Mumbai, January 03, 2023: 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 received bids of 2,99,95,450 shares against the offered 56,10,000 equity shares for subscription, at a price band of ₹61-65, according to the data available on the stock exchanges.
Overall the issue was subscribed 5.35 times on the third day of bidding, the issue was subscribed 2.73 times and 0.86 times on the second and opening day respectively.
Retail Portion was subscribed the most with 16.53 times followed by Non-Institutional segment that saw a response of 6.49 times. The reserved portion for qualified institutional buyer portion saw a subscription of 1.05 times. The issue kicked off for subscription on Friday, December 30, and will close on Wednesday, January 04, 2023.
A day prior to the Issue opening, Sah Polymers Ltd raised Rs 29.83 crore from anchor investors including Mavin India Fund, Saint Capital Fund and Leading Light Fund VCC.
Broking house Marwadi Financial Services have given a “Subscribe” rating to the issue.
A note by Reliance Securities states “the polymer market size is expected to reach $790bn by 2027, growing at a CAGR of 5.5% during the period of 2022-27. Additional states “The global market for FIBC is estimated to from $6701.5 mn in 2022 to $9109.7mn by 2028 and is likely to aid the company’s growth. While the company has a quality product mix, strong customer base across geographies, good financials and a wide product portfolio, the issue seems pricey on on the current financials”.
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 BSE and NSE.
Sah Polymers is led by Asad Daud, and Hakim Sadiq Ali Tidiwala, 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. It is also a Del Credere Associate cum Consignment Stockist (DCA/ CS) of Indian Oil Corporation Limited, as well as a Dealer Operated Polymer Warehouse (DOPW) of Indian Oil Corporation’s polymer division.
The Udaipur-based company has two business division namely Domestic sales and exports. Based on sales, it has presence in six states and one union territory for its local market. Internationally, it supplies its products in six regions: Africa, the Middle East, Europe, The United States, Australia, and Caribbean. For the nine months ended December 31, 2021 and fiscal 2021, exports contributed 37.40 percent and 46.80 percent, respectively.
The table below shows subscription data for all the categories of investors:
SAH POLYMERS LIMITED
Last updated on
03 Jan 2023 | 05:00:00 PM
Sr.No. Category No.of shares offered / reserved No. of shares bid for No. of times of total meant for the category
1 Qualified Institutional Buyers (QIBs) 30,60,000 32,04,360 1.05
1(a) Foreign Institutional Investors (FIIs) - 31,59,280 -
1(b) Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies) - - -
1(c) Mutual Funds - - -
1(D) Others - 45,080 -
2 Non Institutional Investors(NIIS) 15,30,000 99,33,010 6.49
2.1 Non Institutional Investors(Bid amount of more than Ten Lakh Rupees) 10,20,000 65,23,950 6.40
2.1(a) Corporates - 2,63,810 -
2.1(b) Individuals (Other than RIIs) - 56,43,510 -
2.1(c) Others - 6,16,630 -
2.2 Non Institutional Investors(Bid amount of more than Two Lakh Rupees and upto 10 lakh rupees) 5,10,000 34,09,060 6.68
2.2(a) Corporates - 3,220 -
2.2(b) Individuals (Other than RIIs) - 28,57,750 -
2.2(c) Others - 5,48,090 -
3 Retail Individual Investors (RIIs) 10,20,000 1,68,58,080 16.53
3(a) Cut Off - 1,49,42,180 -
3(b) Price Bids - 19,15,900 -
4 Employee Reserved - - -
4(a) Employee (Cut off) - - -
4(b) Employee (Price) - - -
5 Reservation PortionShareholder - - -
5(a) RPS (Cut off) - - -
5(b) RPS (Price) - - -
Total 56,10,000 2,99,95,450 5.35