Polymatech Electronics Unlisted Shares. (ESTD-2007)
Polymatech Electronics Ltd. (ESTD-2007)
INE0OLN01011
Listing Status: DRHP Not Filed
About Polymatech Electronics Unlisted Shares. (ESTD-2007)
Overview of Polymatech Electronics Unlisted Shares. (ESTD-2007)
Incorporation and Headquarters: Polymatech Electronics Limited was incorporated as a Private Limited company on May 29, 2007, and is headquartered in Oragadam, Kancheepuram.
India's First Opto-Semiconductor Chips Manufacturer: Polymatech commenced the production of opto-semiconductor chips in 2019, utilizing the latest European and Japanese technologies.
Formation and Early Products: Established in 2007, Polymatech Electronics Limited was a foreign-owned company promoted by Polymatech Co. LTD., Japan, and Polymatech (Malaysia) SDN. BHD., Malaysia. Initially, it produced rubber sheets for mobile applications, known as 'rubber keypads.' Production ceased in December 2010 due to declining demand.
Acquisition and Ownership Changes:
- 2016: Mr. Eswara Rao Nandam, through Sensa Integrated Township SDN. BHD., signed a Share Purchase Agreement on December 7, 2016, to acquire Polymatech from the foreign shareholders.
- 2017: The agreement was modified on November 28, 2017, replacing Sensa Integrated Township SDN. BHD. with Mr Eswara Rao Nandam and Ms Uma Nandam as individual owners. The ownership was restructured to allocate 52.20% to Mr Eswara Rao Nandam and 47.80% to Ms Uma Nandam.
Current Operations: Polymatech designs, fabricates, manufactures, packages, and assembles opto-semiconductor chips in-house. These chips are sold directly to customers and used in luminaries assemblies, LEDs and light-detecting devices.
Customer Base: Includes multinational corporations, some of which are Fortune 1000 companies.
Manufacturing Facilities: With a production capacity of 2,000 million chips, it exports over $125 million annually.
Plant 1: Located in Oragadam, Sriperumbudur, the biggest automobile hub in South Asia, one of the fastest-growing suburbs of Chennai and is evolving into a multi-faceted industrial zone.
Plant 2: Coming up at the bottom of Krishnadevaraya Hills, Krishnagiri, Tamil Nadu is located 250 km from Chennai, and 90 km from Bengaluru.
Insights of Polymatech Electronics Unlisted Shares. (ESTD-2007)
Standalone Financial Highlights:
- The company's core business operations have seen a significant increase, almost doubling. This indicates strong market demand, better product performance, or expansion into new markets. Other income also increased from 64 lakhs to 16.95 Cr in year 2024
- Total expenses have more than doubled, likely due to higher operating costs, increased raw material prices, or higher workforce expenses. However, the rise in expenses is proportionate to the growth in revenue, suggesting efficient management.
- Despite increased expenses, the company managed to grow its profitability before tax by nearly 62%. This reflects improved operational efficiency and cost management.
- Net profits post-tax have grown substantially. This shows strong bottom-line growth, though the percentage increase in PAT is lower than PBT due to a possible higher tax outlay in 2024.
- A massive increase in reserves suggests the company retained a larger portion of its earnings. This could be used for future expansion, debt reduction, or as a buffer for uncertainties
NOTES:
- Company directors did not recommend any dividend for the financial year ended 31.03.2024
- The number of equity shares increased to 7,96,87,775 equity shares of ₹10 each from 7,18,76,200 equity shares of ₹10 each as of March 31, 2023
- Statutory Auditor of POLYMATECH ELECTRONICS LTD resigned on 29th of October
- As on March 31, 2024, the Company does not have any subsidiary, Joint Venture or Associate Companies.
