Sah Polymers gets SEBI nod for IPO

A view of Sah Polymers plant

Sah Polymers gets SEBI nod for IPO

Fresh issue, no OFS

Apart from meeting domestic demand, Sah Polymers supplies its products in to Africa, the Middle East, Europe, The United States, Australia, and Caribbean

MUMBAI, Nov 7 (The CONNECT) - Leading manufactuer of PP woven fabrics Sah Polymers Limited, Securities and Exchange Board of India's (SEBI) observations for its IPO.

The company is 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 and woven polymer-based products.

The IPO consists of a fresh issue of 102,00,000 equity shares, with no offer for sale component. The issue has a face value of Rs 10 per equity share for the proposed share sale. Sah Polymers obtained its observation letter yesterday, an update with SEBI showed.

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.

According to the Packaging Industry Association of India, the India Packaging Market was valued at $50.5 billion in 2019, and it is expected to reach $204.81 billion by 2025, registering a CAGR of 26.7% from 2020 to 2025. Packaging is one of the high growth industries in India and is developing at 22‐25% per annum and is becoming a preferred hub for the packaging industry. Currently the 5th largest sector of India's economy, the industry has reported steady growth over past several years and shows high potential for much expansion, particularly in the export market. Costs of processing and packaging food can be up to 40% lower than parts of Europe which, combined with India's resources of skilled labour, make it an attractive venue for investment. A high degree of potential exists for almost all user segments which are expanding appreciably - processed foods, hard and soft drinks, fruit and marine products.

The Udaipur-based company has two business division namely Domestic sales and exports and has presence in six states and one union territory. 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.

Revenue from operations climbed 12.16 percent from Rs 49.10 crore in Fiscal 2020 to Rs 55.07 crore in Fiscal 2021, attributable to an increase in sales of manufactured goods which included HDPEC and LDPE bags. Revenue for the nine months ended December 2021 stood at Rs 54.01 crore. The Consolidated Revenue of the Company for the nine month ended December 2021 stood at Rs. 64.78 Crores.

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.

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