Sah Polymers
Mainboard₹66.30 Cr issue
+30.77%
Listing gain over issue price
Issue size
₹66.30 Cr
1 lot at cut-off
₹14,950
Lot size
230shares
Open
30 Dec 2022
Close
04 Jan 2023
Allotment
09 Jan 2023
Listing
12 Jan 2023
Listing performance
Issue price
₹65
Listed at
₹85
Listing-day close
₹89.25
Latest price
₹67.15
Close on 23 Oct 2026
Listing gain
+30.77%
Return since issue
+3.31%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 30 Dec 2022 – 04 Jan 2023
- Listing date
- 12 Jan 2023
- Face value
- ₹10 per share
- Issue price
- ₹65 per share
- Lot size
- 230 shares
- Total issue size
- ₹66.30 Cr
- Market cap at offer price
- ₹168 Cr
- Promoter holding
- 100.00% → 60.46% pre-issue → post-issue
- ISIN
- INE035801013
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Pantomath Capital Advisors Pvt.Ltd.
- Registered office
- E-260-261, Mewar Industrial Area, Madri, Rajasthan
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 45,90,000 | — | — |
Application size
Minimum 230 shares per lot, in multiples, at ₹65
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 230 | ₹14,950 |
| Retail (max) | 13 | 2,990 | ₹1,94,350 |
| S-HNI (min) | 14 | 3,220 | ₹2,09,300 |
| S-HNI (max) | 66 | 15,180 | ₹9,86,700 |
| B-HNI (min) | 67 | 15,410 | ₹10,01,650 |
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.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
45,90,000
Anchor portion
₹29.84 Cr
at ₹65 per share
Valuation and performance
Valuation at offer price
₹65 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 2.81 | — |
| P/E (×) | 23.13 | — |
| Market cap | — | ₹168 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 16.42%
- ROCE
- 14.00%
- PAT margin
- 5.43%
- EBITDA margin
- 9.61%
- NAV per share
- ₹17.09
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Sah Polymers
SAH Polymers Limited is an ISO 9001:2015 certified manufacturer incorporated in 1992 (originally as Peacock Continental Limited, renamed in 1998) engaged in manufacturing and selling customised bulk packaging solutions including Polypropylene (PP) and High Density Polyethylene (HDPE) FIBC Bags, Woven Sacks, and woven polymer-based products. The company serves B2B manufacturers across industries such as Agro Pesticides, Basic Drug, Cement, Chemical, Fertilizer, Food Products, Textile, Ceramic and Steel. It operates two business divisions: domestic sales (present in 5 states and 1 union territory) and exports (to 14 countries including Algeria, Togo, Ghana, Poland, Portugal, France, Italy, Dominican Republic, USA, Australia, UAE, Palestine, UK and Ireland). The company is also a Del Credere Associate cum Consignment Stockist (DCA/CS) of Indian Oil Corporation Limited and operates as Dealer Operated Polymer Warehouse (DOPW) for IOC's polymer division. For FY2022, revenue from exports was Rs. 4,439.39 lakhs, representing 55.14% of total revenue from operations.
Company Analysis
from RHPSAH Polymers Limited manufactures and sells polypropylene and high-density polyethylene flexible intermediate bulk containers (FIBC), woven sacks, and woven fabrics for B2B customers across agro-pesticides, chemicals, cement, fertilizer, and other industries, operating domestically and internationally.
SAH Polymers Limited is an ISO 9001:2015 certified manufacturer incorporated in 1992 (originally as Peacock Continental Limited, renamed in 1998) engaged in manufacturing and selling customised bulk packaging solutions including Polypropylene (PP) and High Density Polyethylene (HDPE) FIBC Bags, Woven Sacks, and woven polymer-based products. The company serves B2B manufacturers across industries such as Agro Pesticides, Basic Drug, Cement, Chemical, Fertilizer, Food Products, Textile, Ceramic and Steel. It operates two business divisions: domestic sales (present in 5 states and 1 union territory) and exports (to 14 countries including Algeria, Togo, Ghana, Poland, Portugal, France, Italy, Dominican Republic, USA, Australia, UAE, Palestine, UK and Ireland). The company is also a Del Credere Associate cum Consignment Stockist (DCA/CS) of Indian Oil Corporation Limited and operates as Dealer Operated Polymer Warehouse (DOPW) for IOC's polymer division. For FY2022, revenue from exports was Rs. 4,439.39 lakhs, representing 55.14% of total revenue from operations.
