Sah Polymers IPO to open for subscription on December 30,2022

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Sah Polymers
Photo: Sah Polymers

The initial public offering(IPO) of Udaipur-based company Sah Polymers will open for subscription on 30th December 2022 and conclude on January 4, 2023. The price band is fixed at ₹61-₹65 to raise Rs 66.30 crores.

Sah Polymers manufactures and exports PP woven bags and HDPE box bags, BOPP laminated bags, and flexible intermediate bulk containers and is a leading PP woven bag manufacturer in India since being incorporated in the year 1992.

75% of shares of the IPO is reserved for qualified institutional buyers,15% for non-institutional investors, and the remaining 10% for retail investors.it will be a new issue of 1.02 crore shares with no offer for sale(OFS) component. Investors can make a bid for a minimum of 230 equity shares and its multiple thereof.

The company will double its total production capacity to 7.92 billion tonnes per annum by establishing a new facility with an additional installed capacity of 3.96 billion tonnes per annum to manufacture different variants of FIBC products. They already have one manufacturing facility located at Udaipur, Rajasthan, with an installed production capacity of 3.96 tonnes per annum.

Sah Polymers’ net profit has more than tripled to ₹4.37 crore in the financial year 2022, compared to the previous financial year.

Particulars Revenue from operations Net profit EBITDA margin
FY22 ₹80.51 crore ₹4.37 crore 9.61%
FY21 ₹55.06 crore ₹1.27 crore 5.99%
FY20 ₹49.10 crore ₹0.29 crore 5.32%

Source: Red herring prospectus

Peer companies Revenue from operations Net profit % change in stock price in 2022
Rishi Techtex ₹101 crore ₹1.31 crore -3.44%
Jumbo Bag ₹131 crore ₹1.06 crore 45.48%
SMVD Poly Pack ₹86 crore ₹1.04 crore 41%
EMMBI Industries ₹436 crore ₹19.03 crore -15%
Commercial Syn Bags ₹322 crore ₹18.18 crore -5.49%
Sah Polymers ₹81 crore ₹4.37 crore NA

Source: Red herring prospectus

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