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Polymatech Electronics limited IPO Details: Date, Share Price, Size, GMP & Review

Polymatech Electronics Limited – About the Company

In 2019, Polymatech Electronics began production of India's first opto-semiconductor chips. The company is involved in-house designing, fabricating, manufacturing, packaging, and assembly of opto-semiconductor chips, which are sold directly to customers. The company focuses on providing high-quality semiconductor chips and luminaries that consume less energy, generate less heat, and are more efficient.

What are opto-semiconductor chips?

Opto-semiconductor is the chips that work by absorption and emission of light. The opto-semiconductor devices work on the basis of interaction of light and interaction of the electron-holes. These chips are used in various technologies, from lighting and displays to sensors and communication systems. They are advantageous over other semiconductors on the basis of conversion efficiency.

Polymatech Electronics IPO Objectives

The entire issue of Polymatech Electronics IPO is a fresh issue, hence the whole fund raised from issuing the equity shares will go to the company. Polymatech Electronics is going to utilize the net proceeds from the issue to purchase new machinery for enhancing capacity at existing facility and General corporate purposes.

As per the field document, total estimated cost of machinery is around Rs. 565.72 crores and the remaining amount will be used in General corporate purposes.

Polymatech Electronics IPO Details:

IPO Open Date To be Announced
IPO Close Date To be Announced
Basis of Allotment To be Announced
Listing Date To be Announced
Face Value Rs 10 per share
Price To be Announced
Lot Size
Total Issue Size Upto Rs. 750 crores
Aggregating up to Rs. [●] million
Fresh Issue Up to [●] equity shares
Aggregating upto Rs. 750 crores
Offer For Sale NIL
Issue Type Book Built Issue IPO
Listing At BSE & NSE
QIB Shares Offered Not more than 50% of the Net Issue
Retail Shares Offered Not less than 35% of the Net Issue
NII (HNI) Shares Offered Not less than 15% of the Net Issue

 

Polymatech Electronics IPO Issue Price & Size

As per the DRHP, this issue does not have any offer for sale by the promoters and only consists of fresh issue amounting to Rs. 750 crores. Since IPO price range is not released number of shares is not known. The amounts will be updated along with other important information upon the release of RHP.

Polymatech Electronics IPO Launch Date

The launch date of Polymatech Electronics IPO has been not declared yet, hence it is not known. Once the IPO price and launch date are decided and the company plans to introduce the IPO, all the details will be updated soon with the latest updates.

Polymatech Electronics Financial Statement:

Particulars As at, and for the fiscal year ended,
2023 2022 2021
Income
Revenue from operations 64092 12587.31 4501
Other income 260.29 220.37 217.21
Total Income 64162.29 12807.69 4718.68
Expenses
Cost of materials consumed 45063.73 9824.02 3389.91
Changes in inventories -594.59 -1598.14 -129.12
Employee benefits expenses 126.63 78.23 59.78
Finance costs 530.35 385.75 228.4
Depreciation and amortisation expenses 1606.98 317.9 302.68
Other expenses 1764.69 296 142.07
Total Expenses 48497.78 9303.76 3993.72
Total tax expenses 16776.62 3426.82 628.83

(in Lakhs)

Particulars As at, and for the fiscal year ended,
2023 2022 2021
Revenue from Operations 64902 12587.3 4501.37
Total Income 65162.29 12807.68 4718.58
EBITDA 18801.84 4207.57 1255.94
EBITDA Margin 28.97% 33.43% 27.90%
Profit/(Loss) after Tax 16776.62 3426.81 628.83
PAT Margin 25.85% 27.22% 13.97%
Capital Expenditure 8036.53 991.06 3181.44
ROCE 75.57% 42.95% 18.00%
ROE 86.70% 66.14% 19.94%
Net Debt/EBITDA Ratio -0.002 0.99 2.1
Debt to Equity Ratio 0.13 0.6 0.76
Interest Coverage Ratio 32.42 10.08 4.17

(in Lakhs)

Polymatech Electronics IPO Promoters & Shareholding of the Company

There are three porters of the company

  1. Eswara Rao Nandam (Managing Director)
  2. Uma Nandam (Director)
  3. Vishaal Nandam (Director)

As of date of filling of the prospectus, Promoters in aggregate, hold 79.63% of the paid-up Equity Share capital of the company.

Why Invest in Polymatech Electronics IPO?

While investing in an IPO-bounded company, one should check their fundamentals that help an investor to Visions Company’s financial performance and competitive strength which at last drives its business growth. Fundamental analysis apart from financial and competitive strength, also help you to know the risk factors that can affect the business operations and future prospects of the company. After evaluating the variables such strength weakness, financials, you may strike a balance and decide to invest or not invest in an IPO.

