Shah Polymers IPO: GMP, other key details to know before subscription opens

 

• Shah Polymers' IPO will be a fresh issue of 1,02,00,000 equity shares with no Offer for Sale (OFS) component 

The initial public offer (IPO) of polymers maker Sah Polymers will open for subscription this week on Friday, December 30, 2022, and close on January 4, 2023. The company has fixed a price band of ₹61 to ₹65 per share for this. issue. Bidding for anchor investors will open on Thursday, December 29, 2022. 

According to market observers, shares of Shah Polymers are commanding a premium of ₹5 today in the gray market. The shares of the company are expected to be listed on the leading stock exchanges BSE and NSE on January 12, 2023. 

Shah Polymers' IPO will be a fresh issue of 1,02,00,000 equity shares with no Offer for Sale (OFS) component. Sat Industries, which is the promoter, holds 91.79% stake in the company. 75% of the issue is reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs) and the remaining 10% for retail investors. 

The company proposes to utilize the net proceeds for financing the following items for setting up a new manufacturing facility to manufacture new types of Flexible Intermediate Bulk Containers (FIBC), repayment/prepayment of certain secured and unsecured borrowings received in whole or in part. Company and subsidiary, financing the working capital requirements of the company and for general corporate purposes. 

Pantomath Capital Advisors is the Merchant Banker to the Initial Share Sale while Link Intime India Private Limited is the Registrar to the Public Offer. 

The Udaipur based company is primarily engaged in manufacturing and sales of Polypropylene (PP)/High Density Polyethene (HDPE) FIBC bags, woven sacks, HDPE/PP woven fabric and woven polymer based products.

The company has presence in 6 states and 1 union territory for the domestic market and internationally in 6 regions namely Africa, Middle East, Europe, USA, Australia and Caribbean. In FY22, Shah Polymers reported a net profit of ₹4 crore, while its revenue stood at ₹80.5 crore.