IPO Details
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Schedule of Kumar Arch Tech Ltd IPO
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Issue Highlights
Initial public offer of up to [] equity shares of face value of Rs. 2 each (equity shares) of Kumar Arch Tech Limited (the company or the company or the issuer) for cash at a price of Rs. [] per equity share (including a premium of Rs. [] per equity share) (the offer price) aggregating up to Rs. 740.00 crores (the offer) comprising a fresh issue of up to [] equity shares having face value of Rs. 2 each by the company aggregating up to Rs. 240.00 crores (the fresh issue) and an offer for sale of up to [] equity shares having face value of Rs. 2 each aggregating up to Rs 500.00 crores (the offer for sale), comprising up to [] equity shares having face value of Rs. 2 each aggregating up to Rs. 227.00 crores by Jitendra Kumar Taylia, up to [] equity shares having face value of Rs. 2 each aggregating up to Rs. 105.00 crores by Shubham Taylia, up to [] equity shares having face value of Rs. 2 each aggregating up to Rs. 9.00 crores by Shakun Taylia, up to [] equity shares having face value of Rs. 2 each aggregating up to Rs. 17.50 crores by Madhu Agrawal, up to [] equity shares having face value of Rs. 2 each aggregating up to Rs. 7.00 crores by M.M.Thermoplast Private Limited, up to [] equity shares having face value of Rs. 2 each aggregating up to Rs. 60.00 crores by Surbhi Jitendrakumar Taylia, up to [] equity shares having face value of Rs. 2 each aggregating up to Rs. 6.00 crores by J.S. Construction, up to [] equity shares having face value of Rs. 2 each aggregating up to Rs. 7.00 crores by Rituraj Pipes and Plastics Private Limited, and up to [] equity shares having face value of Rs. 2 each aggregating up to Rs. 61.50 crores by Tirupati Balaji Build-Con Private Limited (referred to as the selling shareholders and such equity shares offered by the selling shareholders, the offered shares). The offer shall constitute []%, of the post-offer paid-up equity share capital of the company. The face value of the equity share is Rs. 2 each and the offer price is [] times the face value of equity share. The price band and the minimum bid lot will be determined by the company.
About Kumar Arch Tech Limited IPO
Kumar Arch Tech Limited IPO is an IPO aggregating up to ₹740 crores. It consists of an offer for sale aggregating up to ₹500 crores and a fresh issue aggregating up to ₹240 crores. The shares will be allotted on TBA. The credit of shares to the demat account will take place on TBA and the initiation of refunds will take place on TBA.
Objective of Kumar Arch Tech Limited IPO
- Investment in their wholly owned subsidiary, Taylias Industry Private Limited (TIPL) for financing its capital expenditure requirements for the greenfield project in relation to the manufacture of PVC based products (the TIPL Project).
- General corporate purposes.
Kumar Arch Tech Limited IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band (₹) | TBA |
Existing Shares to be Sold | Aggregating up to ₹500 crores |
Fresh Issue | Aggregating up to ₹240 crores |
EPS (₹) For the year ended March 31, 2024 | 6.45 |
Kumar Arch Tech Limited IPO Share offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs Share Offered | Not more than 50% of the Issue |
Non-Institutional Investors (NIIs) | Not less than 15% of the Issue |
Retail Individual Investors | Not less than 35% of the Issue |
Industry Outlook
The building product market is experiencing a transition from traditional products like wood, MDF, etc. to new-age products like PVC blend-based building material, solid acrylic, quartz, etc.
In CY2023, the Indian building product market was US $1800 crores and growing at a CAGR of 8%. It is one of the fastest-growing markets of building products in the world. Global PVC blend-based building material market was estimated to be US $8100 crores in CY2023 comprising 6.8% of the total building product market. It is projected to reach US $11600 crores in CY2028 by a CAGR of 7% comprising 7.7% of the total building product market.
India’s export globally in PVC blends-based material has grown from US $11.9 crores as on 31st March FY24 to US $22.2 crores as on 31st March FY24 with a CAGR of 17%.
