MC Exclusive: India’s first opto-semiconductor maker Polymatech may launch IPO in April

Polymatech IPO: Polymatech filed draft documents with the Securities and Exchange Board of India in October 2023

Polymatech, India’s first opto-semiconductor chips manufacturer, is eyeing an IPO debut in April this year if it gets the regulator's nod. The issue size is expected to be about Rs 750-1,000 crore and the price band may be between Rs 680-750 per share, sources aware of the matter told Moneycontrol on the condition of anonymity.

Polymatech Electronics is trading at Rs 860 per share in the unlisted market, according to Unlisted Arena.

Polymatech had filed draft documents with the Securities and Exchange Board of India in October 2023, to raise Rs 750 crore via an IPO. According to DRHP, the offer will be entirely a fresh issue of shares and there will be no offer-for-sale (OFS) component. The company plans to use the IPO proceeds to buy new machinery for its existing facility in Tamil Nadu.

It has a unit in Tamil Nadu’s Oragadam, with a capacity of 300 MPA chips, offering efficiency and economies of scale. The company is also working on setting up a second plant in Krishnagiri again in Tamil Nadu, acquired as a "Built to Suit" (BTS) property through a sale deed dated August 22, 2023.

In FY23, the company’s revenue was at Rs 649.02 crore, up from Rs 125.87 crore in the previous year. Net profit was at Rs 167.77 crore against Rs 34.27 crore in the previous year. EBITDA margin for the year was 29 percent against 33.43 percent in the previous year.

Polymatech started production in 2019 using advanced European and Japanese technologies to produce high-quality chips that meet global standards, as per the DRHP. The firm typically manufactures products in two categories opto-semiconductor chips and luminaries.

Based in Chennai, Polymatech Electronics’ promoters are Eswara Rao Nandam, Uma Nandam, and Vishaal Nandam. The company designs, develops, tests and manufactures opto-semiconductor chips at its facility in Oragadam.