Platinum Industries IPO opens for subscription. Should you apply?
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Synopsis
Platinum Industries IPO received Rs 70.59 crore from anchor investors. Analysts recommend subscribing due to strong financial record. The company plans to utilize net proceeds for investment in Platinum Stabilizers Egypt, capex requirements, and has strong R&D capabilities. It is a multi-product manufacturing company with sales across India and international markets.
By Akash Podishetti, ETMarkets.com
Last Updated:
The initial public offering (IPO) of Platinum Industries has opened for subscription on Tuesday. The issue will be available for the public to bid till Thursday, February 29.
Platinum Industries IPO review
Analysts advised investors to subscribe to the issue over the company's strong financial record in the last two years and fair pricing.
"We believe that valuations of the company are fairly priced and recommend a Subscribe-Long Term rating to the IPO," said Anand Rathi.
At the upper price band, the company is valued at P/E of 25.0X, with a market cap of Rs 939.2 crore post issue of equity shares and return on net worth of 61.26%.
Platinum Industries IPO price band
The company had set the price band of Rs 162-171 per share, where investors can bid for 87 shares in one lot and in multiples thereafter.
Platinum Industries GMP
According to market analysts, the current GMP of Platinum Industries is Rs 80 in the unlisted market.
Other details
Net proceeds from the public offer are proposed to be utilised for investment in Platinum Stabilizers Egypt, financing capex requirements, working capital and general corporate purposes.
Platinum Industries has grown from commencing from 2 products portfolio to a multi-product manufacturing company with sales across India and in international markets. It is into manufacturing of various important industrial products like PVC Stabilizers, lubricants etc. along with strong R&D capabilities.
In FY23, the company's total income increased 23% year-on-year to Rs 232 crore. Net profit during the same period rose 112% to Rs 37.5 crore. For the six months ended September 2023 period, total income stood at Rs 123.7 crore and profit was at Rs 22.8 crore.
Unistone Capital is the book running lead manager for the IPO and Bigshare Services is the registrar.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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Ahead of the IPO, the company has garnered Rs 70.59 crore from anchor investors.Platinum Industries IPO review
Analysts advised investors to subscribe to the issue over the company's strong financial record in the last two years and fair pricing."We believe that valuations of the company are fairly priced and recommend a Subscribe-Long Term rating to the IPO," said Anand Rathi.
At the upper price band, the company is valued at P/E of 25.0X, with a market cap of Rs 939.2 crore post issue of equity shares and return on net worth of 61.26%.
Platinum Industries IPO price band
The company had set the price band of Rs 162-171 per share, where investors can bid for 87 shares in one lot and in multiples thereafter.ADVERTISEMENT
Platinum Industries GMP
According to market analysts, the current GMP of Platinum Industries is Rs 80 in the unlisted market.Stocks Recommendations
Other details
Net proceeds from the public offer are proposed to be utilised for investment in Platinum Stabilizers Egypt, financing capex requirements, working capital and general corporate purposes.ADVERTISEMENT
Platinum Industries has grown from commencing from 2 products portfolio to a multi-product manufacturing company with sales across India and in international markets. It is into manufacturing of various important industrial products like PVC Stabilizers, lubricants etc. along with strong R&D capabilities.
In FY23, the company's total income increased 23% year-on-year to Rs 232 crore. Net profit during the same period rose 112% to Rs 37.5 crore. For the six months ended September 2023 period, total income stood at Rs 123.7 crore and profit was at Rs 22.8 crore.
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Unistone Capital is the book running lead manager for the IPO and Bigshare Services is the registrar.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
(You can now subscribe to our ETMarkets WhatsApp channel)
