Saw Polymers Bump IPO Listing, Stock Debuts at 30% Premium to IPO Price; Stock trading at Rs 89 on the NSE

Sah Polymers shares make a stellar debut on the stock exchanges as stock listings trade up 30% from the IPO price, helped by healthy underwriting and better financial performance. Shares of Sah Polymers debuted on the National Stock Exchange (NSE) at a price of Rs 85 and rose 5% to Rs 89 in minutes. The company’s Rs 66 crore IPO drew 17.46 times and was largely backed by retail investors and high net worth individuals. The company set the issue price at Rs 65 per share, the upper end of the range of Rs 61-65 per share on offer. The stock’s premium listing was anticipated as Sah Polymers shares earned a gray market premium of 10-15% prior to the listing and the public offering received a healthy response.

Santosh Meena, head of research at Swastika Investmart, expected a positive listing from Sah Polymers. “The polymers market is expected to reach $790 billion by 2027 and will grow at a CAGR of 5.5% from 2022 to 2027. Sah Polymers’ business has a diverse range of customers across different industries and geographies, and a robust product offering. A management team with expertise is also advantageous. The company has seen significant growth on the financial front,” Meena said.

The IPO, which consisted of just 1.02 billion new shares issued, received offers for 9.8 billion shares versus 56.1 billion shares offered, according to stock market data. The IPO drew 17.5 subscriptions on the last day of the offering. The category for the Retail Individual Investors (RIIs) portion received subscriptions 39.8 times and high net worth individuals 32.7 times. Investors could bid in multiples of 230 shares, with retail investors at the higher end of the price range having a minimum investment of Rs 14,950 for one lot, while the maximum would be Rs 1,94,350 for 13 lots.

Sah Polymers previously said it will use these funds to build a new manufacturing facility to manufacture a new variant of Flexible Intermediate Bulk Containers (FIBC), repay loans and also fund working capital needs. The Udaipur-based bulk packaging solution provider is mainly engaged in the manufacture of FIBC sacks from high-density polyethylene (HDPE), polypropylene (PP), woven sacks and polymer-based woven products, among others. In India, the company is represented in six states and one union territory. Apart from that, Sah Polymers is present in six regions around the world. The company is 100% owned by the promoters, with Sat Industries owning 91.79% and Sat Invest the remainder.