Industries intends to grow its production capacity in order to serve a wider global market. The business is now establishing a new production plant in Egypt. According to Vishnu Kant Upadhyay, Assistant Vice President – Research & Advisory at Master Capital Services, the company is looking to expand the use of its goods to serve to consumers across multiple industries and help in boosting the market share.
“To improve efficiency and expand its manufacturing capacity for non-lead-based stabilizers, the company is now building a second facility in Palghar, Maharashtra. With a medium- to long-term outlook, investors are welcome to participate in this IPO,” he stated.
According to Globe Capital, Platinum Industries offers a diverse product portfolio that serves a range of industries, stable financial performance, and a commitment to sustainability and research and development. “Other benefits include high entry barriers, high-quality products, and qualified, experienced management. The value of the problem is 18.5 times. The medium- to long-term incentives are available for subscribers,” it continued.
In its initial public offering (IPO), Platinum Industries allocated 50% of its shares to qualified institutional buyers (QIBs), 15% to non-institutional buyers (NIIs), and 35% to retail buyers. Bigshare Services is the registrar, while Unistone Capital is the only book running lead manager. The shares will make their debut on the BSE and NSE on Tuesday, March 5.
Disclaimer : The above article is meant for informational purposes only, and should not be considered as any investment advice.
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