- Polymer manufacturer and packaging solutions provider Sah Polymers was subscribed 2.37 times on the second day of the IPO underwriting process.
- The Udaipur-based company plans to raise £66.3 million through a new issue of 10.2 million shares with no offer-for-sale (OFS) component.
- The price range of the IPO is set at ₹61-65 per share.
- The company’s shares fetch a premium of £9 in the gray market.
The IPO of Sah Polymers, a polymer manufacturer and packaging solutions provider based in Udaipur, drew 2.37 times on the second day of the IPO subscription process.
Sah Polymers’ IPO was also well received by retail investors, with 7.46 subscriptions.
The company’s £66.3 million IPO is an all-new issue of 10.2 million shares with no offering component (OFS).
The company’s shares currently fetch a gray market premium (GMP) of £9 per share. GMP is the premium at which IPO stocks trade over-the-counter before listing on exchanges.
| category of investors | subscription status |
| Qualified institutional buyers | 0.39 times |
| Non-Institutional Investors | 2.94 times |
| retail trade | 7.46 times |
| In total | 2.37 times |
The Company is principally engaged in the manufacture and sale of polypropylene (PP) and high-density polyethylene (HDPE) bulk bags (or FIBC bags), woven bags and HDPE/PP woven fabrics.
Sah Polymers provides custom bulk packaging solutions for business-to-business manufacturers targeting various industries such as agro-pesticides, basic pharmaceuticals, cement, chemicals, fertilizers, food, textiles, ceramics and steel.
It exports products to 14 countries such as Algeria, Togo, Ghana, Poland, Portugal, France, Italy, Dominican Republic, USA, Australia, UAE, Palestine, UK and Ireland.
Sah Polymers intends to use a portion of its net proceeds from the IPO to build a new facility with an additional 3.96 billion tons per year of installed capacity to manufacture different varieties of FIBC products. Once established, it will double the company’s total production capacity to 7.92 billion tons per year.
It currently has a manufacturing facility in Udaipur, Rajasthan with an installed production capacity of 3.96 million tons per year.
The Company also intends to use a portion of the proceeds to pay down debt, fund working capital needs and other general corporate purposes.
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