- Promoter holding in the company decreased from 88.29% to 79.63 % in FY24
Investment in Listed Entity
Polymatech Electronics Ltd, holds 56,25,000 Shares Comprising 24% of paid up Equity of Artificial Electronics Intelligent Material Limited (AEIM) Having Current Market Price of Rs 292 as on 09/11/2024
Total Value of Investment as on 09/11/2024 is 164.25 Cr
Intrinsic Worth Per Share considering Number of Equity Share as (79687775) on 31/4/2024 is Rs 20.61/Share
Particulars |
31st March, 2023 |
31st March, 2022 |
% increase |
Revenue |
649 |
126 |
415% |
PAT |
166 |
34 |
388% |
EPS |
23.80 |
5.48 |
|
EBITDA |
185.41 |
39.45 |
370% |
PAT Margins |
25% |
26% |
Industry Overview: Semiconductor Market Trends
The semiconductor industry is at the heart of technological advancements, driving innovations in sectors such as automotive, mobile devices, computing, IoT, and communications infrastructure. Polymatech, a key player in this industry, is leading transformative changes with its cutting-edge semiconductor solutions. In a first, Polymatech has rolled out Made in India semiconductor chips and they are also revolutionizing healthcare with Polymatech’s Vein Detection Light.
Key Pointers
- In 2024, the semiconductor industry is poised for a robust recovery:
- Sales are forecasted to hit US$588 billion, marking a 13% uptick from 2023 and a 2.5% increase compared to the record revenues of US$574 billion in 2022.
- Despite a 31% decline in 2023, the memory chip market is anticipated to rebound to 2022 levels.
- PC and smartphone sales are set to grow by 4% each, vital for the industry, as they constituted 56% of overall semiconductor sales in 2022.
- However, challenges persist with high inventories lingering into fall 2023, posing hurdles for sales in early 2024. Furthermore, fab utilization is expected to dip below 70% in Q4 2023, impacting profitability, and highlighting the need for higher utilization rates to restore profitability.
Industry Outlook Themes
The semiconductor industry outlook for 2024 focuses on five key themes:
- Generative AI accelerator chips and their usage by semiconductor companies.
- Trends in smart manufacturing within the semiconductor industry.
- The growing need for more assembly and test capacity worldwide.
- Cybersecurity concerns regarding chip industry intellectual property (IP) as a target for cyberattacks.
- Geopolitical factors, including export controls around advanced node manufacturing equipment and technologies, as well as advanced generative AI semiconductors.
Sectors
IPO Plans
Polymatech, a semiconductor chip manufacturer, intends to raise Rs.1500 Crores through an Initial Public Offering (IPO) by the year's end. In October 2023, Polymatech filed its Draft Red Herring Prospectus (DRHP) to raise Rs.750 Crores, but the IPO size has now doubled.
The company plans to refile the DRHP with the Securities and Exchange Board of India (SEBI) using their financials from either March or June. In FY24, Polymatech witnessed a significant revenue surge, doubling from Rs.650 Crores in FY23 to Rs.1200 Crores, boasting a PAT margin of 25%.
Expansion Plans
Currently producing 2 billion chips with two plants in Tamil Nadu, Polymatech aims to scale up production to 20 billion chips within six years. To achieve this, the company will establish a wafer fabrication and packaging facility, requiring a $5 billion investment, partly funded by the IPO.
Collaboration with Orabay
- Polymatech Electronics, India’s leader in opto-semiconductor chips, has partnered with Japanese firm Orbray Co. Ltd, aiming to become a fully integrated semiconductor company.
- Under the MoU, Orbray will train Polymatech's engineers in Japan, while Polymatech will install sapphire ingot growing and wafer fabrication machinery in Chennai by March 2025.
- Eswara Rao Nandam, Polymatech Electronics' CEO, sees this as a significant step towards their vision. Orbray, an 85-year-old precision components manufacturer, brings expertise in optical fiber components, Sapphire Wafers, and micro-motors.
Financial Charts of Polymatech Electronics Unlisted Shares. (ESTD-2007)
Balance Sheet of Polymatech Electronics Unlisted Shares. (ESTD-2007)
Profit and Loss of Polymatech Electronics Unlisted Shares. (ESTD-2007)
Ancillary of Polymatech Electronics Unlisted Shares. (ESTD-2007)
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Peers
Industry Benchmarking
Segment Revenue
Subsidaries
Security Allotment
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Team Management Details
FAQs of Polymatech Electronics Unlisted Shares. (ESTD-2007)
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How to buy Polymatech Electronics Ltd. (ESTD-2007)?
