The bidding for Sah Polymers’ initial public offering (IPO) is set to conclude today. The company received 5.35 subscriptions on day four of its subscription on January 3. Against the 56,10,000 shares that were up for grabs in the initial share sale, bids were made for 2,99,95,450 shares. The bidding for Sah Polymers IPO began on December 30, 2022, with a price band of Rs 61 to 65. Investors may bid in the IPO for a minimum of 230 shares and its multiples thereafter. A retail investor can bid for a maximum of 2990 shares or 13 lots.
The Sah Polymers’ IPO is expected to make a market debut on the Indian top stock exchanges BSE and NSE on January 12.
On Tuesday, the quota intended to be offered to retail individual investors (RIIs) obtained a 16.53 times subscription. On the other hand, 1.05 times subscription for the QIBs and 6.49 times subscription for the non-institutional investors’ section were also recorded.
The company’s shares were trading with a grey market premium of Rs 15 on Wednesday, January 4, reported IPO Watch. This means, that the grey market traders expect Sah Polymers’ shares to get a listing of Rs 80 (Rs 65 +15). However, investors must note that grey market trends are highly speculative in nature and may not be a reflection of reality. Any investment decision, in an IPO, should be made based on thorough research and an understanding of the company’s fundamentals. Following GMP trends and tips may lead to losses.
Headquartered in Udaipur, Sah Polymers, manufactures and sells woven sacks, HDPE/PP woven textiles and polypropylene (PP)/high-density polyethene (HDPE) FIBC bags. For the domestic market, the company is present in six states and one union territory. Internationally, the company has operations in six regions, including the Caribbean, Europe, the USA, the Middle East, Australia, and Africa.
The company plans to use the proceeds from the Rs 66.3 crore IPO to fund the establishment of a new manufacturing facility to produce a new variant of Flexible Intermediate Bulk Containers (FIBC), repaying/prepaying certain secured and unsecured borrowings that the company and the subsidiary company have taken out in full or in part, covering the company’s working capital needs, and general corporate purposes.
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