The initial public offer (IPO) of Sah Polymers Ltd received an overwhelming response from retail investors and non-institutional investors, resulting in 86 percent of the total offer being subscribed on Day 1. However, the qualified institutional buyers' (QIB) portion didn't receive much interest.
The company received bids for 48,04,470 shares against 56,10,000 shares on offer, according to data from the BSE.
The retail investors' portion was subscribed 2.07 times. The company received bids for 21,11,170 shares against 10,20,000 on offer for this segment.
The non-institutional investors' portion was almost fully subscribed. The company received bids for 15,24,210 shares of the 15,30,000 on offer for this segment.
The QIB's portion was subscribed 0.38 times or 38 percent. The company received bids for 11,69,090 of the 30,60,000 shares on offer for this segment. The employees' portion did not receive any subscriptions.
The public issue that opened for subscription today, will 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.
On Thursday, December 29, the Udaipur-based company completed anchor investor allocation and raised ₹29.83 crore from institutional investors as part it.
The anchor book's investors were Mavin India Fund, Saint Capital Fund, and Leading Light Fund VCC.
The company disclosed to exchanges that it has allotted 45.90 lakh equity shares to anchor investors at ₹65 per share.
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.