Overview
Chennai-based Polymatech Electronics Pvt Ltd has announced plans to raise $500 million in capital to support its ongoing expansion in the semiconductor and module manufacturing space. The company is in the advanced stages of closing the first round of $250 million, according to its Managing Director and CEO, Eswara Rao Nandam.
Polymatech has engaged bankers and shortlisted three institutional investors for the transaction. The raised capital will primarily be used to meet capital expenditure requirements and fund new manufacturing facilities.
Capital Plan and Timeline
According to the management, there has been significant investor interest in the company’s growth plans. Nandam stated that Polymatech has received interest for over $1 billion and anticipates completing the capital infusion before March 2026.
The company also plans to raise an additional $250 million by late 2026 or early 2027, which may be structured as a pre-IPO placement. Together, these rounds will contribute to the company’s long-term funding roadmap for global expansion.
Investment and Facilities
Polymatech has outlined a total investment plan of approximately $1.7 billion over the next few years. The company intends to open new facilities and expand existing operations, with part of the investment directed toward a new manufacturing unit in Chhattisgarh.
Its existing Oragadam facility near Chennai handles ingot, wafer, chip, and module assembly. Polymatech also operates international facilities in France, Bahrain, California, and Texas, primarily focused on chip equipment manufacturing.
The company expects to meet its remaining capital needs through internal accruals, highlighting operational self-sufficiency.
Product and Technology Focus
Polymatech manufactures compound semiconductor resins, ingots, wafers, and devices used in a variety of applications including specialised lighting, electric vehicles, 5G and 6G communications, and quantum security systems currently under development.
These technologies form part of the company’s broader strategy to participate in advanced electronics and next-generation semiconductor ecosystems.
Financial and Regulatory Updates
Polymatech aims to achieve $1 billion in revenue by 2026, aligning with the commencement of final product shipments. The company also benefits from various government incentive programmes such as India Semiconductor Mission 2.0 and state-level manufacturing incentives.
Earlier, Polymatech had filed a Draft Red Herring Prospectus (DRHP) to raise about ₹700 crore, but later withdrew the proposal.