Almost 1100 Cr. of Subscription has been received in Sah Polymers
Sah Polymers Limited IPO
(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:
Sah Polymers Limited IPO Details:
|Open Date:||Dec 30 2022|
|Close Date:||Jan 04 2023|
|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 Date:||Jan 12 2023|
Promoters And Management:
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|
|No. of Shares||257.96||257.96||257.96|
Comparison With Peers:
|Name Of the company||Revenue (Cr)||Profit (Cr)||EPS||P/E||CMP||MCAP (Cr)|
Recommendation on Sah Polymers Limited IPO:
Lead Manager of Sah Polymers Limited IPO:
Registrar of Sah Polymers Limited IPO:
Discussion on Sah Polymers Limited IPO:
Sah Polymers IPO Subscription Day 4 at 2:30 pm
Total Subscription 13.81x
Sah Polymers final subscription –
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
TOTAL SUBSCRIPTION 1.12x
The GMP of Sah Polymers is around 9%
Sah Polymers Day 1 Subscription –
Qualified Institutions – 0.38x
NII – 1x
Retail – 2x
TOTAL SUBSCRIPTION – 0.86x
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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