IPO Details

Bidding Dates

To be announced

Minimum Investment

To be announced

Price Range

To be announced

Maximum Investment

To be announced

Retail Discount

To be announced

Issue Size

₹7,400.00 million

Investor category and sub category

To be announced

About Kumar Arch Tech IPO

Kumar Arch Tech Limited, a manufacturer of PVC blend-based building material products, has filed preliminary papers with SEBI for an IPO to raise ₹740 crore. The IPO includes a fresh issue of shares worth ₹240 crore and an offer-for-sale (OFS) of shares valued at ₹500 crore by its promoters. Additionally, the company may raise ₹48 crore through a pre-IPO placement, which would reduce the size of the fresh issue accordingly.

Proceeds from the fresh issue amounting to ₹182.09 crore will be used to invest in its subsidiary, Taylias Industry Private Limited, for funding capital expenditure related to a greenfield project for PVC-based product manufacturing.

Kumar Arch Tech’s product portfolio spans boards/sheets, profiles, and signage solutions. According to a Wazir report, US imports of PVC blend-based building materials grew at a 6% CAGR, while India’s exports to the US increased by 32%, reflecting Kumar Arch Tech's growing market presence. Motilal Oswal and Equirus Capital are managing the IPO.

Industry Outlook:

  1. The India building products market is projected to grow from US$18 billion in CY 2023 to US$27 billion by CY 2028, with a CAGR of 8%.
  2. India’s PVC blend-based building materials market is expected to rise from US$1.3 billion in CY 2023 to US$2.9 billion by CY 2028, growing at 17% CAGR.

Kumar Arch Tech IPO Objectives

The company plans to allocate the net proceeds from the issuance to the following purposes:

  1. Investment in the 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”).
  2. General Corporate Purposes.

About Kumar Arch Tech Limited

Kumar Arch Tech Limited is the largest manufacturer and exporter of PVC blend-based building material products in India, commanding an 18% market share as of March 31, 2024.

With over 22 years of experience, the company leverages its expertise in material science and R&D capabilities to develop proprietary formulations, allowing the blending of more than eight raw materials. Their diverse product portfolio includes boards, sheets, profiles, mouldings, door frames, and signage solutions, tailored to meet the needs of both international and Indian markets.

As of March 31, 2024, Kumar Arch Tech accounted for 28% of India’s exports of PVC blend-based building material products to the U.S., the largest global market. The company’s production capacity stands at 27,600 MTPA, making it a leader in India’s PVC building materials sector.

Kumar Arch Tech’s customer-centric approach, offering custom solutions, has led to a robust product portfolio of over 900 SKUs, fostering strong and lasting relationships.

How To Check the Allotment Status of the Kumar Arch Tech IPO?

Steps to check IPO allotment status on Angel One’s app:

  1. Log in to the Angel One app
  2. Go to the IPO Section and then to IPO Orders.
  3. Select the individual IPO that you had applied for and check the allotment status.
  4. Angel One will notify you of your IPO allotment status via push notification and email.

How to apply for Kumar Arch Tech IPO online?

  1. Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
  2. Locate the IPO Section: Navigate to the 'IPO' section on the platform.
  3. Select IPO: Find and select the Kumar Arch Tech IPO from the list of open IPOs.
  4. Enter the Lot Size: Specify the number of lots you want to bid for.
  5. Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
  6. Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.

Contact Details of Kumar Arch Tech IPO

  • Registered office: 302, Parshwnath Business Park, Survey No. 836, F P No. 1/2, Prahladnagar Vejalpur, Ahmedabad City – 380051, Gujarat, India
  • Phone: 0294 2941577
  • E-mail: cs@echon.co

IPO Financials

Particulars Year ending on March 31, 2024 Year ending on March 31, 2023 Year ending on March 31, 2022
Revenue from Operation (in ₹ million) 4,078.77 4,072.55 2,505.64
Profit After Tax (PAT) (in ₹ million) 1,107.99 630.05 204.26
Current Ratio (x) 2.63 1.88 1.26
Net Worth (in ₹ million) 2,283.43 1,173.74 537.84
Total Borrowings (in ₹ million) 300.64 293.97 296.03
Return on Equity (%) 64.10 73.62 46.93
Return on Capital Employed (RoCE) (%) 54.98 58.39 32.37
Earnings Per Share (in ₹) 6.45 3.67 1.19
Capacity (in MTPA) 27,600.00 27,600.00 22,920.00

Know before investing

Strengths

6

  1. Largest manufacturer and exporter of PVC blend-based building materials.

  2. Over 22 years of expertise in PVC product innovation and R&D.

  3. Holds 18% market share in India's PVC building material sector.

  4. A diverse portfolio of 900 SKUs across residential and industrial markets.

  5. Strong global presence, exporting to 15 countries, including the USA.

  6. State-of-the-art production capacity of 27,600 MTPA as of 2024.

Risks

6

  1. No long-term customer contracts; 22% revenue from top client.

  2. Significant reliance on imported raw materials (76.47% in 2024).

  3. Potential production disruptions at Udaipur facilities impact operations.

  4. Fluctuations in resin prices affect margins and financial performance.

  5. Pending compounding applications related to non-compliance issues.

  6. Market risk due to no prior public market for shares.

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Kumar Arch Tech IPO FAQs

What is the Kumar Arch Tech IPO?

Kumar Arch Tech IPO is a book built IPO. The IPO dates are yet to be announced.

When will Kumar Arch Tech IPO be allotted?

The Basis of Allotment date is yet to be announced.

When will Kumar Arch Tech IPO open for subscription?

The IPO subscription window dates are yet to be announced.

What minimum lot size can retail investors subscribe to?

The minimum lot size for retail investors is yet to be announced.

When will Kumar Arch Tech Limited list on exchanges?

The listing date for Kumar Arch Tech is yet to be announced.

What would be the listing gains on the Kumar Arch Tech IPO?

Listing gains cannot be ascertained before the listing of the IPO on the stock exchange. 

How to increase your chances of getting a Kumar Arch Tech IPO allotment?

  1. Multiple Submissions: Use different Demat accounts to make multiple applications.
  2. Higher Price Band Bidding: Opt for bidding at the cut-off price or higher price band.
  3. Timely Subscription: Ensure you subscribe to the IPO within the specified time frame.

How do I approve the UPI mandate request for Kumar Arch Tech IPO?

You must complete the payment process by logging in to your UPI handle and approving the payment mandate.

Can I submit more than one application for the public issue of Kumar Arch Tech Limited using one PAN?

You can submit only one application using your PAN card.

How to read Kumar Arch Tech Limited's financial statements?

To read Kumar Arch Tech’s financial statements, download the IPO’s  RHP document.