Kumar Arch Tech files draft papers to raise Rs 740 crore via IPO
The proposed IPO is a mix of fresh issuance of shares valued Rs 240 crore, and an offer-for-sale (OFS) of shares worth Rs 500 crore by promoters.
Kumar Arch Tech, which is into PVC blend-based building material products manufacturing, has filed preliminary papers with capital markets regulator Sebi to garner Rs 740 crore through an initial public offering (IPO).
The proposed IPO is a mix of fresh issuance of shares valued Rs 240 crore, and an offer-for-sale (OFS) of shares worth Rs 500 crore by promoters, according to the draft papers filed on Friday.
Also, the company may mop up Rs 48 crore in pre-IPO placement round. If such placement is carried out, fresh issue size will be reduced.
Proceeds from the fresh issue to the tune of Rs 182.09 crore will be used for investment in its subsidiary Taylias Industry Private Limited for financing its capital expenditure requirements for the greenfield project in relation to the manufacturing of PVC-based products.
Kumar Arch Tech offers a wide range of products, classified into three categories -- board/sheets and their derivatives such as trimboards, doors, and wall ceiling panels and columns; profiles which comprise mouldings and door frames; and signage solutions.
According to Wazir report, US imports of PVC blend-based building materials grew at a compound annual growth rate (CAGR) of 6 per cent to USD 6.2 billion on March 31, 2024 from USD 4.9 billion on March 31, 2020.
During the same period, India's exports of these materials to the US increased from USD 47 million (1 per cent of total US imports) to USD 144 million (2.3 per cent of total US imports), with a CAGR of 32 per cent, the report added.
Motilal Oswal Investment Advisors and Equirus Capital are the book-running lead managers to the issue.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
SIP Returns: You corpus can reach from Rs 2 crore to Rs 4 crore in just 3 years if you get 2 per cent additional returns; know how it can work out
Compounding Benefits: Starting Rs 5,000 SIP at 20, 25, 35? Here’s how much funds you can accumulate at retirement
SBI Senior Citizen FD Calculator: How much will you get if you invest Rs 5 lakh, Rs 10 lakh, Rs 15 lakh, or Rs 20 lakh in 1-, 3-, and 5-year fixed deposit schemes
SIP+SWP: Rs 25,000 monthly SIP investment for 20 years and then Rs 1,42,000 monthly income for 45 years; know how it is possible
EPFO Pension Rules: You can get 8% extra EPS pension by using this trick; see calculations with examples
03:34 PM IST