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  • Writer's pictureJatin Agarwal

Sah Polymers IPO


Company and IPO Overview

Promoters of Sah Polymers Limited – Sat Industries Limited, the company was originally incorporated as a public limited company under the name and style of “Peacock Continental Limited” However, the company commenced commercial operations under the name “Sah Polymers Limited”. The Managing Director (MD) of the company is Mr. Asad Daud.

The company mainly focuses its business on manufacturing and selling Polypropylene (PP)/High-Density Polyethylene (HDPE) FIBC Bags, Woven Sacks, and HDPE/PP woven fabric-based products of different weights, sizes, and colors.

It also offers customized bulk packaging solutions to business-to-business (B2B) manufacturers meeting the needs of different industries such as Agro Pesticides Industry, Basic Drug Industry, Cement Industry, Chemical Industry, Fertilizer Industry, Food Products Industry, Textile Industry Ceramic Industry, and Steel Industry.

The firm sells its products domestically as well as in the overseas market. It has established its mark in 6 states and 1 Union Territory in the domestic segment while in the foreign market, it supplies products across 6 regions including the Middle East, Europe, the USA, Australia, the Caribbean, and Africa.

Sah Polymers Limited IPO is a main-board IPO. They are going to raise around ₹66.30 crores via IPO. The Price band for this issue is priced at ₹61 to ₹65 per equity share. The retail quota is 10%, QIB is 75% and HNI is 15%. The IPO is to be listed on BSE & NSE.


Financials (rounded off)

Date

Total Revenue (₹ in cr)

​​​PAT (₹ in cr)

​31/03/2020

50

0.3

31/03/2021

55

1.3

31/03/2022

81

4.4

Objectives of the Issue

1. Setting up a new manufacturing facility to manufacture a new variant of Flexible Intermediate Bulk Containers (FIBC).

2. Repayment/ Prepayment of certain secured and unsecured borrowings in full or part availed by the Company and the Subsidiary Company to reduce company borrowings.

3. Funding the working capital needs of the Company.

4. The Balance funds will be used for other General corporate purposes.


IPO Details

IPO Date

30/12/2022-04/01/2023

Face Value

₹10 per share

IPO Price Band

₹61 to ₹65 per share

IPO Lot Size

230 Shares

Listing at

NSE, BSE

Basis of Allotment

09/01/2023

Credit of Shares in Demat

11/01/2023

Listing Date

12/01/2023

Pre-Issue Shareholding

100%

Post-Issue Shareholding

60.46%

Retail Minimum Lot Size

230 shares (₹14,950)

Major Strengths and Opportunities for Sah Polymers Limited

+ A comprehensive and diverse portfolio of products that helps the company to cater to the diverse needs of different customer segments.

+ Geographically and industrially diversified customer base.

+ Backing of a Strong management team.


Major Risks and Threats for Sah Polymers Limited

- The cash flow from operating activities has been negative in recent years.

- Any failure to obtain approvals, NOCs, licenses, and permits to set up a new manufacturing unit as well as in the ordinary course for its existing business.

- Competition from other small players in this segment.

- Inability to meet the working capital needs including defaults and delays in payment by a significant portion of its customer.


Crisp Insights

1) GMP is currently around ₹5 which is insignificant.


Disclaimer: All information is provided for educational and informational purpose only. Data is fetched from publicly available sources such as the DRHP filed by the company. The website or the author takes no guarantee for the accuracy of the data however, we have tried our best to present accurate data to out readers. Please consult a financial advisor or do your own analysis before investing/trading in the stock market.

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