Sah Polymers Limited IPO

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(i) They are an ISO 9001:2015 certified company, primarily engaged in manufacturing and selling of Polypropylene (PP)/ High Density Polyethylene (HDPE) FIBC Bags, Woven Sacks,HDPE/PP woven fabrics, based products of different weight, sizes and colours as per customers specifications.

(ii) They 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 ProductsIndustry, Textile Industry Ceramic Industry and Steel Industry. Besides, the Company is a Del Credere Associate cum Consignment Stockist (DCA/ CS) of Indian Oil Corporation Limited and also operates as Dealer Operated Polymer Warehouse (DOPW) of Indian Oil Corporation Limited for their polymer division.

(iii) They enter into arrangements as third-party manufacturers to manufacture the tape and fabric based on customers’ requirements. They have two business divisions (i) domestic sales; and (ii) exports.

(iv) They have presence in 5 states and 1 union territory for the domestic market based on sales made for the three months ended June 30, 2022 and FY 2022, respectively.

(v) Internationally, they also export the products to 14 countries such as Algeria, Togo, Ghana, Poland, Portugal, France, Italy,Dominican Republic, USA, Australia,UAE, Palestine, UK and Ireland.

(vi) For the three months ended June 30. 2022 and for Fiscals 2022, 2021 and 2020, the  revenue from exports was Rs. 15 Cr , Rs. 44 Cr, Rs. 27 Cr, and Rs. 25 Cr contributed 57.61%, 55.14%, 49.98% and 50.75% respectively of the revenue from operations

(vii) Presently, they have one manufacturing facility with installed production capacity of 3960 m.t. p.a. located at Udaipur, Rajasthan. Furthermore, in line with the strategic expansion plans, the company is intended to use part of the Net Proceeds to establish a new facility with an additional installed capacity of 3960 m.t p.a. to manufacture different variants of FIBC products.




Objects of the Sah Polymers Limited IPO:

The company proposes to utilize the Net Proceeds towards funding of the following objects: 1. Setting up of a new manufacturing facility to manufacture new variant of Flexible Intermediate Bulk Containers (FIBC). 2. Repayment/ Prepayment of certain secured and unsecured borrowings in full or part availed by the Company and the Subsidiary Company. 3. Funding the working capital requirements of the Company. 4. General corporate purposes.  

Sah Polymers Limited IPO Details:

Open Date: Dec 30 2022
Close Date: Jan 04 2023
Total Shares: 10,200,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Built Issue
Issue Size: 66.3 Cr.
Lot Size: 230 Shares
Issue Price: ₹ 61-65 Per Equity Share
Listing At: NSE,BSE
Listing Date: Jan 12 2023

Promoters And Management:

(i) Asad Daud, aged 32 years, is the Managing director of the company. He is associated with the company since April 3, 2009. He holds a Masters of Science degree in field of Accounting & Finance from The London School of Economics and Political Science. He possesses more than 12years of experience in the polymer packaging Industry. He looks after the management and operations of the company and is in involved in bringing about innovation in the operations and products of the Company. (ii) Hakim Sadiq Ali Tidiwalaaged 65 years, is the Whole Time Director of the Company. He has been associated with our Company since August 1, 1998. He was then appointed as the Managing director and since November 2, 2015 he has been re-appointed as Whole Time Director in the Company. He does not have a formal education degree. He possesses more than 23 years of experience in the polymer packaging Industry. He is responsible for the general management and administration of the Company and brings about innovation through creation of new capacities, development of products, exploring and evaluating ways of penetrating existing markets and developing new markets in India and abroad.

Financials of Sah Polymers Limited IPO:

Particulars (Fig. In Lakhs) 2022 2021 2020
Revenue from Operations 8051 5506 4910
Cost of Material Consumed 4731 3120 3153
Purchase of Stock-In -Trade 1232 675 184
Change In Inventories -331 -56 -5
Employees Benefit Expenses 315 224 216
Other Expenses 1402 1129 1171
EBITDA 702 414 191
OPM% 8.72% 7.52% 3.89%
Other Income 72 27 80
Depreciation 100 80 76
Finance Cost 123 87 133
PBT 551 274 62
Tax 112 35 22
PAT 439 239 40
NPM% 5.40% 4.32% 0.80%
No. of Shares 257.96 257.96 257.96
EPS 1.70 0.93 0.16

