Mumbai, December 27, 2022.

Sah Polymers Limited, primarily engaged in manufacturing and selling of Polypropylene (PP)/ High Density Polyethylene (HDPE) Flexible Intermediate Bulk Containers (FIBC) Bags, Woven Sacks, HDPE/PP woven fabrics, woven polymer based products has fixed the price band at Rs.61to Rs.65per Equity Share for its maiden public offer. The initial public offering (“IPO” or “Offer”) of the Company will open on Friday, 30^th December, 2022, for subscription and closes on Wednesday, 4^th January, 2023. Investors can bid for a minimum of 230 Equity Shares and in multiples of 230 Equity Shares thereafter.

The public issue with a face value of Rs 10 per equity share consists of a fresh issue of equity shares ofupto102,00,000 equity shares, with no offer for sale component.

Sah Polymers is led by AsadDaud and professionally backed by Hakim Sadiq Ali Tidiwala and Murtaza Ali Moti with a combined expertise of approximately 20 years in the FIBC packaging sector. The Company provides tailored bulk packaging solutions to business-to-business ("B2B") producers in a variety of industries, including agro pesticides, basic drugs, cement, chemicals, fertilisers, food products, textiles, ceramics, and steel.

The Company exports its products to 14 countries including USA, UK, Australia, UAE, Africa, France and Poland. Majority of the sales of the Company comes from exports. For the 3 months ended June 30, 2022 and for Fiscals 2022, the Company’s revenue from exports contributed 57.61% and 55.14%, respectively, of total revenues from operations.

Return on net-worth is 16.42% and PAT margin for the year ended 2022 stood at 5.39%. The Company’s sales have grown from Rs. 49.90 crores in FY  2020 to Rs. 81.23 crores in FY 22. The sales for the quarter ended June 2022 stood at Rs.27.59 crores. Thus the sales CAGR for last three completed years is 27.6%. Similarly, the post-tax profits, i.e., PAT of the Company has increased with CAGR of 284% over last three years.

The Company operates at 85% to 92% of the installed capacity and therefore going for further capex. Total capex is Rs. 33.81 crores, out of which the Company has taken bridge loan of Rs. 15.71 crores from the holding company and deployed while the IPO approvals came so that the overall timeframe of the installation is not delayed. The new Project is estimated to commence commercial operations within this year 2022-23 itself. Out of the current manufacturing facility (located at Mewar Industrial Area, Madri, Udaipur, Rajasthan) the Company manufactures a diverse range of HDPE/PP Woven Sacks and FIBC products with filling capacity of upto 500 KGs per bag/sack. The Company intends to manufacture new variant of FIBC products with filling capacities of upto 2,500 KGs out of the new Unit. The installed capacity of the new Unit is of 3,960 MT per annum, which is equivalent to current capacity therefore the company’s capacity will double upon commissioning of new plant.

Kanpur Plastipack Ltd., Rishi Techtex Ltd., Gopala Polyplast Ltd., Jumbo Bag Ltd., SMVD Polypack Ltd., EMMBI Industries Ltd., and Commercial Syn. Bags Ltd. are competitors; however, the peers are not directly comparable due to the type, range of products/services, turnover, and size of the firm. As disclosed in the offer is given below:

(Rs.in lakhs) (As on March 31, 2022)

The total equity issued before IPO is 15.59 crores and along with reserves the net-worth is Rs 27.74 crores as at the end of the 30th June 2022. Post IPO, the Company’s net-worth shall stand at Rs 92.95 crores. The Book value post IPO would be 36 plus the profit surplus for the period.

The Issue is being made in terms of Rule 19(2)(b) of the SCRR through the Book Building Process in accordance with Regulation 6(2) of the SEBI ICDR Regulations wherein not less than 75% of the Issue shall be Allotted to QIBs on a proportionate basis, provided that the Company in consultation with the BRLM, may allocate up to 60% of the QIB Category to Anchor Investors, on a discretionary basis in accordance with the SEBI ICDR Regulations, of which one-third shall be reserved for domestic Mutual Funds, subject to valid Bids being received from them at or above the price at which allocation is made to Anchor Investors. In case of under-subscription or non-allocation in the Anchor Investor Portion, the remaining Equity Shares will be added back to the QIB Category (other than Anchor Investor Portion). 5% of the QIB Category shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Category shall be available for allocation on a proportionate basis to all QIBs (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Issue Price. If at least 75% of the Issue cannot be Allotted to QIBs, the Bid Amounts received by the Company shall be refunded. Further, not more than 15% of the Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not more than 10% of the Issue shall be available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Issue Price. Further, the allocation to each Non-Institutional Investor shall not be less than Rs. 200,000, subject to availability of Equity Shares in the Non-Institutional Portion, and the remaining Equity Shares, if any, shall be allocated on a proportionate basis, subject to valid Bids being received at or above the Issue Price, in accordance with the SEBI ICDR Regulations. Further, (a) one third of the portion available to Non-Institutional Investors shall be reserved for applicants with application size of more than Rs. 200,000 and up to Rs. 1,000,000; and (b) two third of the portion available to Non-Institutional Investors shall be reserved for applicants with application size of more than Rs. 1,000,000 , provided that the unsubscribed portion in either of the sub-categories specified in clauses (a) or (b), may be allocated to applicants in the other sub-category of Non-Institutional Investors. Under-subscription, if any, in any category, except the QIB Category, would be allowed to be met with spill-over from any other category or categories, as applicable, at the discretion of the Company in consultation with the BRLM and the Designated Stock Exchange, subject to applicable laws.

The Issue comprises of only fresh issue of up to 1,02,00,000 Equity Shares for cash at upper price band of Rs. 65/- per Equity Share (including a premium of Rs. 55/- per Equity Share, aggregating up to Rs. 66 crores. The Issue shall constitute 39% of the post-Issue paid-up Equity share capital of the Company. Notably, the issue involves all fresh issue without any offer for sale component. Out of the issue proceeds, Rs. 8.18 crores shall be utilized for capex for setting up of new manufacturing unit; Rs. 19.66 shall be towards repayment of debt, Rs. 14.95 crores for working capital and balance for general corporate purposes.  The debt repayment is towards the bridge loan from the holding company which was deployed in the capex.

The Group has made several acquisitions from time to time. The Company carefully evaluate and pursue accretive acquisitions. Given the breadth of its product offering, and the scale of manufacturing and customer network, the Company is positioned to grow inorganically within its industry. The Company has gained competitive advantage due to its recent acquisition of FibcorpPolyweave Private Limited on January 5, 2022, which will leverage to generate incremental synergies. The Company intends to apply a selective and disciplined acquisition strategy that focuses on enhancing scale, product diversity and geographic reach, while bolstering financial performance through synergies and additional cash generation.

Pantomath Capital Advisors Private Limited is the sole book running lead manager to the issue and Link Intime India Private Limited is the registrar to the offer.The equity shares are proposed to be listed on the Main Board of NSE and BSE.