October 5th 2023.
Polymatech Electronics, a semiconductor chip maker, announced on Thursday that it has filed preliminary papers with the capital markets regulator, Sebi, to raise Rs 750 crore through an initial public offering (IPO). The offering will comprise of only fresh equity shares with no offer-for-sale component.
The Chennai-based firm plans to utilize Rs 566 crore of the proceeds to purchase new machinery for its existing facility in Tamil Nadu. The rest of the funds will be used for general corporate purposes.
Polymatech Electronics was first established as a foreign company owned and promoted by foreign shareholders in 2007. In 2016 and 2017, it was acquired by Eswara Rao Nandam and Uma Nandam, the current promoters, through share purchase agreements.
In 2019, the firm began designing and producing opto-semiconductor chips with the help of cutting-edge European and Japanese technologies. Its solutions are used in various industries for large-area lighting at commercial places. In addition, the firm has developed and completed trials for products in medical applications, data transmission, specialised lighting for photosynthesis, aqua lighting, and sanitisation.
According to a CARE Advisory Research and Training Ltd report, the global opto-semiconductor market was estimated at Rs 2.73 lakh crore in 2018 and grew at a CAGR of 4 per cent to Rs 3.32 lakh crore in 2022. The industry is expected to reach Rs 4.87 lakh crore by 2028, expanding at a CAGR of 5.4 per cent from 2022 to 2028.
Khambatta Securities Ltd has been appointed as the sole book-running lead manager for the issue. Once the IPO is successfully completed, the equity shares of the company will be listed on the NSE and BSE.
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