Sah Polymers IPO subscribed over 2x; 2 more days left to bid. Check latest GMP

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The Initial Public Offer (IPO) of Sah Polymers was subscribed 2.37 times on the second day of subscription on Monday. The IPO received bids for 1,33,06,420 shares against 56,10,000 shares on offer, as per the exchange data. The offer opened for public subscription on Friday, December 30, 2022 and will conclude on Wednesday, January 3, 2023.

Sah Polymers IPO consists of 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. The price range for the initial share sale is at 61-65 a share.

According to market observers, Sah Polymers shares are commanding a premium of 6 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.

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.

Sah Polymers is Udaipur-based company which 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.

“The Polymers market size is expected to reach $790bn by 2027, growing at a CAGR of 5.5% during the period of 2022-27. The company manufactures and sells Polypropylene which is a very lightweight polymer and used as a substitute for various other polymers. Moreover, the global market for FIBC is estimated at $6701.5mn in 2022 and is projected to reach $9109.7mn by 2028, growing at a CAGR of 5.3% which is likely to aid in the company’s growth. 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,” said Reliance Securities.

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

 


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