Platinum Industries IPO : Here are 10 key risks from the RHP you should know before subscribing

Platinum Industries IPO price band has been fixed in the range of ₹162 to ₹171 per equity share of face value of ₹10. Platinum Industries IPO lot size is 87 equity shares and in multiples of 87 equity shares.

Here are 10 key risks from the RHP to know before subscribing-

1. Platinum Industries is in the process of expanding its operations and establishing a network of distributors & customers in regions where it do not have a significant presence or prior experience. Any failure to expand into these new regions could adversely affect Platinum Industries sales, financial condition, result of operations and cash flows.

2. Platinum Industries is dependent on a few customers for a major part of our revenues. Further it does not enter into long-term arrangements with its customers and any failure to continue its existing arrangements could adversely affect its business and results of operation.

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3. If there are delays in setting up the Proposed Facilities or if the costs of setting up and the possible time or cost overruns related to the Proposed Facilities or the purchase of plant and machinery for the Proposed Facilities are higher than expected, it could have a material adverse effect on Platinum Industries financial condition, results of operations and growth prospects.

4. Platinum Industries is dependent on the demand from the industries where its products find application such as PVC pipes and tubes, PVC profiles, PVC fittings and electrical wires and cables. Any downturn in such industries could have an adverse impact on Platinum Industries business and results of operations.

5. Under-utilization of manufacturing capacities and an inability to effectively utilize its expanded manufacturing capacities could have an adverse effect on its business, future prospects and future financial performance.

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6. Platinum Industries does not have long-term agreements with its suppliers for raw materials and an inability to procure the desired quality, quantity of our raw materials in a timely manner and at reasonable costs, or at all, may have a negative impact on its business, results of operations, financial condition and cash flows.

7. Platinum Industries intends to utilise a portion of the Net Proceeds for funding its capital expenditure requirements. It is yet to place orders for such capital expenditure machinery.

8. Its inability to meet the preferences or consistent quality requirements of our customers or our inability to accurately predict and successfully adapt to changes in market demand could reduce demand for its products and harm its sales.

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9. A significant portion of its domestic sales are derived from the western zone and any adverse developments in this market could adversely affect its business.

10. Platinum Industries operates out of a single Manufacturing Facility which is located at Palghar, Maharashtra and therefore, any localized social unrest, natural disaster or breakdown of services or any other natural disaster in and around Palghar, Maharashtra or any disruption in production at, or shutdown of, its manufacturing unit could have material adverse effect on its business and financial condition.

thereafter.

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Published: 27 Feb 2024, 04:54 PM IST