Sah Polymers IPO now open – Here are 10 things you need to know before you subscribe

Sah Polymers, a polymer manufacturer and packaging solutions provider based in Udaipur, opened its initial public offering (IPO) on December 30, which will be live till January 4, 2023. The price band of the IPO is set at ₹61-65 per share.

The company’s ₹66.3-crore IPO is a complete fresh issue of 10.2 million shares, with no offer for sale (OFS) component.

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 offers customised bulk packaging solutions to business-to-business manufacturers catering to different industries such as agro pesticides, basic drugs, cement, chemicals, fertilisers, food products, textiles, ceramics and steel.

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.

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

In terms of risks, one of the promoters of the company, Aeroflex Industries, is in the list of wilful defaulters, according to credit bureau CIBIL.

Sah Polymers’ net profit has more than tripled to ₹4.37 crore in FY22, compared to the previous financial year.

The shares of the company are currently commanding a grey market premium (GMP) of ₹5 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’s shares are scheduled to be allotted on January 9 and listed on the BSE and NSE on January 12.