Sah Polymers IPO Subscribed 5.35 Times On Day 3

On the third day of subscription, retail investors continued to spearhead the demand for the initial public offering of Sah Polymers Ltd.

The IPO of the Rajasthan-based maker of polypropylene and high-density polyethylene FIBCs, or flexible intermediate bulk containers, was fully subscribed on the second day.

It was subscribed at 86% on the first day.

The initial stake sale consists of a fresh issue of 1.02 crore shares at Rs 61–65 per share, aggregating to Rs 66.3 crore, by the promoter group and selling shareholders.

The promoters and the promoter group will hold 60.5% of the post-offer issued and paid-up equity share capital. The issue comprises 39.5% of the post-offer equity capital in the IPO.

The company raised Rs 29.84 crore through its anchor portion, according to an exchange filing. Three anchor investors—Leading Light Fund VCC-The Triumph Fund, Saint Capital Fund, and Maven India Fund—participated in the anchor round.

Sah Polymers, in its red herring prospectus, said it will use Rs 8.45 crore of the net proceeds to set up a new manufacturing facility to make new variants of FIBC. The company also plans to use Rs 16.66 crore for repaying or prepaying certain secured and unsecured borrowings.

As much as Rs 14.95 crore will be used to fund the working capital requirements of the company, it said. Sah Polymers also plans to use some amount from the net proceeds, not exceeding 25% of the gross proceeds of the issue, for general corporate purposes, it added.