Kumar Arch Tech, a manufacturer specializing in PVC blend-based building materials, has filed a draft with the Securities and Exchange Board of India (SEBI) to raise Rs 740 crore through an Initial Public Offering (IPO). The IPO will consist of two parts: a fresh issue of shares worth Rs 240 crore and a Rs 500 crore offer-for-sale (OFS) by the company’s promoters, as detailed in the draft documents submitted recently.
Additionally, the company may look to secure Rs 48 crore through a pre-IPO placement. If this round is successful, the size of the fresh issue will be adjusted accordingly.
A significant portion of the funds from the fresh issue—Rs 182.09 crore—will be directed toward its subsidiary, Taylias Industry Private Limited, to fund capital expenditures for a greenfield project focused on manufacturing PVC-based products.
Kumar Arch Tech offers an extensive range of products, categorized into three main areas: board and sheet products such as trimboards, doors, and ceiling panels; profiles including mouldings and door frames; and signage solutions.
A report by Wazir Advisors highlights that U.S. imports of PVC blend-based building materials have grown at a compound annual growth rate (CAGR) of 6%, increasing from USD 4.9 billion in 2020 to USD 6.2 billion by March 2024. During this period, India’s exports to the U.S. in this sector surged from USD 47 million (representing 1% of total U.S. imports) to USD 144 million (2.3% of U.S. imports), achieving a CAGR of 32%.
Motilal Oswal Investment Advisors and Equirus Capital have been appointed as the lead managers for the IPO.