Platinum Industries
Book Building issueMainboard₹235 Cr issue
+33.33%
Listing gain over issue price
Issue size
₹235 Cr
1 lot at cut-off
₹14,877
Lot size
87shares
Open
27 Feb 2024
Close
29 Feb 2024
Allotment
01 Mar 2024
Listing
05 Mar 2024
Listing performance
Issue price
₹171
Listed at
₹228
Listing-day close
₹221.20
Latest price
₹224.74
Close on 23 Oct 2026
Listing gain
+33.33%
Return since issue
+31.43%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 27 Feb 2024 – 29 Feb 2024
- Listing date
- 05 Mar 2024
- Face value
- ₹10 per share
- Issue price
- ₹171 per share
- Lot size
- 87 shares
- Issue type
- Book Building issue
- Total issue size
- ₹235 Cr
- Market cap at offer price
- ₹939 Cr
- Promoter holding
- 94.74% → 70.99% pre-issue → post-issue
- ISIN
- INE0PT501018
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Unistone Capital Pvt.Ltd.
- Registered office
- Unit No.841, 4th Floor, Solitaire Corporate, Park-8, Andheri Kurla Road, Andheri (East), Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 41,28,237 | — | — |
Application size
Minimum 87 shares per lot, in multiples, at ₹171
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 87 | ₹14,877 |
| Retail (max) | 13 | 1,131 | ₹1,93,401 |
| S-HNI (min) | 14 | 1,218 | ₹2,08,278 |
| S-HNI (max) | 67 | 5,829 | ₹9,96,759 |
| B-HNI (min) | 68 | 5,916 | ₹10,11,636 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
41,28,237
Anchor portion
₹70.59 Cr
at ₹171 per share
Valuation and performance
Valuation at offer price
₹171 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 9.13 | 8.31 |
| P/E (×) | 18.73 | 20.58 |
| Price to book (×) | 11.13 | — |
| Market cap | — | ₹939 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 61.26%
- ROCE
- 56.85%
- Debt / equity
- 0.28
- PAT margin
- 9.32%
- NAV per share
- ₹15.37
- Price to book
- 11.13
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Platinum Industries
Platinum Industries Limited was incorporated as a Limited Liability Partnership on August 19, 2016, and converted into a private limited company on July 9, 2020, subsequently becoming a public limited company on June 2, 2023. The company manufactures chemical additives—specifically PVC stabilizers, CPVC additives, and lubricants—used to enhance the performance and durability of polyvinyl chloride (PVC) and chlorinated polyvinyl chloride (CPVC) based products. PVC stabilizers prevent degradation of PVC when exposed to high temperatures during processing or end-use applications. These products find application in PVC pipes, PVC profiles, PVC fittings, electrical wires and cables, SPC floor tiles, rigid PVC foam boards, and packaging materials. The company operates from a single manufacturing facility at Palghar, Maharashtra, and is expanding operations by setting up two proposed facilities—one in Egypt through its subsidiary Platinum Stabilizers Egypt LLC and another in Palghar, Maharashtra—to cater to growing market demand and establish presence in new regions, particularly the MENA region.
Company Analysis
from RHPPlatinum Industries Limited is a multi-product specialty chemicals company manufacturing PVC stabilizers, CPVC additives, and lubricants for the polyvinyl chloride and specialty chemicals industries.
Platinum Industries Limited was incorporated as a Limited Liability Partnership on August 19, 2016, and converted into a private limited company on July 9, 2020, subsequently becoming a public limited company on June 2, 2023. The company manufactures chemical additives—specifically PVC stabilizers, CPVC additives, and lubricants—used to enhance the performance and durability of polyvinyl chloride (PVC) and chlorinated polyvinyl chloride (CPVC) based products. PVC stabilizers prevent degradation of PVC when exposed to high temperatures during processing or end-use applications. These products find application in PVC pipes, PVC profiles, PVC fittings, electrical wires and cables, SPC floor tiles, rigid PVC foam boards, and packaging materials. The company operates from a single manufacturing facility at Palghar, Maharashtra, and is expanding operations by setting up two proposed facilities—one in Egypt through its subsidiary Platinum Stabilizers Egypt LLC and another in Palghar, Maharashtra—to cater to growing market demand and establish presence in new regions, particularly the MENA region.
