CHENNAI: Chennai-based semiconductor chip manufacturing company Polymatech Electronics Limited has filed draft papers to raise Rs 750 crore through an initial public offering (IPO). It consists of a fresh issue of equity shares of the face value of Rs.10 each, through book building route.
The company will utilise Rs 565.72 crores to purchase new machinery to enhance its existing facility at Oragadam, Kancheepuram in Tamil Nadu and rest of the proceeds from the issue for general corporate purposes, according to draft DRHP filed with the market regulator SEBI (Securities and Exchange Board of India). The company has appointed Khambatta Securities Limited as Book Running Lead Manager to the Issue and Link Intime India Private Limited as the Registrar to the Issue. The shares of the company are to be listed on NSE and BSE.
Polymatech Electronics is led by Eswara Rao Nandam, its Managing Director with an experience in the manufacturing of electronic and automobile components. Initially owned and promoted by foreign shareholders, it was later acquired by Eswara Rao Nandam and Uma Nandam in 2016 and 2017 through share purchase agreements. Current promoters hold 6,34,57,000 equity shares with 79.63 % shares. There will be no Offer for Sale component.
Headquartered in Chennai, Polymatech designs and produces opto-semiconductor chips and luminaries at Oragadam from 2019. Its business is divided into two fully packaged Opto-Semiconductor Chips and luminaries (large-area lighting for industrial application). It is also gearing up for commercial supply of chips for medical applications, aquaculture, horticulture, sanitization and data transmission by the end of this financial year, according to the draft papers. The company has also purchased a facility in Krishnagiri, Tamil Nadu, for setting up its second plant.
The market of opto-semiconductor industry in India is expected to reach USD 5,351 million by 2028, growing at a CAGR of 15% from 2022 to 2028, according to the company. The developments in this sector are expected to be driven by increased investment, supportive policies by the Government and increase in demand by the end-user industries, it said in the filing documents.