Monday, December 26, 2022

Sah Polymers Limited’s Initial Public Offering to open on Friday, 30th December, 2022, sets price band at ₹61 to ₹65 per Equity Share


Price Band of  ₹ 61 – ₹ 65 per equity share bearing face value of  ₹ 10 each (“Equity Shares”)

Anchor Investor BIDDING DATE- Thursday 29 ,December 2022*

Bid/Offer Opening Date – Friday, 30th December, 2022 and Bid/Offer Closing Date – Wednesday, 4th January, 2023.

Minimum Bid Lot is 230 Equity Shares and in multiples of 230 Equity Shares thereafter.

The Floor Price is 6.1 times the face value of the Equity Share and the Cap Price is 6.5 times the face value of the Equity Share.

*Company in consultation with the BRLM may consider participation by Anchor Investors in accordance with the SEBI ICDR Regulations. The Anchor Investor Bidding Date shall be one Working Day prior to the Bid/Issuer Opening Date. 


Risks to Investors


The BRLM associated with the Offer have handled 08 public issues in the past three years, out of which 01 issue was closed below the offer price on the listing date respectively.

Name of BRLM Total Issues Issues closed below IPO Price on listing date

Pantomath Capital Advisors Private Limited 8 1



Mumbai, December 26, 2022: Sah Polymers Limited, primarily engaged in manufacturing and selling of Polypropylene (PP)/ High Density Polyethylene (HDPE) Flexible Intermediate Bulk Containers (FIBC) Bags, Woven Sacks, HDPE/PP woven fabrics, woven polymer based products has fixed the price band at ₹61 to ₹65 per Equity Share for its maiden public offer. The initial public offering (“IPO” or “Offer”) of the Company will open on Friday, 30th December, 2022, for subscription and closes on Wednesday, 4th January, 2023. Investors can bid for a minimum of 230 Equity Shares and in multiples of 230 Equity Shares thereafter.


The public issue with a face value of Rs 10 per equity share consists of a fresh issue of equity shares of upto 102,00,000 equity shares, with no offer for sale component.


Sah Polymers is led by Asad Daud and professionally backed by Hakim Sadiq Ali Tidiwala and Murtaza Ali Moti with a combined expertise of approximately 20 years in the FIBC packaging sector. The Company provides tailored bulk packaging solutions to business-to-business ("B2B") producers in a variety of industries, including agro pesticides, basic drugs, cement, chemicals, fertilisers, food products, textiles, ceramics, and steel. 

The Company exports its products to 14 countries including USA, UK, Australia, UAE, Africa, France and Poland. Majority of the sales of the Company comes from exports. For the 3 months ended June 30, 2022 and for Fiscals 2022, the Company’s revenue from exports contributed 57.61% and 55.14%, respectively, of total revenues from operations. 

Return on net-worth is 16.42% and PAT margin for the year ended 2022 stood at 5.39%. The Company’s sales have grown from Rs. 49.90 crores in FY  2020 to Rs. 81.23 crores in FY 22. The sales for the quarter ended June 2022 stood at Rs.27.59 crores. Thus the sales CAGR for last three completed years is 27.6%. Similarly, the post-tax profits, i.e., PAT of the Company has increased with CAGR of 284% over last three years. 

The Company operates at 85% to 92% of the installed capacity and therefore going for further capex. Total capex is Rs. 33.81 crores, out of which the Company has taken bridge loan of Rs. 15.71 crores from the holding company and deployed while the IPO approvals came so that the overall timeframe of the installation is not delayed. The new Project is estimated to commence commercial operations within this year 2022-23 itself. Out of the current manufacturing facility (located at Mewar Industrial Area, Madri, Udaipur, Rajasthan) the Company manufactures a diverse range of HDPE/PP Woven Sacks and FIBC products with filling capacity of upto 500 KGs per bag/sack. The Company intends to manufacture new variant of FIBC products with filling capacities of upto 2,500 KGs out of the new Unit. The installed capacity of the new Unit is of 3,960 MT per annum, which is equivalent to current capacity therefore the company’s capacity will double upon commissioning of new plant.

