Sah Polymers has announced an IPO pricing range of Rs 61-65

Sah Polymers, a developer of packaging solutions, has established a price range of Rs 61-65 per share for its initial public offering. Subscriptions for the issue will be available from December 30 to January 4.

Investors can place bids for as few as 230 shares and in multiples of that number.

The company has set aside 75% of the public issue size for qualified institutional buyers, 15% for high net worth individuals (non-institutional investors), and 10% for regular investors.

Following a string of IPOs with only an offer for sale (OFS) component, Sah Polymers' offering would be a full fresh issue of 1.02 crore equity shares. The issue size is Rs 66 crore at the upper end of the pricing band.

According to the RHP, the proceeds will be used for debt repayment, general corporate objectives, and the establishment of a new manufacturing facility for a new variety of flexible intermediate bulk containers (FIBC) with a capacity of 3,960 million tonnes per year.

Sat Industries owns 91.79 percent of the corporation, with Sat Invest owning the remainder.

The primary business of the company is the production and sale of polypropylene (PP) and high-density polyethylene (HDPE) FIBC bags, woven sacks, and HDPE and PP woven textiles.

It exports products to 14 countries, including Algeria, Togo, Ghana, Poland, Portugal, France, Italy, the Dominican Republic, the United States, Australia, the United Arab Emirates, Palestine, the United Kingdom, and Ireland, which accounted for 55% of income from operations in FY22.

Over the last three years, the company's financial performance has improved. In FY22, the company reported a net profit of Rs 4.38 crore on revenue of Rs 80.51 crore, an increase from the previous year's net profit of Rs 1.2 crore on revenue of Rs 55 crore. Its sales in FY20 was Rs 49 crore, with a net profit of Rs 30 lakh.