Polymatech Electronics files papers to raise Rs 750 crore via IPO

Polymatech Electronics Ltd has filed draft papers with Securities Exchange Board of India to raise Rs 750 crore via fresh issue.

Home-grown semiconductor chip maker Polymatech Electronics Ltd has filed draft papers with the Securities Exchange Board of India to raise Rs 750 crore through an initial public offering which will purely be a fresh issue.

The company plans to use Rs 565.73 crore of the IPO proceeds to buy new machinery for its existing facility in Tamil Nadu.

Khambatta Securities is the sole book-running lead manager to the issue.

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

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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. The EBITDA margin for the year was 29 percent against 33.43 percent in the previous year.

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Its clients include Fortune 1000 multinational corporations. Its lighting systems are used in various facilities like Shin-Etsu in Japan, Vishay Precision Group, Stanley, Lohman, Okaya in Japan, ASPEN Infra (formerly Suzlon Infrastructure Ltd), Mori Mura in Japan and at locations such as Coimbatore airport and Sawai Mansingh Stadium, it said.