The December IPO season is here. In less than 20 days, the month saw 5 public issues going live. In the same month, India’s largest wine producer and seller - Sula Vineyards debuted in the market, along with other IPOs such as Abans Holdings, Landmark Cars and KFin Technologies. However, the IPOs turned out to be an empty shell, affected heavily due to the increasing global tensions and worries on the COVID situation. Moreover, the IPO season is still blooming, with one more IPO coming live on 30th December i.e - Sah Polymers Ltd. In this article, let’s study the details of this IPO and know whether it is a good opportunity to invest in or not.
About the Company -
Incorporated in the year 1992, Sah Polymers is an ISO 9001:2015 certified company, primarily engaged in manufacturing and selling of Polypropylene (PP)/ High Density Polyethylene (HDPE) FIBC Bags, Woven Sacks, HDPE/PP woven fabrics, woven polymer-based products of different weight, sizes and colors as per customer's specifications. The company offers customized bulk packaging solutions to business-to-business (“B2B”) manufacturers catering to different industries such as Agro Pesticides Industry, Basic Drug Industry, Cement Industry, Chemical Industry, Fertilizer Industry, Food ProductsIndustry, Textile IndustryCeramic Industry and Steel Industry.
The company operates via two business divisions (i) domestic sales; and (ii) exports. Sah Polymers has presence in 6 states and 1 union territory for the domestic market (i.e in India), while internationally the company supplies products in 6 regions such as Africa, Middle East, Europe, USA, Australia, Caribbean
The financials of the company for the last three financial years are given as below:
all numbers stated are in crore, except share data.
*not annualized
Sah Polymers Ltd details -
Let’s now move onto the main part of this article. Here, we’re going to be looking at some of the most important details of this upcoming IPO viz - Sah Polymers Ltd date and its share price.
Sah Polymers Ltd issue date -
According to the Red Herring Prospectus filed by the company, the public issue of the equity shares is going live from December 30 and will be available for subscription until January 02, 2023.
Sah Polymers Ltd issue size -
The total issue size of the latest Sah Polymers Ltd is declared to be ₹66.30crores. The company is offering fresh issue of 10,200,000 shares aggregating to the issue size.
75% of the offer is for QIBs (Qualified Institutional Buyers), 10% for retail investors, and the balance 15% for NIBs (Non-institutional Investors).
Sah Polymers Ltd share price
The price band of the company’s upcoming IPO is declared to range between ₹61 to ₹65 per equity share
Sah Polymers Ltd listing
Since the IPO of Sah Polymers Ltd is from the mainboard, it would be listed on both - the National Stock Exchange (NSE) as well as the Bombay Stock Exchange (BSE)
Sah Polymers Ltd objectives
The net proceeds of the Issue, i.e. gross proceeds of the Issue are proposed to be utilized in the following manner:
- 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 its subsidiaries
- Funding the working capital requirements of the Company;
- General corporate purposes.
Sah Polymers Ltd Strengths
- Established customer base across geographies and industries
- Diverse multi –product portfolio
- Experienced management and team
Sah Polymers Ltd India Ltd risks
- Inadequate or interrupted supply and price fluctuation of the company’s raw materials and packaging materials
- Defaults or delay in payments by the customers
- Italica Furniture Private limited, a Group Company and Fibcorp Polyweave Private Limited, Subsidiary of Sah Polymers, is carrying on business activities similar to the company business. This may be a potential source of conflict of interest for the company, which may have an adverse effect on the business.
- Changes in laws, rules & regulations and legal uncertainties
- Pricing pressures from the competitive business environment
Conclusion
If you wish to become a part of this exciting IPO opportunity, you will need to have an online demat and trading account, which will help you get shares of your favorite companies. To get an online DEMAT accountfor Free*, all you have to do is sign-up with Motilal Oswal and get started.
If you are an existing customer with Motilal Oswal, you can now invest in the IPOs in just one click through UPI payment!
It’s all easy. It’s all good.
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