Kanpur Plastipack Ltd., Rishi Techtex Ltd., Gopala Polyplast Ltd., Jumbo Bag Ltd., SMVD Polypack Ltd., EMMBI Industries Ltd., and Commercial Syn. Bags Ltd. are competitors; however, the peers are not directly comparable due to the type, range of products/services, turnover, and size of the firm. As disclosed in the offer is given below:

(Rs.in lakhs) (As on March 31, 2022)


Key Performance Indicators Sah Polymers Limited# Peer-Group

Rishi Techtex Limited Jumbo Bag Limited SMVD Poly Pack Limited EMMBI Industries Limited Commercial Synbag Limited

Revenue from Operations 8,051.14 10,085.75 13,056.50 8,624.13 43,562.20 32,158.0

EBITDA(3) 773.40 634.89 983.92 306.55 4920.8 3487.65

EBITDA Margin(4) 9.61% 6.29 7.50 8.11 11.29 10.85%

Profit After Tax for the Year / Period 437.54 131.85 106.09 104.63 1,903.30 1,818.28

PAT Margin(5) 5.43% 1.30% 0.81% 1.21 4.37 5.65

ROE(6) 16.42% 17.83% 3.35% 4.65 12.41 0.20%

ROCE(7) 0.14 10.55 14 9.07 8.19 0.15

Debt / Equity(8) 1.15 0.98 2.61 1.40 0.94 0.69

Market capitalisation rs. In lakhs. - 2066 1851 1520 16372 43701


The total equity issued before IPO is 15.59 crores and along with reserves the net-worth is Rs 27.74 crores as at the end of the 30th June 2022. Post IPO, the Company’s net-worth shall stand at Rs 92.95 crores. The Book value post IPO would be 36 plus the profit surplus for the period.

The Issue is being made in terms of Rule 19(2)(b) of the SCRR through the Book Building Process in accordance with Regulation 6(2) of the SEBI ICDR Regulations wherein not less than 75% of the Issue shall be Allotted to QIBs on a proportionate basis, provided that the Company in consultation with the BRLM, may allocate up to 60% of the QIB Category to Anchor Investors, on a discretionary basis in accordance with the SEBI ICDR Regulations, of which one-third shall be reserved for domestic Mutual Funds, subject to valid Bids being received from them at or above the price at which allocation is made to Anchor Investors. In case of under-subscription or non-allocation in the Anchor Investor Portion, the remaining Equity Shares will be added back to the QIB Category (other than Anchor Investor Portion). 5% of the QIB Category shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Category shall be available for allocation on a proportionate basis to all QIBs (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Issue Price. If at least 75% of the Issue cannot be Allotted to QIBs, the Bid Amounts received by the Company shall be refunded. Further, not more than 15% of the Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not more than 10% of the Issue shall be available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Issue Price. Further, the allocation to each Non-Institutional Investor shall not be less than Rs. 200,000, subject to availability of Equity Shares in the Non-Institutional Portion, and the remaining Equity Shares, if any, shall be allocated on a proportionate basis, subject to valid Bids being received at or above the Issue Price, in accordance with the SEBI ICDR Regulations. Further, (a) one third of the portion available to Non-Institutional Investors shall be reserved for applicants with application size of more than Rs. 200,000 and up to Rs. 1,000,000; and (b) two third of the portion available to Non-Institutional Investors shall be reserved for applicants with application size of more than Rs. 1,000,000 , provided that the unsubscribed portion in either of the sub-categories specified in clauses (a) or (b), may be allocated to applicants in the other sub-category of Non-Institutional Investors. Under-subscription, if any, in any category, except the QIB Category, would be allowed to be met with spill-over from any other category or categories, as applicable, at the discretion of the Company in consultation with the BRLM and the Designated Stock Exchange, subject to applicable laws.

