Retail investors led the demand for the initial public offering of Rajasthan-based Sah Polymers Ltd. on the second day of subscription.
The IPO was subscribed 86% on the first day of subscription.
The initial stake sale consists of a fresh issue of 1.02 crore shares, aggregating to Rs 66.3 crore, by the promoter group and selling shareholders. The price band is fixed at Rs 61–65 per share.
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.
The manufacturer of polypropylene and high-density polyethylene FIBCs, or flexible intermediate bulk containers, will use Rs 8.45 crore of the net proceeds to set up a new manufacturing facility to make new variants of FIBC, it said in its red herring prospectus filed with the markets regulator.
It will direct Rs 16.66 crore toward repayment or prepayment of certain secured and unsecured borrowings.
As much as Rs 14.95 crore will be used to fund the working capital requirements of the company. 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.
Subscription Status: Day 2
The IPO was subscribed 2.37 times as of 5:00 p.m. on Jan. 2.
Institutional investors: 0.39 times
Non-institutional investors: 2.94 times
Retail investors: 7.46 times
Research Report On Sah Polymers:
Leading Manufacturer Of PP Woven Fabrics In India: Reliance Securities
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