Comparison With Peers:

Name Of the company Revenue (Cr) Profit (Cr) EPS P/E CMP MCAP (Cr)
Rishi Tectex 101 1 1.79 14.4 24 17.9
Jumbo Bag 131 1 1.27 6.11 23 19.2
SMVD Polybag 86 1 1.05 14.9 16 16.2
EMMBI Industry 436 19 10.76 10.1 87 153
Sah Polymer 81 4 17.02 38.2 65 167

Recommendation on Sah Polymers Limited IPO:

Review and Recommendation of Sah Polymer IPO by IZ team is 4/10 1. Sah Polymer is ISO 9001:2015 certified company. Primarily involved in the production and sale of woven sacks, HDPE/PP woven textiles, and polypropylene (PP)/high density polyethylene (HDPE) FIBC bags in a variety of weights, sizes, and colours to meet the needs of clients. 2. They provide business-to-business ("B2B") manufacturers serving various industries, such as the agro-pesticides, basic drugs, cement, chemical, fertiliser, food products, textile, ceramic, and steel industries, with customised bulk packaging solutions. 3. They also work as a polymer branch of Indian Oil Corporation Limited, it also functions as Dealer Operated Polymer Warehouse (DOPW). 4. To produce their tape and fabric in accordance with the demands of their clients, they enter into agreements as third-party manufacturers. 5. According to sales for the three months ended June 30, 2022 and FY 2022, they are present in 5 states and 1 territory. Internationally they sell to Algeria, Togo, Ghana, Poland, Portugal, France, Italy, Dominican Republic, USA, Australia,UAE, Palestine, UK and Ireland. 6. For the three months ended June 30, 2022 and Fiscal 2022, 2021, and 2020, exports contributed 57.61%, 55.14%, 49.98%, and 50.75 % of their revenue from operations. 7. They have one manufacturing unit in Udaipur, Rajasthan, with 3960 m.t. P.a. and In keeping with our strategic expansion objectives, we expect to use part of our Net Proceeds to create a new plant with an extra 3960 m.t p.a. capacity to manufacture FIBC products. 8. Their primary products are FIBC (Flexible intermediate bulk container), Container Bags, Garden/Waste Bags, Woven Sacks, PP Fabric, Ground Covers, Spiral Tubing, Box Bags, and PP Woven Fabric Rolls. 9. The Revenue has Increased from 49 Crore in FY20 to 81 Crore in FY22. 10. The PAT has Increased from 29 Lakhs in FY20 to 4.37 Crore in FY22. 11. The EBITDA has increased from 2 Crore in FY20 to 7 Crore in FY22. 12. As per FY22, EPS is 1.69, ROE is 16.41 & ROCE is 22.78 . 13. As per FY22, Market Capitalization is 167 Crore & P/E is 38.46 . The IPO looks highly overpriced. However, as the Issue size is small, it can be manipulated easily.

Lead Manager of Sah Polymers Limited IPO:

  1. Pantomath Capital Advisors Private Limited

Registrar of Sah Polymers Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Sah Polymers Limited E-260-261 Mewar Industrial Area Madri Udaipur Rajasthan 313003 Phone: +91 294 2493889 Email: Website  

Discussion on Sah Polymers Limited IPO:


    Sah Polymers IPO Subscription Day 4 at 2:30 pm

    QIB 2.21x
    NII 24.11x
    Retail 33.15x

    Total Subscription 13.81x

    Sah Polymers final subscription –

    NII 0.27x
    QIB 0.52X
    Retail 12.97x

    Total Subscription 3.80x

    Sah Polymers Day 2 subscription till 11 pm

    Qualified Institutions – 0.38x
    Non Institutional Buyers – 1.12x
    Retail Investors – 3.35x


    Sah Polymers Day 1 Subscription –

    Qualified Institutions – 0.38x
    NII – 1x
    Retail – 2x


    1. Very small IPO difficult to get the shares.

    2. The issue seems to be on higher side as compared to peers.

    3. Pantomath is the LM, known to manage SMEs well.

    4. Decent growth in the business in the last 3 years only. In 2014, the revenue was 42 Crores and in 2020 the revenue was 49 Crores. So, hardly any growth.

    5. The industry in which company operate is highly competitive. Plus business requires high working capital.

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