Sah Polymers Limited’s Initial Public Offering to open on December 30, 2022

Ahmedabad: Sah Polymers Limited, primarily engaged in manufacturing and selling of Polypropylene (PP)/ High Density Polyethylene (HDPE) Flexible Intermediate Bulk Containers (FIBC) Bags, Woven Sacks, HDPE/PP woven fabrics, woven polymer based products has fixed the price band at Rs 61 to Rs 65 per Equity Share for its maiden public offer. The initial public offering (“IPO” or “Offer”) of the Company will open on Friday, 30th December, 2022, for subscription and closes on Wednesday, 4th January, 2023. Investors can bid for a minimum of 230 Equity Shares and in multiples of 230 Equity Shares thereafter, the company said in a statement.

The public issue with a face value of Rs 10 per equity share consists of a fresh issue of equity shares of upto 102,00,000 equity shares, with no offer for sale component.

The press release said, “Sah Polymers is led by Asad Daud and professionally backed by Hakim Sadiq Ali Tidiwala and Murtaza Ali Moti with a combined expertise of approximately 20 years in the FIBC packaging sector. The Company provides tailored bulk packaging solutions to business-to-business (“B2B”) producers in a variety of industries, including agro pesticides, basic drugs, cement, chemicals, fertilisers, food products, textiles, ceramics, and steel.”

“The Company exports its products to 14 countries including USA, UK, Australia, UAE, Africa, France and Poland. Majority of the sales of the Company comes from exports. For the 3 months ended June 30, 2022 and for Fiscals 2022, the Company’s revenue from exports contributed 57.61% and 55.14%, respectively, of total revenues from operations,” the release further said. 

According to the company, “Pantomath Capital Advisors Private Limited is the sole book running lead manager to the issue and Link Intime India Private Limited is the registrar to the offer. The equity shares are proposed to be listed on the Main Board of NSE and BSE. The total equity issued before IPO is 15.59 crores and along with reserves the net-worth is Rs 27.74 crores as at the end of the 30th June 2022. Post IPO, the Company’s net-worth shall stand at Rs 92.95 crores. The Book value post IPO would be 36 plus the profit surplus for the period.”

“The Issue comprises of only fresh issue of up to 1,02,00,000 Equity Shares for cash at upper price band of Rs. 65/- per Equity Share (including a premium of Rs. 55/- per Equity Share, aggregating up to Rs. 66 crores. The Issue shall constitute 39% of the post-Issue paid-up Equity share capital of the Company. Notably, the issue involves all fresh issue without any offer for sale component. Out of the issue proceeds, Rs. 8.18 crores shall be utilized for capex for setting up of new manufacturing unit; Rs. 19.66 shall be towards repayment of debt, Rs. 14.95 crores for working capital and balance for general corporate purposes.  The debt repayment is towards the bridge loan from the holding company which was deployed in the capex,” said the company statement.