Sah Polymers IPO will open for subscription from 30 December 2022. the company aims for an issue size of ₹66.30 Cr through this IPO.
About Company
The company is primarily engaged in manufacturing and selling Polypropylene (PP)/High-Density Polyethylene (HDPE) FIBC Bags, Woven Sacks, and HDPE/PP woven fabrics, and based products of different weights, sizes, and colors. It offers customized bulk packaging solutions to business-to-business (B2B) manufacturers catering to different industries such as Agro Pesticides Industry, Basic Drug Industry, Cement Industry, Chemical Industry, Fertilizer Industry, Food Products Industry, Textile Industry Ceramic Industry and Steel Industry. Sah Polymers is also a Del Credere Associate cum Consignment Stockist (DCA/ CS) of Indian Oil Corporation and operates as Dealer Operated Polymer Warehouse (DOPW) of Indian Oil Corporation Limited for their polymer division.
Sah Polymers 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. Internationally, it exports products to 14 countries such as Algeria, Togo, Ghana, Poland, Portugal, France, Italy, Dominican Republic, USA, Australia, UAE, Palestine, UK, and Ireland. For the three months ended 30 June 2022, its revenue from exports contributed 57.61% of revenue from operations.
Basic details about the company
| Full name | Sah Polymers Limited |
| Sector | Plastic Products |
| Industry | Plastic Products |
| Company Website | https://sahpolymers.com/ |
The objective of the Issue
- Setting up a new manufacturing facility to manufacture a new variant of Flexible Intermediate Bulk Containers (FIBC).
- Repayment/ Prepayment of certain secured and unsecured borrowings in full or part availed by the Company and the Subsidiary Company.
- Funding the working capital requirements of the Company.
- General corporate purposes.
Major Competitive strengths
- Experienced management team and employee force.
- Quality customer base across geographies and industries.
- Good product portfolio.
IPO Timetable
| IPO Opening date | 30 December 2022 |
| IPO Closing | 04 January 2023 |
| Basis of Allotment | 09 January 2023 |
| Initiation Refund | 10 January 2023 |
| Credit to Demat Account | 11 January 2023 |
| Listing Date | 12 January 2023 |
IPO details
| Issue type | Book Built Issue IPO |
| IPO issue size | ₹66.30 Cr – 10,200,000 shares |
| Fresh Issue | ₹66.30 Cr – 10,200,000 shares |
| Offer for sale | Nil |
| Face value | ₹10 per share |
| Price band | ₹61 to ₹65 per share |
| Lot size | 230 Shares |
| Retail Allocation | 10% |
| Listing Exchange | NSE & BSE |
IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 230 | ₹14,950 |
| Retail (Max) | 13 | 2990 | ₹194,350 |
| S-HNI (Min) | 14 | 3,220 | ₹209,300 |
| B-HNI (Min) | 67 | 15,410 | ₹1,001,650 |
Reservation Details
| QIB Shares Offered | 75% |
| NII (HNI) Shares Offered | 15% |
| Retail Shares Offered | 10% |
Financial Performance
| FY 2020 | FY 2021 | FY 2022 | Q1 FY 2023 | |
| Revenue | 49.10 | 55.07 | 80.51 | 27.22 |
| Expenses | 49.40 | 53.72 | 75.74 | 25.87 |
| Net income | 0.30 | 1.27 | 4.38 | 1.25 |
| Margin (%) | 0.6 | 2.3 | 5.4 | 4.6 |
Valuations & Margins
| FY 2020 | FY 2021 | FY 2022 | |
| EPS | 0.19 | 0.82 | 2.81 |
| PE ratio | – | – | 21.71 – 23.13 |
| RONW (%) | 1.58 | 6.33 | 16.42 |
| NAV | 17.09 | ||
| ROCE | 0.09 | 0.10 | 0.14 |
| EBITDA (%) | 5.32 | 5.99 | 9.61 |
| Debt/Equity | 0.55 | 0.69 | 1.15 |
Company Promoters
- Sat Industries Limited
Promoter Holding
| Pre Issue Share Holding | 100% |
| Post Issue Share Holding | 60.46% |
Lead Manager(s)
- Pantomath Capital Advisors Pvt Ltd
IPO Registrar
Link Intime India Private Limited
C-101, 1st Floor, 247 Park
L.B.S. Marg, Vikhroli West
Mumbai – 400 083, Maharashtra
Phone: +91 22 4918 6000
Email: sahpolymers.ipo@linkintime.co.in
Website: www.linkintime.co.in
Contact Details
SAH POLYMERS LIMITED
121, B-Wing,
Mittal Tower, Nariman Point,
Mumbai- Maharashtra-400021
Phone: +91 22 22042019
Email: cs@sahpolymers.com
Website: www.sahpolymers.com
Allotment Status
Sah Polymers IPO allotment will be available on Link Intime’s website. Click on Link Intime IPO weblink to get allotment status.
Final thoughts
Sah Polymers IPO is going to hit Dalal street soon. applying for IPO is purely a personal choice. study well about the company and do subscribe if you are feeling good about the company. I hope this post will give you enough details to make a fundamental study of the company. learn well and make wise decisions.
Happy Investing
