Sah Polymers sets IPO price band at Rs 61-65

IPO

Packaging solutions provider Sah Polymers has set a price band for its initial public offering at Rs 61-65 a share. The issue will open for subscription from December 30- January 4.

Investors can bid for a minimum of 230 shares and in multiples thereafter.

The company has reserved 75 percent of the public issue size for qualified institutional buyers, 15 percent for high networth individuals (non-institutional investors), and the remaining 10 percent for retail investors.

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After a slew of IPOs with only offer for sale (OFS) component, Sah Polymers' offering will be a complete fresh issue of 1.02 crore equity shares. At the upper end of the price band, the issue size amounts to ~Rs 66 crore.

As per the RHP, the funds will be utilised for repayment of borrowings, general corporate purposes and setting up additional manufacturing facility for new variant of flexible intermediate bulk containers (FIBC) with capacity of 3,960 million tonnes per annum.

Sat Industries holds 91.79 percent stake in the company and rest of stake is held by Sat Invest.

The company is primarily engaged in manufacturing and selling of polypropylene (PP) and high-density polyethylene (HDPE) FIBC bags, woven sacks, and HDPE and PP woven fabrics.

It exports products to 14 countries such as Algeria, Togo, Ghana, Poland, Portugal, France, Italy, Dominican Republic, USA, Australia,UAE, Palestine, the UK and Ireland, which contributed 55 percent to revenue from operations in FY22.

The company has been bettering its financial performance over the past three years. In FY22, the company reported net profit of Rs 4.38 crore on a revenue of Rs 80.51 crore, higher from net profit of Rs 1.2 crore on revenue of Rs 55 crore in FY21. In FY20, its revenue was Rs 49 crore on net profit of Rs 30 lakh.