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Udaipur, Rajasthan-based Sah Polymers Limited, primarily engaged in manufacturing and selling of Polypropylene (PP)/ High Density Polyethylene (HDPE) Flexible Intermediate Bulk Containers (FIBC) Bags, Woven Sacks, HDPE/PP woven fabrics, woven polymer based products has received capital markets regulator, Securities and Exchange Board of India's (SEBI) approval to raise funds through an initial public offering (IPO). The company had filed its draft papers in April this year.

The IPO consists of a fresh issue of 102,00,000 equity shares, with no offer for sale component. The issue has a face value of Rs 10 per equity share for the proposed share sale. Sah Polymers obtained its observation letter yesterday, an update with SEBI showed.

Sah Polymers is led by Asad Daud, and Hakim Sadiq Ali Tidiwala, 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. It is also a Del Credere Associate cum Consignment Stockist (DCA/ CS) of Indian Oil Corporation Limited, as well as a Dealer Operated Polymer Warehouse (DOPW) of Indian Oil Corporation’s polymer division.

The Udaipur-based company has two business division namely Domestic sales and exports. Based on sales, it has presence in six states and one union territory for its local market. Internationally, it supplies its products in six regions: Africa, the Middle East, Europe, The United States, Australia, and Caribbean. For the nine months ended December 31, 2021 and fiscal 2021, exports contributed 37.40 percent and 46.80 percent, respectively.

Revenue from operations climbed 12.16 percent from Rs 49.10 crore in Fiscal 2020 to Rs 55.07 crore in Fiscal 2021, attributable to an increase in sales of manufactured goods which included HDPEC and LDPE bags. Revenue for the nine months ended December 2021 stood at Rs 54.01 crore. The Consolidated Revenue of the Company for the nine month ended December 2021 stood at Rs. 64.78 Crores.

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.

Sebi Link: https://www.sebi.gov.in/filings/processing-status/oct-2022/processing-status-issues_59558.html

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