The PVC door market, window and frames, wall and ceiling panels, foam boards, laminates and flooring are all individually growing in numbers with a considerable market share.
Company Information
Kumar Arch Tech Limited is the largest manufacturer and exporter of PVC^2 blend-based building material products in India, in terms of value, as of March 31, 2024. With a legacy of over 22 years of operations, their expertise in material science and their R&D capabilities, they have developed their proprietary formulations which give them the flexibility to manufacture products by blending more than eight different raw materials. They provide their customers a wide range of products, classified into three categories, (i) board/sheets and their derivatives such as trim boards, doors, and wall ceiling panels and columns, (ii) profiles which comprise of mouldings and door frames, (iii) and signage solutions. They are one of the pioneers in the PVC blend-based building material products industry in India. They have diversified their product offering along with innovation and quality well suited to meet the requirements of international and Indian markets (Source: Wazir Report).
Strengths of Kumar Arch Tech Limited IPO
Largest manufacturer and exporter of PVC blend-based building material products and an emerging domestic player in a majorly unorganised Indian Market, well–positioned to capture industry tailwinds
They are the largest manufacturer and exporter of PVC blend-based building material products in terms of value, as of March 31, 2024, (Source: Wazir Report). They believe that their leading market position across several of their products is attributable to their competencies and capabilities in developing products, which have helped them optimise production and ensure long-term relationships with their customers, offering continuous product and process improvisation and innovation led by their R&D capabilities.
Robust and diversified product portfolio supported by innovation capabilities and an understanding of material science.
They have a comprehensive product portfolio of more than 900 SKUs as of June 30, 2024 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. Their products find applications in residential, commercial and industrial sectors for new construction and renovations, in the domestic and international markets they cater to. They are the only player amongst key branded players offering PVC blend-based sheets and boards with a thickness between 0.9 mm and 50 mm (Source: Wazir Report).
Established credentials in developed markets with repeat business from large-scale customers.
They have an extensive customer base and established strong relationships with a range of customers through their ability to offer basic to specialised PVC blend-based building material products, a solution-focused approach to meet their needs and co-developing products. This also enables them to cross-sell and upsell their products to their customers. They have a well-established global footprint, across 15 countries as of June 30, 2024. They sell their products to distributors, who further supply to traders, fabricators and retailers in their respective countries.
Risks of Kumar Arch Tech Limited IPO
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Restrictions on import of raw materials, sustained increase in the cost of resin and an increase in shipment cost may adversely impact their business, cash flows and results of operations.
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Their income and sales are subject to seasonal fluctuations and lower income in a peak season may have a disproportionate effect on their results of operations.
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They face foreign exchange risks that could adversely affect their results of operations and cash flows.
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Recent global economic conditions have been challenging and continue to affect the Indian market, which may adversely affect their business, financial condition, results of operations, cash flows and prospects.
Kumar Arch Tech Limited IPO Financials
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Peer Comparison
| Parameter | Kumar Arch Tech Limited | Century Plyboards (India) Limited | Greenply Industries Limited |
|---|---|---|---|
Revenue from Operations for the year ended March 31, 2024 (₹ in crores) | 407.877 | 3885.953 | 2179.920 |
P/E | - | 61.06 | 66.56 |
EPS (Basic) (₹) | 6.45 | 14.69 | 5.67 |
Return on Net Worth (%) | 48.52% | 14.76% | 9.86% |
NAV per share (₹) | 398.68 | 99.39 | 57.35 |
Anchor Investor Information
The Anchor Investor Bidding Date shall be one Working Day prior to the Bid/Offer Opening Date.
IPO Registrar and Book Running Lead Managers
Book running lead managers:
Motilal Oswal Investment Advisors Limited Equirus Capital Private Limited
Registrar for the IPO is KFin Technologies Limited
Business Model
The company earns its revenue through the following sources:
- Manufacturing PVC blend-based building material products, such as boards/sheets, mouldings, and wall and ceiling panels, which are supplied to residential, commercial, and industrial sectors for new construction and renovations in both domestic and international markets.
- Manufacturing profiles which comprise mouldings and door frames, and
- signage solutions.
