Sah Polymers Limited has come up with an initial public offer (IPO). It will open on December 30 – January 04 at Rs.61-65 a share. The IPO issue size is around Rs.66.30 crores. The minimum bid will be for 230 shares and in its multiples thereafter.
Overview
Sah Polymers Limited was incorporated in the year 1992. It is primarily engaged in the manufacturing and selling of Polypropylene (PP)/High-Density Polyethylene (HDPE) FIBC Bags, Woven Sacks, HDPE/PP woven fabrics based products of different weights, sizes and colors as per customer’s specifications. Also, it offers customized bulk packaging solutions to B2B manufacturers catering to different industries such as Agro Pesticides Industry, Basic Drug Industry, Cement Industry, Chemical Industry, Fertilizer Industry, Food ProductsIndustry, Textile Industry Ceramic Industry and Steel Industry. Besides, the company is a Del Credere Associate cum Consignment Stockist (DCA/ CS) of Indian Oil Corporation Limited and also operates as Dealer Operated Polymer Warehouse (DOPW) of Indian Oil Corporation Limited for their polymer division.
The company enters into arrangements as third-party manufacturers to manufacture its tape and fabric based on customers’ requirements. It has two business divisions (i) domestic sales; and (ii) exports. It has a presence in 5 states and 1 union territory for the domestic market based on sales made. Internationally, the company exports its products to 14 countries such as Algeria, Togo, Ghana, Poland, Portugal, France, Italy, Dominican Republic, USA, Australia, UAE, Palestine, UK and Ireland.
Presently, the company has one manufacturing facility with an installed production capacity of 3960 m.t.p.a. located at Udaipur, Rajasthan. Over the years, it has made investments, from time to time, in manufacturing infrastructure to support product portfolio requirements and its reach.
Website – https://sahpolymers.com/
Promoters
| SAT Industries Limited – 100.00% |
Promoter Holding
| Pre-Issue Shareholding – 100.00% | Post-Issue Shareholding – 60.46% |
Strength & Weakness
| Strengths | Weaknesses |
| Diverse product portfolio | Negative cash flows in the recent past, |
| Focus on quality | Competition from small & large players |
| Experienced management | require a number of approvals, NOCs, licenses, etc. |
| Dedicated employee base | Availed unsecured loans from banks |
| Diversified customer base | Have certain contingent liabilities |
| In the process of, expanding manufacturing capacities | Requires significant amounts of working capital |
Products
| Container bag | PP woven Fabric |
| HDPE Woven Fabric | Woven Sacks |
| PP Fabric | Flexible Intermediate Bulk Containers |
| Fabric Rolls | Bags for Flexible Packaging |
Competitors
| Kanpur Plastipack Ltd. |
| Rishi Techtex Ltd. |
| Jumbo Bag Ltd. |
| SMVD Polypack Ltd. |
| EMMBI Industries Ltd |
| Commercial Syn. Bags Ltd. |
Company Financials
| Year | Revenue (in Crore) | Profit (in Crore) |
| 31-Mar-2020 | 49.91 | 0.30 |
| 31-Mar-2021 | 55.34 | 1.27 |
| 31-Mar-2022 | 81.23 | 4.38 |
| 30-Jun-2022 | 27.59 | 1.25 |
Objects of Issue
1) Setting up of a new manufacturing facility to manufacture a new variant of FIBC
2) Repayment of certain secured and unsecured borrowings in full availed by the company
3) Funding the working capital requirements of our Company
4) General corporate purposes.
Sah Polymers IPO Lot Size
| Application | Lot | Shares | Amount |
| Retail (Min) | 1 | 230 | Rs.14,950 |
| Retail (Max) | 13 | 2,990 | Rs.1,94,350 |
| S-HNI (Min) | 14 | 3,220 | Rs.2,09,300 |
| B-HNI (Max) | 67 | 15,410 | Rs.10,01,650 |
Sah Polymers IPO Details
| IPO Opening Date | December 30, 2022 |
| IPO Closing Date | January 04, 2023 |
| Face Value | Rs.10 per Equity Share |
| IPO Price | Rs.61-65 per share |
| Market Lot | 230 shares |
| Minimum Order Quantity | 230 shares |
| Listing At | NSE, BSE |
| Fresh Issue | 1,02,00,000 shares |
| Issue Size | Up to Rs.66.30 Crore |
| QIB Shares Offered | 75% of the offer |
| Retail Shares Offered | 10% of the offer |
| NII/HNI Shares Offered | 15% of the offer |
Sah Polymers IPO Timetable
| IPO Date | Dec 30 – Jan 04, 2022 |
| Allotment Date | January 09, 2022 |
| Initiation of Refunds | January 10, 2022 |
| Credit of share to Demat a/c | January 11, 2022 |
| IPO Listing Date | January 12, 2022 |
Sah Polymers IPO GMP
| The current GMP is around Rs.6 |
Allotment Status
Link Intime – https://linkintime.co.in/
Book Lead Managers
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