Competitive Strengths:

  • India’s first Opto-Semiconductor Chips manufacturer

In 2019, Polymatech became India's first manufacturer to begin production of opto-semiconductor chips. The company focused on providing high-quality chips and luminaries that consume less energy, generate less heat, and are more efficient. The development and integration of all these products and designs is done at their in-house, state-of-the-art facility.

  • Poised to capture growth of opto-semiconductor chips market

India's opto-semiconductor industry is currently reliant on imports from other countries. Since COVID, Make in India has been a focus point for the government, and since then, the Indian economy has been driven by increased investment from various industry participants and changes in government policies leading to increased demand from end-user industries. As per the DRHP, the opto-semiconductor industry is expected to reach USD 5,351 Mn by 2028, growing at a CAGR of 15% from 2022 to 2028. The company, through this IPO, wants to invest in capital expenditures to capture a share of the growing market.

  • Strong focus on R&D

The company's has in-house R&D team, which focuses on product, electronic circuit, and prototype design. In 2019, the company successfully developed and produced its first semi-conductor chip.

Since then, the company has expanded its product portfolio, customer base, and technological expertise.

Expand product lines

To capitalize on this growth, the company has developed and completed trials for various products, including photosynthesis lighting for horticulture, aquaculture lighting, UV light for operation theaters, sanitization lighting for food processing, lights used in endoscopy and laparoscopy equipment, and Li-Fi (Light fidelity) equipment for transmitting data through light.

Risks Factors:

Dependent on few customers

Draft Red Herring Prospectus reveals that the company is reliant on limited number of clients from majority of their revenue generation. Below mentioned are details of top 5 and top 10 clients’ revenue.

FY23 FY22 FY21
Top 5 customers 61.99% 65.78% 72.70%
Top 10 customers 86% 88.87% 90.98%

 

Disruption in supplies

For making the final product, the company is reliant on raw material that is sourced from third party from foreign nations. Rising geopolitical tensions in various parts of world can lead to disruptions resulting in increased costs, impact on cash flows & operations and damage to the company's reputation.

Particulars For the Financial Year ended
2023
No. of Suppliers Percentage of total purchases of raw materials (%)
Direct import from Japan 10 65%
Direct import from South Korea 3 10%
Direct import from Taiwan 4 12.50%
Direct import from European Union 2 2.50%
Domestic sourcing 3 10%
Total 22 100%

 

Concentration of capacity

The company only has one manufacturing facility and any disruptions, slowdowns, or shutdowns in the manufacturing or R&D operations could potentially have adverse effects on the company.  The disruption can impact company’s financial condition, cash flows, and operational results.

Sustainable and regular R&D

The development and commercialization of products are complex, time-consuming, costly, and high in business risk. Technological advancement may affect demand, and future performance depends on the successful introduction and market acceptance of new, improved products and services through regular research and development.

Strong working capital requirement

The business requires working capital for meet daily operations. Currently, they are fluffing working capital requirements from internal accruals and unsecured borrowings. Problems in raising working requirement can lead to operational inefficiencies,.

Ratios FY23 FY22 FY21
Debtors (Days) 45 48 32
Creditors (Days) 14 46 55
Inventory (Days)
Raw Material 6 5 NIL
Work in Progress 5 15 7
Finished Goods 11 26 NIL

Polymatech Electronics IPO Grey Market Premium (GMP)

The Polymatech Electronics IPO GMP is not yet known as the IPO price is not disclosed. Once the IPO is open, the price will be disclosed and as per the demand and supply of the share price in the open market, the Polymatech Electronics IPO GMP will be known. If the IPO price is undervalued, less GMP and as per the valuation of the stock overvalued there is less chance for higher GMP.

How to Apply for Polymatech Electronics Limited IPO?

If you have a share trading and demat account at Moneysukh, you can easily apply for the Polymatech Electronics Limited IPO. Just follow the steps given below.

Step 1: Once Polymatech ElectronicsLimited IPO opens you can apply online.

Step 2: Browse at trade.moneysukh.com and log in with your Moneysukh User ID & password.

Step 3: Now you have to visit the IPO section and select Polymatech Electronics Limited IPO.

Step 4: Here just fill in the required such as bidding price, quantity or lot and so on.

Step 5: Now you have to make the payment and your IPO application is successful.

How to Check Polymatech Electronics Limited IPO Allotment Status?

Just like applying, checking the Polymatech Electronics Limited IPO Allotment Status is also very easy and hassle-free through Moneysukh online platform. You have to just wait till the IPO is closed and the allotment is finalized. If you have been allotted any share it will be transferred into your demat account that you can sell after listing of the shares on the NSE or BSE stock exchanges.

Also Read: How to Increase the Chances of IPO Allotment

However, if IPO is oversubscribed and unfortunately if you have not been allotted any share, your IPO application money will be returned to your bank account or linked account where you have allocated the fund while applying for the Polymatech Electronics IPO.

Also Read: How to check IPO allotment status on NSE, BSE through Moneysukh

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