From Sah Polymers to Chaman Metallics – Four IPOs that plan to raise almost ₹110 crore this week

• Four initial public offerings (IPOs), namely, Sah Polymers, Rex Sealing and Packing Industries, SVS Ventures and Chaman Metallics are open for subscription this week.
• The four IPOs are expected to collectively raise almost ₹110 crore.
• Sah Polymers, a polymer manufacturer and packaging solutions provider, will be launched on the main board of the BSE and NSE.
• Rex Sealing and Packing Industries, real estate developer SVS Ventures and steel producer Chaman Metallics will be listed on the small and medium enterprise (SME) indices.

The first week of 2023 has kicked off with four initial public offerings (IPOs) that will either launch or are already open for subscriptions, carrying forward the momentum of the year before – when 38 companies launched their issues despite volatile market conditions.

While three IPOs – that of Sah Polymers, Rex Sealing and Packing Industries, and SVS Ventures – are currently open for investor subscription, that of Chaman Metallics will open on January 4. These four IPOs are expected to collectively raise almost ₹110 crore.

Sah Polymers, a polymer manufacturer and packaging solutions provider, will list on the mainboard of the BSE and NSE. However, Rex Sealing, real estate developer SVS Ventures and steel producer Chaman Metallics will be listed on the small and medium enterprise (SME) indices.

Sah Polymers IPO to raise ₹66.3 crore
Udaipur-based Sah Polymers opened its initial public offering (IPO) on December 30 and will close on January 4, 2023. The price band of the IPO is set at ₹61-65 per share.

The company’s ₹66 crore IPO is a complete fresh issue of 10.2 million shares, with no offer for sale (OFS) component.

The shares of the company are currently commanding a grey market premium (GMP) of ₹9 per share. GMP is the premium at which IPO shares are traded in an unofficial market before they are listed on the stock exchanges.

The company is primarily engaged in manufacturing and selling of polypropylene (PP) and high density polyethylene (HDPE) bulk bags (or FIBC bags), woven sacks, and HDPE/PP woven fabrics.

Sah Polymers intends to use part of its net proceeds from the IPO to establish a new facility with an additional installed capacity of 3.96 billion tonnes per annum to manufacture different variants of FIBC products. Once set up, it will double the company’s total production capacity to 7.92 billion tonnes per annum.

The company also intends to use a part of the proceeds to repay debt, fund working capital requirements and for other general corporate purposes.

Rex Sealing IPO to be listed on SME exchange
Rex Sealing opened its IPO last week and will close on January 4. The price of the IPO is set at ₹135 per share.

The company plans to raise ₹8.09 crore through a fresh issue worth ₹4.05 crore, and an offer for sale by promoters and shareholders worth ₹4.04 crore. The IPO will be listed on the BSE SME exchange.

The company intends to use proceeds from the fresh issue to fund working capital requirements and for general corporate purposes.

The shares of the company are currently indicating a grey market discount of ₹5 per share.

The company is a manufacturer and exporter of sealing packing and insulation products including jointing sheets, fabric expansion joints, and ceramic fibre products.

Rex Sealing and Packing Industries is in the process of setting up an additional manufacturing facility at Ambernath, measuring 4,000 square metres for expansion of business and manufacture of all types of asbestos-free gasket sheets for automotive, steel and other processing units.

SVS Ventures IPO to raise ₹11.24 crore
The real estate developer also opened its IPO last week and will close on January 4. The price of the issue is set at ₹20 per share.

The company plans to raise ₹11.24 crore through a complete fresh issue of shares. The IPO will be listed on the BSE SME exchange.

The company intends to use proceeds from the fresh issue to fund working capital requirements and for general corporate purposes.

The shares of the company are currently indicating a grey market discount of ₹5 per share.

The company is in the business of construction and real estate development, focusing primarily on residential and commercial projects in and around Ahmedabad, Gujarat. The company’s business operations include development of real estate projects in the residential segment comprising apartment type complexes, villas, largely catering to the middle income and high income group.

Its projects are marketed and sold under the brand name of "SVS Ventures (formerly known as Vijay & co.)

Chaman Metallics IPO to open on January 4
Steel producer Chaman Metallics’ IPO will open on January 4 and close on January 6. The price of the issue is set at ₹38 per share.

The company plans to raise ₹24.21 crore through a complete fresh issue of shares. The IPO will be listed on the NSE SME exchange.

The company intends to use proceeds from the fresh issue to meet working capital requirements and for general corporate purposes.

The shares of the company are currently commanding a grey market premium of ₹23 per share.

Chaman Metallics is primarily engaged in the business of manufacturing and selling of direct reduced iron (i.e. sponge iron). Sponge iron is mainly used as a raw material for making steel in electric arc furnaces and induction furnaces.

It operates a manufacturing facility located in Chandrapur, Maharashtra with an installed sponge iron production capacity of 72,000 metric tonnes. The company sells its products primarily in the states of Maharashtra, Odisha and Chhattisgarh.


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