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
- Eswara Rao Nandam (Managing Director)
- Uma Nandam (Director)
- 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