PackagingAgro PesticidesBasic DrugsCementChemicalsFertilizersFood ProductsTextilesCeramicsSteel
Objects of the Issue
- Setting up of a new manufacturing facility to manufacture Flexible Intermediate Bulk Containers (FIBC) ₹817.18 lakhs p.25
- Repayment of certain secured and unsecured borrowings ₹1,966.15 lakhs p.25
- Funding the working capital requirements ₹1,495.81 lakhs p.25
- General corporate purposes ₹1,250.47 lakhs p.25
- Setting up of a new manufacturing facility to manufacture new variant of Flexible Intermediate Bulk Containers (FIBC) Rs. 817.18 lakhs p.95
- Repayment of certain secured and unsecured borrowings in full availed by our Company Rs. 1,966.15 lakhs p.95
- Funding the working capital requirements of our Company Rs. 1,495.81 lakhs p.95
- General corporate purposes Rs. 1,250.47 lakhs p.95
- Setting up of new manufacturing facility to manufacture Flexible Intermediate Bulk Containers (FIBC) with an annual installed capacity of 3960 MT at Udaipur, Rajasthan, including land, building, plant and machinery, miscellaneous fixed assets, electrification, and pre-operative expenditure ₹3,759.22 lakhs p.90
- Repayment of Channel Financing Facility from Tata Capital Financial Services Limited and unsecured loans from SAT Industries Limited and DA Tradetech Private Limited ₹1,966.15 lakhs p.104
- Funding working capital requirements for Fiscal 2023 ₹1,495.81 lakhs p.107
- General corporate purposes including strategic initiatives, brand building, marketing activities, and ongoing general corporate exigencies ₹1,250.47 lakhs p.109
- Repayment of borrowings
- Funding capex for the new plant
- General corporate purposes
Issue Structure
- Total Issue
- ₹6,630.00 lakhs
- Fresh Issue
- 102,00,000 Equity Shares aggregating to ₹6,630.00 lakhs
- Offer for Sale
- Not applicable
- Price Band
- ₹61 to ₹65 per Equity Share
- Lot Size
- 230 Equity Shares and in multiples of 230 Equity Shares thereafter
- Face Value
- ₹10 per Equity Share
Business Model
Revenue is generated from B2B sales of customised packaging products (FIBC bags, woven sacks, woven fabrics) manufactured to customer specifications, sold through domestic and export channels. Additionally, the company earns commission through its arrangement with Indian Oil Corporation Limited as Del Credere Associate for polymer sales and warehouse operations.
Business Segments
Sales of FIBC bags, woven sacks, and woven fabrics within India, present in 5 states and 1 union territory
Sales of packaging products to international markets in 14 countries
Manufactures Flexible Intermediate Bulk Containers (FIBC) and HDPE/PP woven sacks with filling capacity up to 500 KGs per bag/sack at its existing facility, with plans to expand to produce FIBC products with filling capacities up to 2,500 KGs
Manufacturing of FIBC bags, woven sacks, woven fabrics, container bags, and related plastic packaging products from PP and HDPE materials
Sale of traded plastic products and materials
Job work, commission on DCA (Del Credere Associate) operations, market research services, and lease rent
Interest income from business operations and export incentives
HDPE/PP woven fabrics and sacks manufactured for packaging applications
Sale of traded goods
Job work, commission on DCA operations, and market research services
Interest earned on loans extended to related parties
Manufacturing of Polypropylene (PP)/High Density Polyethylene (HDPE) FIBC Bags, Woven Sacks, and HDPE/PP woven fabrics
Del Credere Associate cum Consignment Stockist and Dealer Operated Polymer Warehouse operations for Indian Oil Corporation Limited
Financing activities as a reportable segment
SWOT Analysis
Strengths
- • ISO 9001:2015 certified manufacturer with established B2B customer base across multiple industries(p.24)
- • Strong export presence in 14 countries with exports representing >50% of revenue(p.24)
- • Strategic role as Del Credere Associate and Dealer Operated Polymer Warehouse for Indian Oil Corporation Limited(p.24)
- • Positive return on equity with PAT margin higher than several listed peers(p.33)
- • Operates in high-growth packaging industry with strong CAGR(p.24)
- • Established manufacturing facility with operational experience(p.50)
- • Significant export market presence across 14 countries(p.54)
- • Ability to maintain quality standards through established procedures(p.54)
- • Diverse product portfolio across FIBC, woven sacks, and specialized bags(p.132)
- • Established presence in multiple geographic and industry segments reducing dependence risk(p.132)
