Market News
2 min read | Updated on September 28, 2024, 16:08 IST
SUMMARY
Proceeds from the fresh issue to the tune of ₹182.09 crore will be used for investment in its subsidiary Taylias Industry Private Limited for financing its capital expenditure requirements.
The proposed IPO is a mix of fresh issuance of shares valued ₹240 crore
Kumar Arch Tech, which is into PVC blend-based building material products manufacturing, has filed preliminary papers with capital markets regulator SEBI to garner ₹740 crore through an initial public offering (IPO).
The proposed IPO is a mix of fresh issuance of shares valued ₹240 crore, and an offer-for-sale (OFS) of shares worth ₹500 crore by promoters, according to the draft papers filed on Friday.
Also, the company may mop up ₹48 crore in the pre-IPO placement round. If such placement is carried out, the fresh issue size will be reduced.
Proceeds from the fresh issue to the tune of ₹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 that comprise mouldings and door frames; and signage solutions.
According to the Wazir report, US imports of PVC blend-based building materials grew at a compound annual growth rate (CAGR) of 6 percent to $6.2 billion on March 31, 2024, from $4.9 billion on March 31, 2020.
During the same period, India's exports of these materials to the US increased from $47 million (1 percent of total US imports) to $144 million (2.3 percent of total US imports), with a CAGR of 32 percent, the report added.
Motilal Oswal Investment Advisors and Equirus Capital are the book-running lead managers to the issue.
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