Business News/ Markets / Ipo/  Sah Polymers IPO: Retail category fully subscribed on day 1. GMP, key details to know

The initial public offering (IPO) of polymer manufacturer Sah Polymers has opened for subscription on Friday, December 30, 2022 and conclude on January 4, 2023. The company has fixed a price band of 61 to Rs65 per share for its issue. As of 3:20 pm, the offer has been subscribed 0.28 times with retail category fully booked 1.28x and NIIs 0.19x, BSE data showed.  

As per market observers, Sah Polymers shares are commanding a premium of 6 in the grey market today. The company's shares are expected to list on leading stock exchanges BSE and NSE on Thursday, January 12, 2023.

Sah Polymers IPO is a fresh issue of 1,02,00,000 equity shares, with no offer for sale (OFS) component. Sat Industries, which is the promoter, holds 91.79% stake in the company. 

75% of the issue is reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs) and the remaining 10% for retail investors.

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

The company has a presence in 6 states and 1 union territory for the domestic market and 6 regions internationally in 6 regions such as Africa, the Middle East, Europe, the USA, Australia and the Caribbean. 

The company proposes to utilize the net proceeds towards funding of the following objects setting up of a new manufacturing facility to manufacture new variant of Flexible Intermediate Bulk Containers (FIBC), repayment/ Prepayment of certain secured and unsecured borrowings in full or part availed by the company and the subsidiary company, funding the working capital requirements of the company, and general corporate purposes.

“Considering the FY22 adjusted EPS of 1.70 on a post-issue basis, the company is going to list at a P/E of 38.32x with a market cap of 1,677 mn. We assign a “Subscribe" rating to this IPO as the company has a diversified product portfolio with a customer base across geographies and industries. Also, it is available at reasonable valuations considering the future growth potential of the company," said Marwadi Shares and Financial Services.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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Updated: 30 Dec 2022, 03:25 PM IST
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