- • Experienced management with combined 20+ years in FIBC packaging sector(p.130)
- • ISO 9001:2015 certified with quality control at multiple production stages(p.130)
- • Significant export presence across 14 countries contributing 55-57% of revenue(p.130)
- • Capacity expansion underway with new facility adding 3960 MT annual capacity(p.130)
- • Significant manufacturing capacity with annual production of 6,062 MT of HDPE/PP woven fabrics and sacks(p.188)
- • Recent acquisition of Fibcorp Polyweave subsidiary to expand into bulk bags and FIBC manufacturing(p.154)
- • Strong revenue growth from operations, more than doubling from FY2020 to FY2022(p.186)
- • No defaults or rescheduling of borrowings with financial institutions(p.155)
- • No lock-outs or strikes at any time in the company(p.155)
Weaknesses
- • Negative operating cash flows in recent period with cash outflow of Rs. 20.94 lakhs in Q1 FY2023(p.30)
- • Highly concentrated customer base with top 10 customers representing 61.72% of Q1 FY2023 revenue(p.32)
- • Significant working capital requirements consuming 42-50% of total assets(p.34)
- • High dependence on raw materials with 57.32-64.23% of revenue consumed by raw material costs(p.42)
- • Significant unsecured loan exposure of Rs. 2420.83 lakhs repayable on demand(p.37)
- • Promoter group company (Aeroflex Industries Limited) appears on RBI wilful defaulters list(p.31)
- • Reliance on limited number of raw material suppliers with top 10 suppliers representing 76.24-96.84% of purchases(p.42)
- • No long-term agreements with customers; reliance on short-term purchase orders(p.49)
- • Single concentrated manufacturing facility creating operational risk(p.50)
- • High dependence on electricity from state board with limited backup(p.50)
- • Labour-intensive operations with unionization risk(p.51)
- • Significant debt burden with multiple loan covenants(p.51)
- • High trade receivables concentration indicating customer credit risk(p.55)
- • Dependence on key personnel including promoters for personal guarantees(p.57)
- • High debt-to-equity ratio of 1.15-1.19 indicating significant leverage(p.131)
- • Material indebtedness to promoters of Rs. 1,985 lakhs repayable on demand(p.104)
- • Concentration of major customers in Rajasthan state limiting geographic diversification(p.140)
- • Limited manufacturing footprint with single operational facility in Udaipur(p.130)
- • Significant dependence on imported raw materials subject to price volatility(p.103)
- • High financial leverage with current borrowings of Rs. 3,164.06 lakhs against equity of Rs. 939.25 lakhs(p.185)
- • Substantial unsecured loans from related party (promoter) totaling Rs. 790.18 lakhs(p.201)
- • Significant concentration of promoter shareholding at 91.79%, limiting public float(p.200)
- • Subsidiary carries substantial indebtedness despite consolidation benefit(p.156)
- • Accumulated working capital deficit indicated by negative changes in inventory and receivables(p.187)
- • Significant dependence on few customers and suppliers(p.233)
- • High debt-to-equity ratio indicating financial leverage(p.216)
- • Declining profitability in current period versus prior year(p.228)
- • Contingent liabilities and pending litigation(p.231)
Opportunities
- • Proposed expansion of manufacturing capacity with new facility for FIBC and woven sacks production(p.45)
- • High growth potential in Indian packaging market expected to reach USD 204.81 billion by 2025(p.24)
- • Expansion of product portfolio with new variants of FIBC products and woven sacks(p.35)
- • Access to existing customer base to drive adoption of new products(p.48)
- • Opportunity to leverage strategic partnership with Indian Oil Corporation for market access(p.48)
- • Development of new manufacturing facility in MSME-exempt zone reducing regulatory compliance burden for 3 years(p.44)
- • Expansion into new FIBC product variants with higher capacity(p.97)
- • Capacity expansion in response to growing market demand(p.57)
- • Enhanced corporate image and market access through IPO listing(p.94)
- • Expanding capacity to cater growing demand from existing and new customer segments(p.132)
- • Global FIBC market projected to grow at 5.3% CAGR through 2028(p.128)
- • Indian packaging market growing at 22-25% per annum with India as preferred hub(p.129)
- • Opportunity to deepen market penetration in existing domestic states(p.132)
- • Growing demand for FIBC in pharmaceutical and food industries post-COVID(p.128)
- • Expansion into bulk bags and FIBC manufacturing through acquired subsidiary engaged in various types of bulk and FIBC bags(p.156)
