Sah Polymers provides tailored bulk packaging solutions to B2B producers in a variety of industries,
MUMBAI, Dec 26 (The CONNECT) – Bulk packaging solutions provider Sah Polymers Limited has fixed the price band at ₹61 to ₹65 apiece for its initial public offering (IPO) which will open on December30, 2022, and close on Wednesday, January 4, 2023. Investors can bid for a minimum of 230 Equity Shares and in multiples of 230 Equity Shares thereafter.
The public issue with a face value of Rs 10 per equity share consists of a fresh issue of equity shares of up to 102,00,000 equity shares, with no offer for sale component.
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 flexible intermediate bulk container (FIBC) packaging sector.
The Company provides tailored bulk packaging solutions to 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 Company’s sales have grown from Rs. 49.90 crores in FY 2020 to Rs. 81.23 crores in FY 22. The sales for the quarter ended June 2022 stood at Rs.27.59 crores. Thus the sales CAGR for last three completed years is 27.6%. Similarly, the post-tax profits, i.e., PAT of the Company has increased with CAGR of 284% over last three years.
The Company operates at 85% to 92% of the installed capacity and therefore going for further capex of Rs. 33.81 crores, out of which the company has taken bridge loan of Rs. 15.71 crores from the holding company. The new Project is estimated to commence commercial operations within this fiscal itself.
Out of the current manufacturing facility (located at Mewar Industrial Area, Madri, Udaipur, Rajasthan) the Company manufactures a diverse range of HDPE/PP Woven Sacks and FIBC products with filling capacity of upto 500 KGs per bag/sack. The Company intends to manufacture new variant of FIBC products with filling capacities of upto 2,500 KGs out of the new Unit. The installed capacity of the new Unit is of 3,960 MT per annum, which is equivalent to current capacity therefore the company’s capacity will double upon commissioning of new plant.
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 will be 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.
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.