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How to sell Polymatech Electronics Ltd. (ESTD-2007)?
Below are three ways through which you can sell Polymatech Electronics Ltd. (ESTD-2007):
- We at Altius Investech have many actively traded scripts and are market makers of unlisted shares. To check out all the unlisted shares traded. (Click on link). To submit a request to sell Polymatech Electronics Ltd. (ESTD-2007), please click on the trade button at the top of this page
- Additionally, you can download our app from your play store or app store, register on our application, and engage in active trading there.
Download the Altius App here https://onelink.to/hf4m72 - You can also reach out to us at : +91 8240614850 / +91 8240861716
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What is the price of Polymatech Electronics Ltd. (ESTD-2007)?
We provide a two way quote on all the shares we deal in. Your buy price for Polymatech Electronics Ltd. (ESTD-2007) is ₹535 and your sell price for Polymatech Electronics Ltd. (ESTD-2007) is ₹485. The price is based on our estimates and market conditions.
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What is the lock-in period of Polymatech Electronics Ltd. (ESTD-2007)?
The lock-in period for Polymatech Electronics Ltd. (ESTD-2007) varies depending on the category of investors:
- For retail Investors, HNIs, or Body Corporates, the lock-in period is 6 months from the date of the listing of Polymatech Electronics Ltd. (ESTD-2007)
- For Venture Capital Funds or Foreign Venture Capital Investors, there is a lock-in period of 6 months from the date of acquisition of Polymatech Electronics Ltd. (ESTD-2007)
- For AIF-II (Alternative Investment Funds - Category II), there is no lock-in period
August 2021 saw the introduction of this regulation by SEBI. The purpose of the regulation change, which lowered the lock-in period from a year to six months, was to incentivize additional investments in firms getting ready for initial public offerings, or IPOs. Since its introduction, a number of Portfolio Management Services (PMS) have advised their clients to purchase Pre-IPO shares in order to take advantage of the advantages associated with early-stage investments. This reduction in the lock-in period is considered as a significant step forward.
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How is the Polymatech Electronics Ltd. (ESTD-2007) price calculated?
Fundamental & Comparative valuation models and the forces of demand and supply in the market for unlisted shares dictate the price. These prices are based on our estimates and transaction history of Polymatech Electronics Ltd. (ESTD-2007). The price is also determined from the most recent funding round for Polymatech Electronics Ltd. (ESTD-2007). This provides us with a benchmark valuation, offering a clear indication of the company's current market value as perceived by investors and industry experts.
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What are the lot sizes of Polymatech Electronics Ltd. (ESTD-2007)?
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What are the financials of Polymatech Electronics Ltd. (ESTD-2007)?
The financials of Polymatech Electronics Ltd. (ESTD-2007) which includes the P/L of Polymatech Electronics Ltd. (ESTD-2007) and the Balance Sheet of Polymatech Electronics Ltd. (ESTD-2007) is in the financials section (Click on link).
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Where can I find the annual report of Polymatech Electronics Ltd. (ESTD-2007)?
The annual report of Polymatech Electronics Ltd. (ESTD-2007) is available in the annual report section (Click on link).
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Is buying Polymatech Electronics Ltd. (ESTD-2007) legal in India?
Yes, buying and selling unlisted shares in India is indeed 100% legal. This activity is regulated and governed under the guidelines provided by the Securities and Exchange Board of India (SEBI). Investors and traders must adhere to these regulations and guidelines to ensure compliance with legal and financial standards. It's important for participants in the unlisted share market to be aware of and understand these regulations to engage in transactions legally and securely.
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Short-term Capital Gain taxes to be paid on Polymatech Electronics Ltd. (ESTD-2007)?
When you sell unlisted shares within a period of two years from the date of acquisition, any profit earned from the sale is classified as Short-term Capital Gain (STCG). This gain is then added to your total income for that financial year. The tax on this short-term capital gain is calculated based on your applicable individual income tax slab rates. Therefore, the rate at which you will pay tax on the STCG from unlisted shares depends on your total income, including this gain, and the tax slab it falls under as per the prevailing income tax laws in India. It's important for investors to consider these tax implications when engaging in transactions involving unlisted shares.
