Shares of Sah Polymers made a stellar market debut on Thursday. The stock listed at ₹85 on BSE nd NSE, a premium of 30.77 percent over its issue price of ₹65.
The Initial Public Offering (IPO) of the firm was opened for subscription on December 30 and closed on Wednesday, January 4. The company fixed the price band at ₹61 to 65 per equity share for the proposed IPO.
The company is primarily engaged in the manufacturing and selling of polypropylene (PP)/high-density polyethylene (HDPE) FIBC bags, woven sacks, HDPE/PP woven fabrics and woven polymer-based products.
On the final day, the IPO was subscribed 17.46 times, driven by strong response from non-institutional investors (NII) and retail investors. The company received bids for 9,79,44,810 shares against 56,10,000 shares on offer.
The retail investors' portion was subscribed 39.78 times whereas the NII portion was subscribed 32.69 times. Meanwhile, the QIB portion was subscribed 2.40 times.
The IPO consisted of only a fresh issue of up to 1.02 crore equity shares having a face value of ₹10 each. 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.
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 crore, 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.
