Sah Polymers IPO: Issue subscribed 8.97 times; all portions fully booked

The initial public offering (IPO) of Sah Polymers was subscribed 8.97 times on the final day of bidding process. The initial share sale received bids for 5,03,31,590 shares against 56,10,000 shares on offer by 12:54 pm on Wednesday. The public issue started on December 30.

The quota meant for retail individual investors (RIIs) was subscribed 25.32 times, while the portion for non-institutional investors received 13.89 times subscription and qualified institutional buyers (QIBs) witnessed 1.06 times subscription.

The issue has a price band of Rs 61-65 and investors can bid for a minimum of one lot comprising 230 shares and in multiples of 230 shares thereafter.

The IPO consisted of a fresh issue of 1.02 crore shares.

Grey market premium

Market participants said grey market premium (GMP) was last seen at around Rs 5, down from Rs 8 earlier. It implied that the company may list at a premium of 7.69 per cent.

Swastika Investmart recommended giving this IPO a miss. "On the valuation front, the company has reported strong growth. The issue, however, has a PE value of 23.13, which is higher than its peers. It has a reliance on a small number of clients and the issue size is small. We recommend to 'Avoid' this IPO," it said.

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"The asking P/E (post issue) comes around 38x based on FY22 earnings which look priced aggressively. Also, the current sentiments in the primary market are subdued due to a spree of weak listings," Manan Doshi of UnlistedArena.com, dealing in unlisted & pre-IPO shares, told Business Today.

On the flip side, Marwadi Financial Services assigned a 'Subscribe' rating to the IPO.

"We assign a 'Subscribe' rating to this IPO as the company has a diversified product portfolio with a customer base across geographies and industries. The IPO is available at reasonable valuations considering the future growth potential of the company," it said.

The Udaipur-based firm provides tailored bulk packaging solutions to business-to-business producers in a variety of industries, including agro-pesticides, basic drugs, cement, chemicals, fertilisers, food products, textiles, ceramics, and steel.

Pantomath Capital Advisors is the manager to the offer. The shares are proposed to be listed on the BSE and NSE.