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Long-term Capital Gain taxes to be paid on Polymatech Electronics Ltd. (ESTD-2007) and how are They Taxed?
Long-term Capital Gains (LTCG) on unlisted shares in India refer to the profits earned from the sale of unlisted shares that have been held for more than two years. The key aspects of LTCG on unlisted shares include:
- Tax Rate: LTCG on unlisted shares is taxed at a rate of 20%.
- Indexation Benefit: This is a significant advantage for investors. Indexation allows for adjusting the purchase price of the shares for inflation, which can reduce the taxable gain.
- Importance for Investors: Understanding LTCG is crucial, especially for High Net-worth Individuals (HNIs) and retail investors, as it impacts their investment strategy and tax planning. Knowing these details helps in making informed investment decisions.
- Calculation: LTCG is calculated by subtracting the indexed cost of acquisition (the purchase price adjusted for inflation) from the sale price of the shares. The profit thus calculated is subject to a 20% tax.
- Applicability: LTCG tax is applicable to profits from the sale of unlisted shares held for more than two years.
- Relevance: This tax is particularly relevant to investors in the unlisted share market, including those considering selling their holdings after a period of more than two years.
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Applicability of Taxes on Polymatech Electronics Ltd. (ESTD-2007) once it is listed?
When shares initially bought in the unlisted market become listed, the taxation rules change significantly if these shares are sold through a stock exchange. Here's what investors need to know:
Transition to Listed Market Tax Rates: Once unlisted shares are listed on the stock exchange and subsequently sold, the tax rates applicable to listed securities come into effect. This shift means that the favourable tax treatments for listed shares, as per the prevailing tax laws, will apply.
Taxation Based on Holding Period: The crucial factor in determining the type of capital gains tax (Long-term or Short-term) is the holding period of the shares. Importantly, this period is calculated from the original purchase date when the shares were unlisted.
Long-term vs. Short-term Capital Gains: If the shares are sold after being held for more than one year from the date of purchase (including the period when they were unlisted), they are subject to Long-term Capital Gains (LTCG) tax.
Conversely, if sold within one-year, Short-term Capital Gains (STCG) tax rates apply.
Significance for Investors: This information is vital for investors in the unlisted market, as it impacts their tax planning and decision-making process. Understanding these nuances ensures that investors can strategically plan the sale of their shares post-listing to optimize tax implications.
Advice for Investors: It's advisable for investors to keep a record of their purchase dates and monitor the listing dates closely. Additionally, staying updated with the latest tax regulations or consulting with a financial advisor is recommended for accurate tax calculations and compliance. -
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At Altius Investech, our approach to sourcing Boat Unlisted Share (Imagine Marketing) involves a strategic and direct method. Primarily, we acquire these shares from the below key groups:
Employees of the Company: Employee stock option plans (ESOPs) or other compensation packages frequently include shares for firm employees. For a various reasons, such as including portfolio diversification or financial considerations, some of these employees may eventually choose to sell their shares. We engage with these employees, providing them a platform to sell their shares.
Initial Investors: These are the angel or early-stage investors who provided capital to the business in its early stages. These original investors may look to sell all or part of their ownership position in the company as it develops and flourishes. This might be done for various reasons such as in order to maximise their investment, reallocate resources, or make other calculated financial decisions.
Funding rounds and VC funds: Altius Investech sources the shares from private placement rounds in which private companies seek to obtain capital from the market. Through our platform, venture capital funds can liquidate their shares and we receive the inventory from them when they decide to sell a portion of their ownership through block trades.
By establishing connections with these groups, Altius Investech guarantees our clients a steady and dependable supply of Boat Unlisted Share (Imagine Marketing). This process not only makes it easier for employees and initial investors in liquidating their assets, but it also gives our clients access to shares that aren't often found on the open market. Our platform effectively facilitates a win-win situation for both buyers and sellers. -
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