Sah Polymers makes its market debut with a 30% premium
Sah Polymers provides customised bulk packaging solutions to businesses in a variety of industries such as agro pesticides, cement, chemical, fertiliser, food items, ceramics, and steel.
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On January 12, Sah Polymers stunned the market with a good start, debuting with a 30.7 percent premium over the issue price. This was the final listing of the month's IPOs.
Despite volatility in the equities markets, the bulk packaging solutions business opened the first day of trading at Rs 85, compared to an issue price of Rs 65 per share. Some of the criteria for the premium listing include healthy subscription numbers and a solid financial track record.
On December 30, 2022, the firm issued its first public offering, which was closed with 17.46 times subscription on January 4, 2023.
The offer solely included a new issue of 1.02 crore shares. The issue raised Rs 66.30 crore for the company at the upper end of the price band of Rs 61-65 per share.
The proceeds of the offering will be used to build a new manufacturing facility to produce a new variation of flexible intermediate bulk containers (FIBC) with a production capacity of 3,960 million tonnes per year.
It has one manufacturing unit in Udaipur, Rajasthan, with an installed production capacity of 3,960 million tonnes per year.
Aside from broad business reasons, the issue's additional goals include debt repayment and working capital requirements.
Sah Polymers, founded in 1992, produces polypropylene (PP)/high-density polyethylene (HDPE) FIBC bags, woven sacks, HDPE/PP woven fabrics, and woven polymer.
The company provides tailored bulk packaging solutions to businesses in a variety of industries, including agro pesticides, cement, chemical, fertiliser, food goods, ceramics, and steel.
Domestic sales and exports contributed 45 percent and 55 percent, respectively, to revenue for the fiscal year ended March 2022 at Sah Polymers.
