Sabar Flex India SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 08 Sep 2022 – 13 Sep 2022
- Listing date
- 21 Sep 2022
- Face value
- ₹10 per share
- Issue price
- ₹11 per share
- Lot size
- 10,000 shares
- Total issue size
- ₹4.48 Cr
- Market cap at offer price
- ₹16.58 Cr
- Promoter holding
- 53.25% → 39.00% pre-issue → post-issue
- ISIN
- INE0DZ101013
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- GYR Capital Advisors Pvt.Ltd.
- Registered office
- B/1/104, Palledium, Nr.Orchid Wood Opp.Divya Bhaskar, Corporate Road, Prahladnagar, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 2,10,000 | — | — |
Application size
Minimum 10,000 shares per lot, in multiples, at ₹11
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 10,000 | ₹1,10,000 |
| S-HNI (min) | 2 | 20,000 | ₹2,20,000 |
| S-HNI (max) | 9 | 90,000 | ₹9,90,000 |
| B-HNI (min) | 10 | 1,00,000 | ₹11,00,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 1.58 | — |
| P/E (×) | 6.96 | — |
| Market cap | — | ₹16.58 Cr |
Key performance indicators
- Return on net worth
- 14.78%
- PAT margin
- 2.41%
- NAV per share
- ₹14.30
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Sabar Flex India SME
Sabar Flex India Limited began as the partnership firm 'Sabar Flex Industries' (Deed of Partnership dated March 06, 2007) and was converted into a public limited company on June 07, 2018 (CIN U25209GJ2018PLC102720), with its registered office in Prahladnagar, Ahmedabad, Gujarat. Promoted by Mr. Hikmatbahadur Krishnabahadur Kunwar (Chairman & Managing Director), the company manufactures packaging products made from plastics — multilayer/monolayer blown films, gravure-printed laminates, and converted products such as multi-colour, stand-up, zip-lock and vacuum pouches, paper bags and e-commerce bags — from LDPE/LLDPE granules and master batch at three owned manufacturing plots in Dhandha, Himatnagar, Gujarat (total installed capacity 5,400 MT, 55.83% utilised in FY22) with 92 employees. Its key customers are well-known brands in the food, beverage and household industry (dairy products, biscuits/cakes/rusks, namkeens, frozen snacks, tea, spices, rice, salt), and it claims location advantage near Rajasthan's salt industry; sales are made on purchase orders without long-term customer contracts. In FY22 the company generated total revenue of ₹7,237.01 lakhs (revenue from operations ₹7,235.78 lakhs), EBITDA of ₹476.53 lakhs (6.58% margin) and profit after tax of ₹174.28 lakhs (2.41% margin).
Company Analysis
from RHPSabar Flex India Limited manufactures plastic-based flexible packaging materials — multilayer films, printed laminates, pouches and bags — serving the packaging needs of food & beverage, household, personal care, pharmaceutical, agricultural and e-commerce industries.
Sabar Flex India Limited began as the partnership firm 'Sabar Flex Industries' (Deed of Partnership dated March 06, 2007) and was converted into a public limited company on June 07, 2018 (CIN U25209GJ2018PLC102720), with its registered office in Prahladnagar, Ahmedabad, Gujarat. Promoted by Mr. Hikmatbahadur Krishnabahadur Kunwar (Chairman & Managing Director), the company manufactures packaging products made from plastics — multilayer/monolayer blown films, gravure-printed laminates, and converted products such as multi-colour, stand-up, zip-lock and vacuum pouches, paper bags and e-commerce bags — from LDPE/LLDPE granules and master batch at three owned manufacturing plots in Dhandha, Himatnagar, Gujarat (total installed capacity 5,400 MT, 55.83% utilised in FY22) with 92 employees. Its key customers are well-known brands in the food, beverage and household industry (dairy products, biscuits/cakes/rusks, namkeens, frozen snacks, tea, spices, rice, salt), and it claims location advantage near Rajasthan's salt industry; sales are made on purchase orders without long-term customer contracts. In FY22 the company generated total revenue of ₹7,237.01 lakhs (revenue from operations ₹7,235.78 lakhs), EBITDA of ₹476.53 lakhs (6.58% margin) and profit after tax of ₹174.28 lakhs (2.41% margin).
Objects of the Issue
- Funding the working capital requirements of the company ₹ 310.00 lakhs p.57
- General Corporate Purposes ₹ 89.65 lakhs p.57
Issue Structure
- Total Issue
- ₹ 447.70 lakhs (40,70,000 Equity Shares of ₹ 10/- each at ₹ 11 per share)
- Fresh Issue
- ₹ 447.70 lakhs (entire issue constitutes fresh issue of equity shares)
- Offer for Sale
- Nil
- Price Band
- Fixed Price of ₹ 11 per Equity Share (Issue Price is 1.1 times of the face value)
- Lot Size
- Market lot and Trading lot of 10,000 Equity Shares and in multiples of 10,000 thereafter
- Face Value
- ₹ 10/-
Business Model
The company earns revenue almost entirely from the manufacture and domestic sale of goods (₹7,235.78 lakhs in FY22): it converts LDPE/LLDPE granules via blown-film extrusion, gravure printing, lamination, cutting/slitting and pouch-making into multilayer films, printed laminates, pouches and bags sold to customers in food & beverage, salt, household, hygiene/personal care, pharmaceutical, agricultural and e-commerce sectors, typically on a purchase-order basis rather than under long-term supply contracts.
Business Segments
SWOT Analysis
- • Location advantage near Rajasthan salt-industry belt, yielding order flow and lower logistics costs(p.88)
- • Diversified customer base with long-term relationships among leading players(p.88)
- • Experienced promoter-led management team(p.88)
- • Quality assurance across all products(p.88)
- • Dedicated in-house R&D and new product development capability(p.88)
- • Improving financial track record with rising margins(p.87)
- • High indebtedness with restrictive lender covenants(p.24)
- • Dependence on promoter / Key Managerial Personnel(p.23)
- • No power back-up at manufacturing facility(p.22)
- • Extensive related party transactions with promoters, directors and promoter group(p.26)
- • No long-term customer contracts; revenue driven by purchase orders(p.27)
- • No long-term raw material supply agreements(p.27)
- • High working-capital intensity of the business(p.25)
- • Past delays and errors in statutory filings with RoC(p.23)
- • Indian packaging market projected to expand from USD 50.5 billion (2019) to USD 204.81 billion by 2025(p.70)
- • Sector growing at 22-25% CAGR as per PIAI(p.69)
- • Headroom in per-capita packaging consumption versus developed regions(p.69)
- • Strategy to enhance manufacturing capacities for economies of scale(p.89)
- • Geographic expansion into South India and export traction from Nepal(p.94)
- • Product diversification into aluminium-layered films for pharmaceutical end-use(p.94)
- • E-commerce demand tailwind for flexible packaging(p.85)
- • Continuing uncertainty from the COVID-19 pandemic and possible renewed lockdowns(p.22)
- • Volatility in raw material (LDPE) prices pressuring margins(p.27)
- • Macro-economic and political factors beyond company control(p.30)
- • Inflation raising cost of inputs(p.32)
- • Changing laws, regulations and tax regimes (including GST)(p.35)
- • Competitive disadvantage versus new entrants eligible for 15% tax rate under Section 115BAB(p.23)
- • Rising fuel costs increasing third-party freight charges(p.25)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Hikmatbahadur Krishnabahadur Kunwar | Promoter; Chairman and Managing Director | 53.25% | 39.00% |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.