Sah Polymers shares witness a stellar debut on the stock exchanges as stock lists with 30% gains over the IPO price, supported by healthy subscription and better financial performance. Sah Polymers shares debuted at a price of Rs 85 on the National Stock Exchange (NSE) and jumped 5% to Rs 89 within minutes. The company’s Rs 66 crore IPO was subscribed 17.46 times, backed largely by retail investors and high net worth individuals. The company set the issue price at Rs 65 per share, the upper end of the band of Rs 61-65 per share offered. Premium listing for the stock was expected as ahead of the listing, Sah Polymers shares commanded a grey market premium of 10-15%, and the public offer received a healthy response.
Santosh Meena, Head of Research at Swastika Investmart expected Sah Polymers to have a positive listing. “The market for polymers is anticipated to reach US$790 billion by 2027, expanding at a CAGR of 5.5% from 2022 to 2027. Sah Polymers’ business has a wide range of clients from different industries and regions, as well as a robust product offering. A management team with expertise is also advantageous. The business has recorded significant growth on the financial front,” Meena said.
The IPO, which consisted of only a fresh issue of 1.02 crore equity shares, received bids for 9.8 crore shares against 56.1 lakh shares on offer, according to exchange data. The initial public offer got subscribed 17.5 times on the last day of the offer. The category for the Retail Individual Investors (RIIs) portion received 39.8 times subscription and high net-worth individuals 32.7 times. Investors could bid in multiples of 230 equity shares with the minimum investment by retail investors at the upper end of the price band being Rs 14,950 for one lot, while the maximum would be Rs 1,94,350 for 13 lots.
Sah Polymers earlier said that it will use these funds to up a new manufacturing facility for producing a new variant of Flexible Intermediate Bulk Containers (FIBC), repayment of borrowings, and also fund the working capital requirements. The Udaipur-based bulk packaging solutions provider is primarily engaged in the manufacturing of high-density polyethylene (HDPE) FIBC bags, polypropylene (PP), woven sacks, and woven polymer-based products among others. In India, the company has a presence in six states and a union territory. Apart from this, Sah Polymers has presence in six regions across the world. The company is 100% owned by the promoters with Sat Industries holding 91.79% shares and Sat Invest having the rest.