Sah Polymers IPO: GMP, subscription status on day 2 of the issue


The initial public offer (IPO) of Sah Polymers was subscribed 86 per cent on the first day of subscription on Friday, December 30, 2022. The initial share-sale received bids for 48,04,470 shares against 56,10,000 shares on offer. The price band of the issue, which will conclude on Wednesday, January 4, 2023, has been fixed at 61 to 65 per share.

As per market observers, Sah Polymers shares are commanding a premium of 5 in the grey market today. The company’s shares are expected to list on leading stock exchanges BSE and NSE on Thursday, January 12, 2023.

Sah Polymers IPO is a fresh issue of 1,02,00,000 equity shares, with no offer for sale (OFS) component. Sat Industries, which is the promoter, holds 91.79% stake in the company.

“We assign a “Subscribe” rating to this IPO as the company has a diversified product portfolio with a customer base across geographies and industries. Also, it is available at reasonable valuations considering the future growth potential of the company,” said Marwadi Shares and Financial Services.

The company proposes to utilize the net proceeds towards setting up of a new manufacturing facility to manufacture new variant of Flexible Intermediate Bulk Containers (FIBC), repayment/ Prepayment of certain secured and unsecured borrowings in full or part, funding the working capital requirements, and general corporate purposes.

The Udaipur-based company is primarily engaged in manufacturing and selling of polypropylene (PP)/ high density polyethylene (HDPE) FIBC bags, woven sacks, HDPE/PP woven fabrics and woven polymer based products. The company has a presence in 6 states and 1 union territory for the domestic market and 6 regions internationally in 6 regions such as Africa, the Middle East, Europe, the USA, Australia and the Caribbean.

While, the company has a quality product mix, strong customer base across geographies and industries, good financials and a wide product portfolio, the issue seems pricey based on the current financials, as per Reliance Securities.

Pantomath Capital Advisors is the merchant banker to the initial share sale whereas Link Intime India Private Ltd is the registrar for the public offer.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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