Sah Polymers IPO – Review

Sah Polymers Limited – a leading PP Woven Bags Manufacturer in India is planning to raise INR 66 Crore via IPO [Fresh Issue 66 Cr + OFS NIL]

 

Sah Polymers – History

The Company was originally incorporated in the year 1992 under the name and style of Peacock Continental Limite at Udaipur (Rajasthan, India), under the provisions of the Companies Act, 1956.

The name of the company was changed to Sah Polymers Limited pursuant to a special resolution passed in the Extra Ordinary General Meeting of the company held on July 22, 1998

 

Sah Polymers – Business

Sah Polymers Limited (an ISO 9001:2015 certified company) is primarily engaged in the manufacturing and selling of Polypropylene, BOPP Laminated Bags, High-Density Polyethylene, Woven Bags, and Flexible Intermediate Bulk Containers in India.

The Company offers customised bulk packaging solutions to B2B (business-to-business) manufacturers catering to different industries such as –

  • Agro Pesticides Industry,
  • Basic Drug Industry,
  • Cement Industry,
  • Cattle Feed Industry,
  • Chemical Industry,
  • Fertilizer Industry,
  • Food Products Industry,
  • Metal Industry,
  • Mineral Industry,
  • Paper Mill Industry,
  • Textile Industry,
  • Ceramic Industry, and
  • Steel Industry

Besides this, the Company is a Del Credere Associate cum Consignment Stockist of Indian Oil Corporation Limited (IOCL) and also operates as a Dealer Operated Polymer Warehouse (DOPW) of Indian Oil Corporation Limited for their polymer division.

The Company also enters into arrangements with third-party manufacturers to manufacture its tape and fabric based on customers’ requirements.

The Company mainly has 2 business divisions, first is domestic sales and second is exports.

 

Sah Polymers

 

Company Presence

The Company has a presence in 6 states and 1 union territory as far as the domestic market is concerned; while internationally it supplies products in 6 regions such as Africa, Australia, Europe, the Middle East, South-East Asia, the USA, and Caribbean Island.

 

Manufacturing Facility

Presently, the company has one manufacturing facility with an installed production capacity of 3960 m.t. p.a. located at Udaipur (Rajasthan, India).

 

Strategies Ahead

  • Setting up a new manufacturing facility to widen product portfolio and increase our capacity
  • Increase customer network in existing markets and enter new geographical markets
  • Carefully evaluate and pursue accretive acquisitions

 

Promoters

Sat Industries Limited

 

IPO Details

30 Dec 2022 to 04 Jan 2023

Face Value (FV) = INR 10

Issue Price = INR 61 to INR 65

Minimum Investment Amount = INR 14950

Minimum Bid = 230 Shares

Listing On = BSE, NSE

 

Book Running Lead Managers

Pantomath Capital Advisors Private Limited

 

Financials

 

Conclusion

FinBlab recommends NEUTRAL ratings on Sah Polymers IPO

 

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