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Anchor Investor line up to subscribe last IPO of year 2022. Sah Polymers Limited, Udaipur based manufacturer of customised bulk packaging solution to various Industries, said that it has successfully completed anchor investor allocation, raised ?29.83 crore from Institutional Investors as part of anchor book allocation, a day ahead of its public offerings.

Mavin India Fund, Saint Capital Fund and Leading Light Fund VCC, were the investors that participated in the anchor book. The company informed exchanges that it has allocated 45.90 lacs equity shares, to anchor investors, at a price of ?65 per share, the upper end of its price band of ? 61-65 per share. The issue opens for subscription to public market investors on 30^th December and will close on 4^th January.

Notably, the issue involves all fresh issue of up to 1,02,00,000 Equity Shares; with allocation of upto 76,50,000 to QIB, 15,30,000 to NII and 10,20,000 to retail participants without any offer for sale component. Out of the issue proceeds,? 8.18 crores shall be utilized for capex for setting up of new manufacturing unit; ? 19.66 shall be towards repayment of debt, ? 14.95 crores for working capital and balance for general corporate purposes.  The debt repayment is towards the bridge loan from the holding company which was deployed in the capex.

Sah Polymers plan to raise ?66 crore from investors. Those who wish to apply for the IPO can do so in a lot of 230 shares, with a Minimum application size of ?14,950.

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.

Company’s sales have grown from ? 49.90 crores in FY  2020 to ? 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.

Pantomath Capital Advisors Private Limited is the sole book running lead manager to the issue and Link Intime India Private Limited is the registrar to the offer. The equity shares are proposed to be listed on the Main Board of BSE and NSE.

BSE Link: https://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20221229-8

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