Udaipur-based Sah Polymers, known for manufacturing of polypropylene (PP) and high density polyethylene (HDPE) FIBC bags, woven sacks, HDPE/PP woven fabrics and woven polymer-based products, has filed preliminary papers with the capital markets regulator for an initial public offering (IPO).
As per the draft papers, the IPO comprises fresh issuance of 1.02 crore shares and Rs. 8.45 crore from the proceeds will be used for setting up a facility to manufacture new variant of flexible intermediate bulk containers (FIBC).
As of now, the company has facility of 3,960 million tonnes per annum capacity at Udaipur, and presence in six states and one union territory. It exports mainly to Africa, Middle East, Europe, US and Australia.
The IPO funds will also be used to repay debts (Rs. 16.66 crore), fulfil its working capital requirements (Rs. 14.96 crore) and general corporate purposes.
The company has recorded a consolidated profit of Rs. 4.32 crore (proforma basis) on revenue of Rs. 64.3 crore for the nine months ended December 2021, while for the financial year 2020-21 its profit stood at Rs. 1.33 crore on revenue of Rs. 68.34 crore.
