KUMAR ARCH TECH LIMITED FILES DRHP WITH SEBI FOR UP TO Rs.740 CRORE IPO

Kumar Tech Limited, the largest manufacturer and exporter of PVC2 blend-based building material products in India, in terms of value as of March 31, 2024 according to Wazir Report has filed its Draft Red Herring Prospectus (“DRHP”) with market regulator Securities and Exchange Board of India (“SEBI”).

The Company plans to raise funds through offer of equity shares (face value ₹2 each) through initial public offerings aggregating up to ₹7400 million (₹740 Crore).

The offer comprises of fresh issue of equity shares aggregating up to ₹2400 million (₹240 crore) (The “Fresh Issue”) and offer for sale by Selling Shareholders aggregating up to ₹5000 million (₹500 Crore) (The “Offer for Sale”).

The Company proposes to utilize the Net Proceeds towards funding – (i) Investment in wholly owned Subsidiary, TIPL for financing its capital expenditure requirements for the greenfield project in relation to the manufacture of PVC based products estimated amount to be ₹1820.92 million [₹ 182.09 crores] and balance amount towards general corporate purposes. (The “Object of Issue”)

The Equity Shares that will be offered through the Red Herring Prospectus are proposed to be listed on the BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”). (The “Listing Details”)

Motilal Oswal Investment Advisors Limited and Equirus Capital Private Limited are the Book Running Lead Managers to the issue. (The “BRLMs”)

The company provides a wide range of products, classified into three categories, (i) board/sheets and their derivatives such as trimboards, doors, and wall ceiling panels and columns, (ii) profiles which comprise of mouldings and door frames, (iii) and signage solutions.