Polymatech Electronics Seeks ₹750 Crore IPO to Upgrade Machinery

Indian opto-semiconductor chip manufacturer Polymatech Electronics has filed for a ₹750 crore initial public offering (IPO) with the Securities and Exchange Board of India (SEBI). A significant portion of the funds, totaling ₹566 crore, is designated for acquiring new machinery at their production facility in Oragadam.

Recent reports indicate that Polymatech Electronics has been generating high returns on invested capital and holds more cash than debt, supporting its decision to invest in new machinery. This move follows a notable improvement in the company’s financial performance, with revenue reaching ₹649 crore in the fiscal year 2023 and a profit-after-tax of ₹168 crore.

Polymatech is guided by prominent promoters and major shareholders Eswara Rao Nandam and Uma Nandam. The planned upgrade of machinery at the Oragadam facility reflects a strategy aimed at enhancing production capabilities, likely in response to the company’s recent financial achievements.

Potential investors may find Polymatech Electronics appealing, as it is recognized as a leading player in the Electrical Equipment sector. The company’s stockholders benefit from high returns on book equity, and it has been trading at a significant earnings multiple. Moreover, Polymatech has shown profitability over the last twelve months, reinforcing its status as an attractive investment opportunity.

This article was generated with AI assistance and reviewed by an editor.