This public provide will likely be twice the dimensions of the ₹750 crore initially deliberate, when the corporate had filed its draft prospectus with the Securities and Change Board of India (Sebi) in October 2023. Again then, the corporate was contemplating an inventory in April. The corporate, which manufactures opto-semiconductor chips, additionally known as photonics, is searching for to divest a ten% stake by the IPO.
“We will definitely go for the IPO of about ₹1,500 crore inside this yr. We’ve knowledgeable Sebi that we are going to be refiling the DRHP with our March or June financials.” The corporate is within the means of appointing service provider bankers for the sale, he added.
In response to Nandam, a number of funds have expressed curiosity in investing within the firm, however Polymatech prefers to take the IPO path to return worth to its shareholders.
Promoters, together with Nandam, maintain round 80% of Polymatech, with 2.6% owned by Nav Capital Rising Star Fund. In response to the 2023 DRHP, there have been a number of non-public placements over the previous few years, involving particular person shareholders.
Polymatech’s income almost doubled from round ₹650 crore in FY23 to ₹1,200 crore in FY24. In FY22, its income was at ₹125.87 crore. The corporate expects to double its revenues yearly pushed by the anticipated rise in chip demand within the coming years. Moreover, it has expanded its chip packaging capability by 1 billion items in FY24.
“Presently we’re making 2 billion chips a yr. We’ll scale as much as 20 billion chips over six years. We just lately entered into wafer fabrication and rising ingots. We will likely be establishing a wafer fab and packaging crops. So, in all, we’re a $5 billion funding over the following few years.”
Out of the $5 billion, $1.5 billion will likely be invested from the proceeds of the IPO in addition to inside accruals, he mentioned, including that the corporate may also be making use of for monetary incentive schemes provided by central and state governments for semiconductor items.
The Centre has established a $10-billion fund for the Modified Programme for Semiconductors and Show Fab Ecosystem, providing a 50% monetary incentive to firms concerned in chip manufacturing or meeting in India. Following the central authorities’s approval, state governments might prolong extra capital subsidies underneath their respective schemes.
The corporate at present operates two crops in Tamil Nadu. It’s looking for an acceptable location, spanning 45-50 acres, to arrange a wafer fabrication unit for captive use.
Earlier this month, the corporate signed a memorandum of understanding with Japanese precision manufacturing agency Orbray, which can provide sapphire ingot rising applied sciences, apart from coaching Polymatech’s engineers at its facility in Japan. Sapphire ingots are crystalline constructions used as the bottom materials within the manufacturing of LEDs.
“We’ll start with sapphire, then we are going to get into silicon carbide after which silicon, to change into a multi-wafer firm, and can provide to anybody who involves India, be it wafer, ingots or chips, something that they might want.”
Additionally it is engaged in superior discussions with suppliers of silicon carbide wafers and silicon wafer fabrication equipment, searching for to have tie-ups alongside the traces of the Orbray partnership.
Out of its deliberate investments of $5 billion over the following 3-4 years, it is going to allocate $1 billion to arrange a 1 million sq ft facility for ingots by the year-end, he mentioned. One other $1 billion could also be invested for a neighborhood packaging unit, in addition to abroad packaging items. “Our firm’s imaginative and prescient is to change into a completely built-in, end-to-end, semiconductor firm.”
The Chennai-based firm designs, manufactures, packages, and assembles semiconductor chips and chip modules for numerous purposes, together with medical, agriculture, large-area lighting, PCs, laptops, and cellphone backlights. It additionally exports to the US, UK and the Center East.
As of March 2024, Polymatech earned round $146 million from exports, mentioned Nandam. Additionally it is exploring abroad places for establishing meeting and packaging items, he added. “We’re already in discussions with governments of Bahrain, Singapore and the UK, in addition to the US. Officers from the US will likely be visiting quickly.”
Supply: Live Mint