The Issue comprises of only fresh issue of up to 1,02,00,000 Equity Shares for cash at upper price band of Rs. 65/- per Equity Share (including a premium of Rs. 55/- per Equity Share, aggregating up to Rs. 66 crores. The Issue shall constitute 39% of the post-Issue paid-up Equity share capital of the Company. Notably, the issue involves all fresh issue without any offer for sale component. Out of the issue proceeds, Rs. 8.18 crores shall be utilized for capex for setting up of new manufacturing unit; Rs. 19.66 shall be towards repayment of debt, Rs. 14.95 crores for working capital and balance for general corporate purposes.  The debt repayment is towards the bridge loan from the holding company which was deployed in the capex.

The Group has made several acquisitions from time to time. The Company carefully evaluate and pursue accretive acquisitions. Given the breadth of its product offering, and the scale of manufacturing and customer network, the Company is positioned to grow inorganically within its industry. The Company has gained competitive advantage due to its recent acquisition of Fibcorp Polyweave Private Limited on January 5, 2022, which will leverage to generate incremental synergies. The Company intends to apply a selective and disciplined acquisition strategy that focuses on enhancing scale, product diversity and geographic reach, while bolstering financial performance through synergies and additional cash generation.

Pantomath Capital Advisors Private Limited is the sole book running lead manager to the issue and Link Intime India Private Limited is the registrar to the offer. The equity shares are proposed to be listed on the Main Board of NSE and BSE.


Disclaimers: SAH POLYMERS LIMITED is proposing, subject to receipt of requisite approvals, market conditions and other considerations, to make an initial public offer of its Equity Shares and has filed a draft red herring prospectus dated April 21, 2022 (the”DRHP”) and has filed the red herring prospectus dated December 20, 2022 with the RoC (the”RHP). The DRHP and RHP shall be made available on the website of the SEBI at www.sebi.gov.in as well as on the website of the BRLM i.e., Pantomath Capital Advisors Private Limited at www.pantomathgroup.com, the website of the National Stock Exchange of India Limited at www.nseindia.com and the website of the BSE Limited at www.bseindia.com. Any potential investor should note that investment in equity shares involves a high degree of risk and for details relating to such risks, see “Risk Factors” beginning on page 26 of the RHP. Potential investors should not rely on the DRHP for any investment decision. This Announcement has been prepared for publication in India and may not be released in the United States. This announcement does not constitute an offer of Equity Shares for sale in any jurisdiction, including the United States, and the Equity Shares offered in the Offer may not be offered or sold in the United States in absence of registration under the U.S. Securities Act of 1933 or an exemption from registration. Any public offering of the Equity Shares to be made in the United States will be made by means of a prospectus that may be obtained from the Company and that will contain detailed information about the Company and management, as well as financial statements. However, the Equity Shares offered in the Offer are not being offered or sold in the United States.

The Equity Shares offered in the Offer have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”) or any other applicable law of the United States and, unless so registered, may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. Accordingly, the Equity Shares are only being offered and sold (i) within the United States only to persons reasonably believed to be °qualified institutional buyers” (as defined in Rule 144A under the Securities Act, “Rule 144A”) in transactions exempt from, or not subject to, the registration requirements of the Securities Act, and (ii) outside the United States in offshore transactions in compliance with Regulation S under the Securities Act and pursuant to the applicable laws of the jurisdictions where those offers and sales are made. There will be no public offering of the Equity Shares in the United States.

DISCLAIMER CLAUSE OF SEBI:  SEBI only gives its observations on the offer documents and this does not constitute approval of either the Offer or the specified securities stated in the Offer Document. The investors are advised to refer to page 211 of the RHP for the full text of the disclaimer clause of SEBI. 


DISCLAIMER CLAUSE OF BSE: It is to be distinctly understood that the permission given by BSE Limited should not in any way be deemed or construed that the RHP has been cleared or approved by BSE Limited nor does it certify the correctness or completeness of any of the contents of the RHP. The investors are advised to refer to the page 214 of the RHP for the full text of the disclaimer clause of the BSE Limited. 


DISCLAIMER CLAUSE OF NSE (The Designated Stock Exchange): It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Offer Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Offer Document. The investors are advised to refer to page 214 of the RHP for the full text of the disclaimer clause of NSE.


For further details in relation to the Company, BRLMs, Company Secretary and Compliance Officer of the Company, availability of application forms and RHP, please refer to statutory advertisement dated 23/12/2022

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