Retail Rush For Sah Polymers IPO

Retail Rush For Sah Polymers IPO

Overall, 86% subscription on Day 1

Sah Polymers has already raised Rs 29.83 crore from anchor investors including Mavin India Fund, Saint Capital Fund and Leading Light Fund VCC

MUMBAI, Dec 30 (the CONNECT) – Polypropylene woven fabrics major  Sah Polymers Limited today received bids of 48,04,470 shares against the offered 56,10,000 equity shares, at a price band of ₹61-65 for its IPO.

According to the data available on the stock exchanges, the issue was subscribed 0.86 times on the first day of bidding today. The issue is open till Tuesday, January 3.

The retail portion was subscribed the most with 2.07 times followed by Non-Institutional segment was fully subscribed. The reserved portion for qualified institutional buyer portion saw a subscription of 0.38 times. The issue kicked off for subscription on Friday, December 30, and will close on Tuesday, January 03, 2023.

A day prior to the Issue opening, Sah Polymers Ltd raised Rs 29.83 crore from anchor investors including Mavin India Fund, Saint Capital Fund and Leading Light Fund VCC.

Broking house Marwadi Financial Services have given a “Subscribe” rating to the issue.

A note by Reliance Securities states “ the polymer market size is expected to reach $790bn by 2027, growing at a CAGR of 5.5% during the period of 2022-27. Additional states “ The global market for FIBC is estimated to from $6701.5 mn in 2022 to $9109.7mn by 2028 and is likely to aid the company’s growth.  While the company has a quality product mix, strong customer base across geographies, good financials and a wide product portfolio, the issue seems pricey on on the current financials”

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 BSE and NSE.

Sah Polymers is led by Asad Daud, and Hakim Sadiq Ali Tidiwala, 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. It is also a Del Credere Associate cum Consignment Stockist (DCA/ CS) of Indian Oil Corporation Limited, as well as a Dealer Operated Polymer Warehouse (DOPW) of Indian Oil Corporation’s polymer division.

The Udaipur-based company has two business division namely Domestic sales and exports. Based on sales, it has presence in six states and one union territory for its local market. Internationally, it supplies its products in six regions: Africa, the Middle East, Europe, The United States, Australia, and Caribbean. For the nine months ended December 31, 2021 and fiscal 2021, exports contributed 37.40 percent and 46.80 percent, respectively.

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