Sah Polymers IPO subscribed 2.37 times

The offer received bids for 1.33 crore shares as against 56.10 lakh shares on offer.

The initial public offer (IPO) of Sah Polymers received bids for 1,33,06,420 shares as against 56,10,000 shares on offer, according to stock exchange data at 17:00 IST on Monday (2 January 2023). The issue was subscribed 2.37 times.

The issue opened for bidding on Friday (30 December 2022) and it will close on Wednesday (4 January 2023). The price band of the IPO is fixed at Rs 61-65 per share. An investor can bid for a minimum of 230 equity shares and in multiples thereof.

The offer comprises fresh issue of 1.02 crore equity shares. At the upper price band of Rs 65, the IPO size aggregates to Rs 66.30 crore.

The company proposes to utilize the net proceeds of the fresh issue towards setting up of a new manufacturing facility to manufacture new variant of flexible intermediate bulk containers (FIBC) amounting Rs 8.17 crore, repayment of certain secured and unsecured borrowings in full availed by the company amounting Rs 19.66 crore, funding the working capital requirements of the company amounting Rs 14.96 crore and balance towards general corporate purposes.

Ahead of the IPO, Sah Polymers on Thursday, 29 December 2022, raised Rs 29.83 crore from anchor investors. The board allotted 45.90 lakh shares at Rs 65 each to three anchor investors.

Sah Polymer is primarily engaged in manufacturing and selling of polypropylene (PP), high density polyethylene (HDPE) FIBC (flexible intermediate bulk containers) bags, woven sacks, HDPE and PP(poly propylene) woven fabrics, based products of different weight, sizes and colours.

The company offer customised 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.

The company reported a net profit of Rs 1.25 crore and revenue from operations of Rs 27.22 crore for the period ended on 30 June 2022.

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