Udaipur-based Sah Polymers has set the price band for its initial public offering (IPO) at Rs 61-65 per share. The IPO will open for subscription on December 30 and close on Jan 4. Anchor investors can submit their bids on December 29.
Bids can be made for a minimum of 230 shares and in multiples of 230 shares thereafter.
Of the total public issue, 75% is reserved for qualified institutional buyers, 15% for non-institutional buyers, and 10% for retail investors.
The public issue with a face value of Rs 10 per equity share consists of a fresh issue of equity shares of upto 102,00,000 equity shares, with no offer for sale component.
Sah Polymers is led by Asad Daud and professionally backed by Hakim Sadiq Ali Tidiwala and Murtaza Ali Moti with a combined expertise of approximately 20 years in the FIBC packaging sector. The Company provides tailored bulk packaging solutions to business-to-business ("B2B") producers in a variety of industries, including agro pesticides, basic drugs, cement, chemicals, fertilisers, food products, textiles, ceramics, and steel.
The Company exports its products to 14 countries including USA, UK, Australia, UAE, Africa, France and Poland. Majority of the sales of the Company comes from exports. For the 3 months ended June 30, 2022 and for Fiscals 2022, the Company’s revenue from exports contributed 57.61% and 55.14%, respectively, of total revenues from operations.
Murtaza Ali Moti, Chief Exectuive Officer. Sah Polymers |
Return on net-worth is 16.42% and PAT margin for the year ended 2022 stood at 5.39%. The Company’s sales have grown from Rs. 49.90 crores in FY 2020 to Rs. 81.23 crores in FY 22. The sales for the quarter ended June 2022 stood at Rs.27.59 crores. Thus the sales CAGR for last three completed years is 27.6%. Similarly, the post-tax profits, i.e., PAT of the Company has increased with CAGR of 284% over last three years.
The Company operates at 85% to 92% of the installed capacity and therefore going for further capex. Total capex is Rs. 33.81 crores, out of which the Company has taken bridge loan of Rs. 15.71 crores from the holding company and deployed while the IPO approvals came so that the overall timeframe of the installation is not delayed. The new Project is estimated to commence commercial operations within this year 2022-23 itself. Out of the current manufacturing facility (located at Mewar Industrial Area, Madri, Udaipur, Rajasthan) the Company manufactures a diverse range of HDPE/PP Woven Sacks and FIBC products with filling capacity of upto 500 KGs per bag/sack. The Company intends to manufacture new variant of FIBC products with filling capacities of upto 2,500 KGs out of the new Unit. The installed capacity of the new Unit is of 3,960 MT per annum, which is equivalent to current capacity therefore the company’s capacity will double upon commissioning of new plant.
Kanpur Plastipack Ltd., Rishi Techtex Ltd., Gopala Polyplast Ltd., Jumbo Bag Ltd., SMVD Polypack Ltd., EMMBI Industries Ltd., and Commercial Syn. Bags Ltd. are competitors; however, the peers are not directly comparable due to the type, range of products/services, turnover, and size of the firm.
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