Sah Polymers is set to go public with an initial public offering (IPO) of 10,200,000 equity shares, with a face value of INR 10 (Indian Rupees) each, for a total of ₹66.30 Crores. The IPO is set to open on December 30, 2022, and close on January 4, 2023, with a price range of ₹61 to ₹65 per share. Interested investors will be able to place orders for a minimum of 230 shares.
The shares will be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) upon completion of the IPO, and Link Intime India Private Ltd has been appointed as the registrar. This is a significant milestone for Sah Polymers, as the company looks to expand its operations and raise additional capital through the sale of its shares to the public.
About Sah Polymers
Sah Polymers is a company that produces and sells various types of packaging materials, such as bags and fabrics, made from polypropylene (PP) and high density polyethylene (HDPE). These products are used by businesses in various industries, including agriculture, chemical manufacturing, and food processing.
Sah Polymers serves customers both in India and internationally, exporting its products to 14 countries around the world. In addition to its core business of manufacturing and selling packaging materials, Sah Polymers also has a partnership with Indian Oil Corporation, acting as a Del Credere Associate and Consignment Stockist, as well as a Dealer Operated Polymer Warehouse. This means that Sah Polymers helps to distribute and store Indian Oil Corporation’s polymer products. Overall, Sah Polymers is a respected and successful company in the packaging industry, known for its high-quality products and reliable service.
Sah Polymers IPO Details
- The IPO is set to open on December 30, 2022, and close on January 4, 2023.
- The face value of each share is ₹ 10.
- The price per share will be ₹ 61 to INR 65.
- The minimum order size is 230 shares.
- A total of 10,200,000 shares are being offered, for a total of INR 66.30 Crores.
- The shares will be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
- The IPO is a book built issue, meaning that the final price will be determined through a bidding process.
- At least 75% of the shares being offered will be reserved for qualified institutional buyers (QIBs), while not more than 15% will be reserved for non-institutional investors (NIIs) and not more than 10% will be reserved for retail investors.
- The company promoter is Sat Industries Limited.
Objectives of this IPO
The Sah Polymers IPO is being conducted in order to raise funds for specific purposes, as outlined in the “Objects of the Issue” section of the prospectus. The company plans to use the net proceeds from the sale of shares to achieve the following objectives:
- Setting up of a new manufacturing facility: Sah Polymers plans to use some of the funds raised through the IPO to establish a new facility for the production of a new type of Flexible Intermediate Bulk Container (FIBC). These containers are used for bulk packaging and transportation of various types of materials, and the new facility will allow the company to expand its product offerings and increase its capacity.
- Repayment/prepayment of borrowings: The company also plans to use some of the funds raised through the IPO to repay or prepay certain secured and unsecured borrowings that it has obtained. This may include loans, overdrafts, and other types of debt.
- Funding working capital requirements: Sah Polymers will also use some of the funds raised through the IPO to meet its ongoing working capital needs. Working capital is the money that a company needs to cover its short-term expenses, such as payroll, rent, and utilities. Ensuring that the company has sufficient working capital is essential for maintaining its operations and growth.
- General corporate purposes: Finally, the company plans to use some of the funds raised through the IPO for general corporate purposes. This could include a variety of activities, such as investing in new equipment or technology, expanding the company’s sales and marketing efforts, or making acquisitions.
Overall, the funds raised through the Sah Polymers IPO will be used to support the company’s growth and development, as well as to strengthen its financial position.
Fundamentals of Sah Polymers
In the period ending March 31, 2020, Sah Polymers had total assets of INR 35.93 Crores, total revenue of INR 49.91 Crores, a profit after tax of INR 0.3 Crores, a net worth of INR 18.81 Crores, and total borrowing of INR 10.37 Crores.
In the following year, ending March 31, 2021, the company saw increases in its total assets, total revenue, and net worth, and a slight increase in total borrowing.
By the end of March 2022, Sah Polymers had total assets of INR 68.67 Crores, total revenue of INR 81.23 Crores, a profit after tax of INR 4.38 Crores, a net worth of INR 26.65 Crores, and total borrowing of INR 30.54 Crores.
In the period ending June 30, 2022, the company saw a decrease in total revenue, but an increase in total assets, net worth, and total borrowing. Overall, these financial metrics show the financial health and performance of Sah Polymers over time.