Company Growth Trajectory
As of March 31, 2024, the share of PVC blend-based building material products exported from India to US markets by the company was 28% of the total export of PVC blend-based building material products, where the market for the PVC blend-based building material products is valued at US$ 1400 crores in 2023. It is the largest manufacturer and exporter of PVC blend-based building material products globally and is expected to reach US$ 1900 crores by 2028 with a CAGR of 6%, and the Indian PVC blend-based building material market is valued at US$ 130 crores in 2023 and is expected to reach US$ 290 crores by 2028 with a CAGR of 17% (Source: Wazir Report).
During fiscal 2024, 2023 and 2022, the aggregate installed capacity of their facilities was 27,600 MTPA, 27,600 MTPA, and 22,920 MTPA and their capacity utilisation in the same period was 65.30%, 52.03%, and 50.73% respectively. They are expanding their annual capacity by establishing a facility in Udaipur, Rajasthan with a proposed installed capacity of 90,000 MTPA and have acquired a strategically located facility in Virginia, USA.
Company Market Position
Kumar Arch Tech Limited is the largest manufacturer and exporter of PVC blend-based building material products in India, in terms of value, as of March 31, 2024.
They commanded 18% market share in the PVC blend-based building material products industry in India as of March 31, 2024, (Source: Wazir Report).
They are one of the fastest-growing players globally, having delivered revenue from operations at a CAGR of 27.59% between 2022 to 2024 (Source: Wazir Report). They are the largest player in India in terms of capacity in the PVC blend-based building material segment with a production capacity of 27,600 MTPA as on March 31, 2024 (Source: Wazir Report).
Kumar Arch Tech Limited Company Profit & Loss
| Parameter | FY22 | FY23 | FY24 |
|---|---|---|---|
Revenue from operations (₹ crores) | 250.564 | 407.255 | 407.877 |
Profit Before Tax (₹ crores) | 25.165 | 84.164 | 141.37 |
Net profit / (loss) (₹ crores) | 20.426 | 63.005 | 110.799 |
EBITDA (₹ crores) | 30.621 | 89.857 | 147.618 |
EPS (₹) | 1.19 | 3.67 | 6.45 |
Kumar Arch Tech Limited Company Cash Flow
| Parameter | FY22 | FY23 | FY24 |
|---|---|---|---|
Profit before tax (₹ crores) | 25.165 | 84.164 | 141.370 |
Net Cash from Operating Activities (₹ crores) | 1.225 | 44.281 | 56.317 |
Net Cash from Investing Activities (₹ crores) | 12.681 | 14.792 | 67.427 |
Net Cash from Financing Activities (₹ crores) | 12.215 | 2.440 | 0.322 |
Cash and Cash Equivalents (₹ crores) | 2.439 | 29.488 | 18.056 |
How To Check Allotment Status of Kumar Arch Tech Limited IPO?
You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar KFin Technologies Limited. To check the status on the BSE website:
- Visit the BSE website
- Click on “Investor Services” and choose “Application Status Check”
- Choose the issue type — Equity or Debt (Equity in this case)
- Select the Issue Name from the drop-down. The issue name is the company’s name, which is Kumar Arch Tech Limited
- Enter your application number or PAN number
- Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status
Follow these steps to know the allotment status on the registrar’s website:
- Visit the KFin Technologies Limited website
- Choose “Public Issues” from the “Investor Services” drop-down
- Select Kumar Arch Tech Limited from the drop-down
- Enter your PAN number or Application number
- Click on “Submit” to know the allotment status
Kumar Arch Tech Ltd IPO FAQs
What is the Kumar Arch Tech Limited IPO?
The Kumar Arch Tech Limited IPO has an issue size aggregating up to ₹740 crores. The IPO opens for subscription on TBA and closes on TBA.
Who is the Registrar for Kumar Arch Tech Limited IPO?
KFin Technologies Limited is the registrar for this IPO.
Where can I read more about Kumar Arch Tech Limited’s business?
You may read more about Kumar Arch Tech Limited and its IPO from the company’s draft red herring prospectus (DRHP) here: (SEBI | Kumar Arch Tech Limited - DRHP)