specialty chemicalspolyvinyl chloride (PVC) productschemical additives
Objects of the Issue
- Investment in Platinum Stabilizers Egypt LLC for financing its capital expenditure requirements in relation to the setting up of the Proposed Facility 1 (Egypt) ₹677.21 million (to be financed from Net Proceeds) p.33
- Funding of capital expenditure requirements of our Company towards setting up of the Proposed Facility 2 (Palghar) ₹712.61 million (to be financed from Net Proceeds) p.33
- Funding working capital requirements of our Company ₹300.00 million p.33
- General corporate purposes p.33
- See 'Objects of the Issue' beginning on page 116 of this Red Herring Prospectus for details regarding the use of proceeds from the Issue p.87
- Investment in our Subsidiary, Platinum Stabilizers Egypt LLC (PSEL) for financing its capital expenditure requirements in relation to the setting up of a manufacturing facility for PVC Stabilizers at SC Zone, Governorate of Suez, Egypt (Proposed Facility 1 (Egypt)) ₹677.21 million p.123
- Funding of capital expenditure requirements of our Company towards setting up of a manufacturing facility for PVC Additives at Palghar, Maharashtra, India (Proposed Facility 2 (Palghar)) ₹712.61 million p.128
- Funding working capital requirements of our Company ₹300.00 million p.136
- General corporate purposes p.139
- Funding capex for the new non-lead based PVC stabilizers manufacturing facility at Palghar, Maharashtra p.197
- Funding capex for the new PVC stabilizers manufacturing facility in Egypt p.197
- Funding capex for Proposed Facility 1 in Egypt and Proposed Facility 2 in Palghar for manufacturing of PVC stabilizers p.340
Issue Structure
- Total Issue
- Up to ₹ [●] Million (for 13,761,225 Equity Shares after pre-IPO placement reduction)
- Fresh Issue
- Up to 13,761,225 Equity Shares of face value ₹10/- each
- Offer for Sale
- Not applicable
- Price Band
- ₹ [●] (Floor Price) to ₹ [●] (Cap Price) per Equity Share
- Lot Size
- [●] Equity Shares (minimum bid lot, to be decided)
- Face Value
- ₹10 per Equity Share
Business Model
The company earns revenue through the manufacture and sale of chemical additives (PVC stabilizers, CPVC additives, and lubricants) to customers in industries that produce PVC-based products such as pipes, profiles, fittings, electrical wires, and cables. Revenue is derived from domestic sales concentrated in the West, North, East, and South zones of India, as well as international sales. The company does not have long-term contractual arrangements with customers and operates primarily on a purchase order basis. Revenue concentration is significant, with the top 5 customers accounting for 81.84% of sales and top 10 customers accounting for 91.10% of sales as of September 30, 2023.
Business Segments
Chemical additives used in the production of polyvinyl chloride (PVC) based products to enhance its performance and durability, prevent degradation of PVC when exposed to high temperatures during processing or end-use applications
Chemical substances added to enhance the properties and performance of chlorinated polyvinyl chloride (CPVC) materials
Internal and external lubricants that are an integral part of PVC formulation
Stabilizers used in PVC manufacturing
Stabilizers used in PVC manufacturing
Stabilizers used in PVC manufacturing
Manufacturing of lead-based, calcium-zinc, organotin, and organic-based stabilizers used in PVC production for pipes, profiles, cables, films, and other rigid and flexible PVC applications
Manufacturing of additives for chlorinated polyvinyl chloride applications
Chemical additives used in the production of polyvinyl chloride (PVC) based products to enhance performance and durability. PVC stabilizers enhance thermal stability, prevent discoloration and degradation caused by UV exposure, and improve mechanical properties such as impact strength and tensile strength. The company manufactures lead-based, low lead/hybrid, and non-lead based (calcium-zinc and organic-based) stabilizers.
Chemical substances added to chlorinated polyvinyl chloride (CPVC) materials to enhance their properties and performance. CPVC additives improve heat and chemical resistance, allowing CPVC to withstand higher temperatures and exposure to corrosive substances. They are used in plumbing systems, industrial pipes, fire sprinkler systems, chemical processing plants, and laboratories.
An integral part of PVC formulation used for reducing friction between PVC molecules by lowering melt viscosity. Lubricants help with metal release effect, mold release effect, and reduction in friction. The company manufactures PE Wax and Lubpack series products.