- • Growing export markets with significant international receivables in USD, EURO and GBP(p.205)
- • Capacity expansion initiatives with Rs. 925.49 lakhs in capital work-in-progress(p.185)
- • Potential for cost optimization through increased capacity utilization given pre-operational expenses in CWIP(p.196)
- • Expansion into new markets and customer segments(p.216)
- • Strong export revenue contribution and international presence(p.216)
- • Growing market for polymer packaging and woven products(p.216)
- • Recent subsidiary acquisition expanding manufacturing capacity(p.217)
- • Secured term loan facility with improved credit access(p.217)
Threats
- • High competition in fragmented FIBC/packaging industry from larger and smaller competitors with greater resources(p.32)
- • Raw material price volatility and supply disruptions due to commodity price fluctuations and external factors(p.42)
- • Risk of facility concentration in single region (Rajasthan) exposing company to regional operating risks(p.36)
- • Potential ban on plastic products could adversely impact entire business model(p.49)
- • Continuation and impact of COVID-19 pandemic on operations, workforce availability and customer demand(p.49)
- • Regulatory risks including need for multiple approvals and licenses for new manufacturing facility(p.44)
- • Risk of termination or non-renewal of critical IOCL agreement affecting significant portion of business(p.48)
- • Technological obsolescence risk requiring continuous product innovation and development(p.49)
- • Vulnerability to foreign exchange fluctuations affecting exports(p.54)
- • Exposure to geopolitical risks in export markets(p.54)
- • Regulatory changes and environmental compliance requirements(p.55)
- • Pricing pressure from customers affecting margins(p.56)
- • Industry cyclicality and economic downturn exposure(p.64)
- • Rising input costs and inflation impact on profitability(p.65)
- • Dependence on third-party logistics and transportation(p.53)
- • Global economic slowdown forecast with GDP growth slowing to 2.7% in 2023(p.120)
- • Intense competition from organized and regional players with greater resources(p.140)
- • Raw material price volatility with PP and HDPE subject to global commodity prices(p.138)
- • Regulatory and environmental compliance requirements for manufacturing operations(p.140)
- • Global inflation and currency fluctuation risks affecting export competitiveness(p.120)
- • High reliance on borrowings and financial institution funding with multiple secured and unsecured credit lines(p.201)
- • Significant foreign exchange exposure with trade receivables in USD, EURO and GBP representing 696.38 lakhs(p.205)
- • Contingent income tax liability of Rs. 1.61 lakhs relating to income tax matters(p.205)
- • Finance cost burden of Rs. 35.65 lakhs in just three months (Q1 FY2023), annually Rs. 123.50 lakhs in FY2022(p.204)
- • Working capital intensity with significant inventory holdings growing to Rs. 1,604.74 lakhs(p.199)
- • Volatility in supply and pricing of raw materials(p.217)
- • Competition from both organized and unorganized players(p.233)
- • Customer payment defaults and credit risk exposure(p.217)
- • Regulatory changes and legal uncertainties(p.217)
- • Macroeconomic headwinds and industry cyclicality(p.217)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| SAT Industries Limited | Promoter | 91.79% | 55.50% |
| SAT Invest Private Limited | Promoter Group | 8.21% | 4.96% |
| Sat Industries Limited | Corporate Promoter | 91.79% | 55.50% |
| Sat Invest Private Limited | Promoter Group | 8.21% | 4.96% |
| SAT Industries Limited | Promoter/Corporate Promoter/Holding Company | — | — |
| Sat Industries Limited | Promoter/Corporate Promoter | 91.79% | — |
| Sat Invest Private Limited | Promoter Group | 8.21% | — |
| Sat Industries Limited | Promoter/Promoter Group | 91.79% | — |
| Asad Daud | Promoter/Individual | — | — |
Leadership
Asad Daud · Managing Director
Murtaza Ali Moti · Chief Executive Officer
Lalit Kumar Bolia · Chief Financial Officer
Runel Saxena · Company Secretary and Compliance Officer
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.
Sah Polymers IPO FAQs
What is the lot size of Sah Polymers IPO?
The minimum lot size of Sah Polymers IPO is 230 shares. One lot costs ₹14,950 at the cut-off price.
When does Sah Polymers IPO open and close?
Sah Polymers IPO opened for subscription on 30 Dec 2022 and closed on 04 Jan 2023.
What is the listing date of Sah Polymers IPO?
Sah Polymers IPO listed on 12 Jan 2023.