On Thursday, Sah Polymers shares were listed on the bourses at a solid premium of 30.77% over their issue price. The company’s shares debuted at Rs 85 on both the BSE and the NSE, compared to the issue price of Rs 65.
Despite a strong response to its initial public offering (IPO), the stock was unable to command a significant premium in the unofficial or grey market due to market sentiment.
A day before the listing, the stock was trading in the grey market at a premium of Rs 10 to its issue price.
The company’s public offering received a strong response from all types of investors, despite commanding higher valuations than its listed peers.
The company is valued at 38.3 times its adjusted earnings for FY22. In comparison, listed peers such as Rishi Techtex, Jumbo Bag, SMVD Poly Pack, EMMBI, and Commercial Syn Bags are trading at 6-25 times FY22 earnings.
Sah Polymers, founded in 1992, is a leading manufacturer and exporter of polypropylene woven bags and high-density polyethylene box bags. It also manufactures biaxially oriented polypropylene (BOPP) laminated bags and flexible intermediate bulk containers (FIBCs).
Agriculture product packaging, food packaging, geotechnical packaging, tourism and
transportation, daily necessities, and flood control products all use polypropylene woven bags. The apparel and clothing industries are the primary users of BOPP bags.
The company exports its products to 14 countries, including the United States, the United Kingdom, Australia, the United Arab Emirates, Africa, France, and Poland. Exports account for the majority of the company’s sales.
Exports accounted for 55.14% of the company’s total sales in FY22.
Sah polymer debuts on strong note, lists a 31% premium to share price