Sah Polymers Ltd’s Initial Public Offering (IPO) will open for subscription on Friday, December 30, and close on Wednesday, January 4. The company has fixed the price band at ₹61 to 65 per equity share for the proposed initial public offer.
The company is primarily engaged in manufacturing and selling of polypropylene (PP)/ high density polyethylene (HDPE) FIBC bags, woven sacks, HDPE/PP woven fabrics and woven polymer based products.
Investors may bid for a minimum of 230 equity shares and in multiples thereafter.
A fresh issue of up to 1.02 crore equity shares having a face value of ₹10 each makes up the public offering. There is no offer for sale.
Out of the issue proceeds, ₹8.18 crore will be used for capital expenditures for the construction of a new production facility, ₹19.66 crore for debt repayment, ₹14.95 crore for working capital, and the remaining amount for general corporate purposes.
Repayment of debt is being made on the holding company's bridge loan, which was used for capital expenditure.
According to the Red Herring Prospectus, the company operates at 85 percent to 92 percent of the installed capacity and therefore is going for further capital expenditure. The total capital expenditure is ₹33.81 crores, of which, the company has borrowed a bridging loan of ₹15.71 crore from the holding company and deployed, while the IPO approvals came so that the installation's overall schedule is not delayed.
Pantomath Capital Advisors Private Ltd is the sole book running lead manager to the issue. The equity shares are proposed to be listed on NSE and BSE.
The company exports its products to 14 nations, including the United States, the United Kingdom, Australia, the United Arab Emirates, Africa, France, and Poland. Exports account for the majority of the company's sales.
For the 3 months ended June 30, 2022 and for fiscals 2022, the company’s revenue from exports contributed 57.61 percent and 55.14 percent, respectively, of total revenues from operations.