Manufacturing of PVC stabilizers, CPVC additives, and lubricants for use in polyvinyl chloride and chlorinated polyvinyl chloride based products
Manufacturing of lead-based stabilizers for PVC plastics
Manufacturing of non-lead based stabilizers for PVC plastics
Manufacturing of CPVC additives that improve mechanical strength and toughness for hot water and chemical processing applications
Manufacturing of internal and external lubricants (PE Wax and Lubpack) for PVC formulation
Trading activities in associated commodity chemicals such as Titanium dioxide and PVC/CPVC resin
SWOT Analysis
Strengths
- • Multi-product manufacturing capability with diverse chemical additives portfolio(p.32)
- • Established technical collaboration agreement with international partner providing proprietary know-how(p.51)
- • Strong domestic market presence and customer relationships with concentrated revenue base(p.44)
- • Significant capacity expansion planned to address growing market demand(p.43)
- • Market-leading position with highest CAGR and margins among peers(p.195)
- • Third-largest PVC stabilizer manufacturer in India with strong domestic market share(p.195)
- • Strong R&D infrastructure with international technical collaboration(p.203)
- • Diversified product portfolio across multiple end-use applications(p.204)
- • High entry barriers in specialty chemicals industry provide competitive moat(p.205)
- • Strategic geographic positioning with proximity to major port and markets(p.196)
- • Consistent revenue and profitability growth over multi-year period(p.203)
- • Strong financial position with improving margins and debt reduction(p.203)
- • Third largest PVC stabilizer player with 8% market share(p.338)
- • Highest revenue CAGR among peers (53% FY20-FY22)(p.338)
- • Second highest gross margin among peers at 23.8% in FY22(p.338)
- • Multi-product portfolio including PVC stabilizers, CPVC additives and lubricants(p.338)
- • Strategic location near major port for raw material import and export(p.339)
- • ISO 9001:2015 certification for quality management systems(p.339)
- • In-house R&D facility with technical collaboration from internationally renowned scientist(p.339)
- • Established brand image with track record in distributor network(p.339)
- • Experienced promoters with over two decades in chemical industry(p.339)
- • Strong financial growth and profitability improvements(p.346)
- • Strong current ratio indicating good liquidity position(p.340)
- • Low debt-to-equity ratio showing conservative capital structure(p.340)
Weaknesses
- • Single manufacturing facility creating operational concentration risk(p.42)
- • Heavy dependence on limited customer base with no long-term contracts(p.44)
- • History of regulatory non-compliance and capacity violations(p.46)
- • Significant existing regulatory violations and pending compliance applications(p.45)
- • Majority of board directors lack listed company experience(p.56)
- • Promoter litigation history with past criminal sentencing(p.53)
- • Trademarks not fully registered with pending applications(p.56)
- • Dependence on promoter-guaranteed borrowings; risk of guarantee revocation(p.59)
- • High dependency on key personnel including managing director(p.59)
- • High employee attrition rates, particularly among other employees and labour(p.59)
- • Related party transactions with potential conflicts of interest(p.61)
- • Risk of inventory damage from improper storage and handling of hazardous materials(p.61)
- • Outstanding litigation against company and promoters with contingent liabilities(p.61)
- • Unsecured loans subject to demand recall at any time(p.62)
- • History of delayed payment of statutory dues despite recent regularity(p.63)
- • Significant working capital intensity with growing requirements(p.64)
- • Limited installed capacity information based on assumptions and estimates(p.67)
- • Heavy customer concentration with top 3 customers accounting for majority of revenue(p.199)
- • Significant supplier concentration with top 5 suppliers contributing substantial portion of raw material costs(p.200)
- • No long-term supply agreements with raw material vendors creating procurement risk(p.211)
- • Low capacity utilization across most product categories(p.209)
- • Reliance on leave and license arrangements for all material properties(p.215)
- • High reliance on few major customers(p.311)
- • Significant debt obligations to related parties(p.310)
- • Concentration of trade receivables with few customers(p.311)
- • Inventory management challenges with significant working capital tied up(p.299)
- • Heavy dependence on a few major customers(p.361)
- • Significant reliance on limited number of key suppliers(p.361)
- • Working capital intensive business with growing requirements(p.352)
- • Significant pending regulatory and statutory compliance matters(p.365)
Opportunities
- • Expansion into international markets, particularly MENA region with no existing local competition(p.43)
- • Growing industry trend shift from lead-based to non-lead based stabilizers(p.47)
- • Strong industry growth trajectory with expanding specialty chemicals sector(p.32)
- • Geographic expansion to address Asia-Pacific region's largest PVC stabilizer consumption(p.47)
