Sah Polymers surprised the Street with a strong opening as the stock made a debut with 30.7 percent premium over issue price on January 12. This was the last listing among IPOs launched last month.
The bulk packaging solutions provider started off the first day trade at Rs 85, against an issue price of Rs 65 per share, despite volatility in the equity markets. Healthy subscription numbers, and good financial track record are some of reasons for the premium listing.
The company launched its maiden public issue on December 30, 2022, and it was closed with 17.46 times subscription on January 4, 2023.
The offer comprised only a fresh issue of 1.02 crore shares. The issue fetched the company Rs 66.30 crore at the higher end of the price band of Rs 61-65 per share.
The issue proceeds will be used for the addition of a manufacturing facility to manufacture a new variant of flexible intermediate bulk containers (FIBC) with a production capacity of 3,960 million tonnes per annum.
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It has one manufacturing facility with an installed production capacity of 3,960 million tonnes per annum at Udaipur in Rajasthan.
The debt repayment and working capital requirements are other objectives of the issue, besides general corporate purposes.
Incorporated in 1992, Sah Polymers manufactures polypropylene (PP)/high-density polyethylene (HDPE) FIBC bags, woven sacks, HDPE/PP woven fabrics and woven polymer,
The company offers customised bulk packaging solutions to companies catering to several industries including agro pesticides, cement, chemical, fertiliser, food products, ceramic, and steel.
Sah Polymers has two business divisions - domestic sales and exports contributing 45 percent and 55 percent, respectively, to revenue for the year ended March 2022.
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