Kumar Arch Tech Eyes Rs 740 Crore with Upcoming IPO

Kumar Arch Tech has filed papers to launch a Rs 740 crore initial public offering (IPO). The offering will include new shares worth Rs 240 crore and an offer-for-sale by promoters amounting to Rs 500 crore. Proceeds will fund capital expenditures for its subsidiary, Taylias Industry Private Limited.

Kumar Arch Tech, a leading manufacturer of PVC blend-based building materials, has submitted preliminary documents to market regulator Sebi for a Rs 740 crore initial public offering (IPO).

The IPO will feature a fresh issuance of shares worth Rs 240 crore and an offer-for-sale from promoters totaling Rs 500 crore, as per the draft papers filed on Friday.

Additionally, the firm may raise Rs 48 crore in a pre-IPO placement round, which would reduce the fresh issue size accordingly.

Proceeds from the fresh issuance, approximately Rs 182.09 crore, will be allocated to its subsidiary Taylias Industry Private Limited for capital expenditure needs related to a greenfield project involving PVC product manufacturing.

Kumar Arch Tech's product portfolio includes boards and sheets, profiles, and signage solutions. According to a Wazir report, U.S. imports of PVC blend-based building materials grew at a CAGR of 6% from USD 4.9 billion in 2020 to USD 6.2 billion in 2024. During the same period, India's exports of these materials to the U.S. rose from USD 47 million to USD 144 million, a CAGR of 32%.

Motilal Oswal Investment Advisors and Equirus Capital will act as the book-running lead managers for the issue.

(With inputs from agencies.)