- • Growing demand for non-lead and organic stabilizers(p.60)
- • Strong historical revenue and profitability growth trajectory(p.65)
- • Planned business expansion through geographic and product portfolio growth(p.65)
- • Expansion into international markets via Egypt facility targeting MENA region(p.205)
- • Large untapped market opportunity in Egypt with no local competitors(p.206)
- • Attractive tax and regulatory incentives at SC Zone Egypt for new manufacturers(p.206)
- • Growth in Indian specialty chemicals industry with favorable CAGR(p.195)
- • Modernization of India facility to increase capacity and automate production(p.207)
- • Expansion into emerging end-use applications like pharma and medical sectors(p.207)
- • Growing preference for lead-free stabilizers aligned with company capabilities(p.196)
- • Indian specialty chemicals industry expected to reach $51 billion by FY26 at 11.1% CAGR(p.338)
- • Shift from lead-based to calcium-zinc PVC stabilizers presents growth opportunity(p.338)
- • Expansion of CPVC additives market with higher temperature and chemical resistance applications(p.338)
- • Growing demand in potable water, agriculture, construction, medical and wires & cables sectors(p.338)
- • Expansion through proposed manufacturing facilities in Egypt and additional capacity in India(p.340)
- • Growing demand for non-lead based and safer stabilizer products(p.346)
- • Strategy to expand product portfolio and penetrate new market segments(p.339)
- • International market expansion through exports(p.339)
Threats
- • Regulatory risk from evolving lead-based stabilizer phase-out policies(p.53)
- • Cyclicality and downturn risk in dependent application industries(p.52)
- • Competitive pricing pressure affecting margins(p.56)
- • Foreign exchange and currency fluctuation risks for Egypt facility operations(p.33)
- • Supply chain and raw material procurement risks(p.31)
- • Risk of supplier concentration and dependence(p.48)
- • Restrictions on import of raw materials from regulated sources(p.60)
- • Risk of product development failure and market non-acceptance(p.60)
- • Vulnerability to manufacturing disruptions and operational interruptions(p.63)
- • Dependence on third-party transportation providers with supply chain risks(p.66)
- • Exposure to foreign exchange fluctuations on exports and imported raw materials(p.70)
- • Vulnerability to changes in environmental and pollution regulations(p.69)
- • Dependence on adequate and uninterrupted supply of electrical power at reasonable cost(p.70)
- • Vulnerability to technology changes and equipment obsolescence(p.69)
- • Exposure to slowdown in Indian economic growth and macroeconomic volatility(p.76)
- • Risk of tariffs, trade barriers and international sanctions affecting exports(p.77)
- • Intense competition from fragmented market with large number of competitors(p.213)
- • Volatility in raw material prices impacting margins(p.211)
- • Regulatory compliance requirements for hazardous chemicals handling(p.213)
- • Dependence on power supply from state grid creating operational risk(p.212)
- • Risk of capacity underutilization constraining financial performance(p.210)
- • Exposure to forex and commodity price fluctuations(p.211)
- • Price volatility of imported raw materials impacting margins(p.311)
- • Foreign exchange exposure with significant USD receivables and payables(p.327)
- • Regulatory shift requiring compliance with environmental and safety standards(p.338)
- • Competition from larger established players and new entrants in speciality chemicals(p.338)
- • Volatility in raw material costs impacting profitability(p.346)
- • Foreign exchange risk from import-export operations(p.356)
- • Competitive market pressures in chemical industry(p.361)
- • Regulatory risks related to environmental compliance and worker safety(p.373)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Krishna Dushyant Rana | Promoter | 61.57% | — |
| Parul Krishna Rana | Promoter | 33.15% | — |
| Krishna Dushyant Rana | Promoter | 61.57% | — |
| Parul Krishna Rana | Promoter | 33.15% | — |
| Geeta Dushyant Rana | Promoter Group | 0.02% | — |
| Parul Krishna Rana | Promoter | — | — |
| Krishna Dushyant Rana | Promoter | — | — |
| Geeta Dushyant Rana | Promoter Group Member | — | — |
| Krishna Dushyant Rana | Promoter | 61.57% | — |
| Parul Krishna Rana | Promoter | 33.15% | — |
| Parul Rana | Promoter/Director | 33.90% | — |
| Krishna D Rana | Promoter/Chairman & Managing Director | 62.96% | — |
| Krishna Dushyant Rana | Promoter | — | — |
| Parul Krishna Rana | Promoter | — | — |
Leadership
Krishna Dushyant Rana · Chairperson and Managing Director (CMD)
Krishnan Bhalaji · Chief Executive Officer (CEO)
Narendrakumar Laxmanbhai Raval · Chief Financial Officer (CFO)
Bhagyashree Amit Mallawat · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Platinum Industries IPO FAQs
What is the lot size of Platinum Industries IPO?
The minimum lot size of Platinum Industries IPO is 87 shares. One lot costs ₹14,877 at the cut-off price.
When does Platinum Industries IPO open and close?
Platinum Industries IPO opened for subscription on 27 Feb 2024 and closed on 29 Feb 2024.
What is the listing date of Platinum Industries IPO?
Platinum Industries IPO listed on 05 Mar 2024.