The grey market premium (GMP) of Sah Polymers has crashed 70 per cent in the grey market this week, analysts who track the unofficial market suggested. Sah Polymers was commanding a premium of Rs 8-10 apiece in the grey market on Monday, which suggested a premium of 15 per cent. Today, it is commanding a premium of mere Rs 3 per share, suggesting the issue has eroded two-third of its GMP this week.
Manish Khanna, Co-Founder of Unlisted Assets suggested Sah Polymers’ GMP at Rs 3. “Based on the prevailing trend, the company is likely to list at Rs 68, suggesting gains of about 5 per cent,” he said.
Shares of Sah Polymers are likely to list on bourses on January 12. The softness in Sah Polymers’ GMP trend is hinting at another disappointing listing on Dalal street.
The listing prospects of the company have been jolted by the weakness in the listed markets and not-so-exception fundamentals of the company, said analysts.
The company’s issue was small in size, which inflated the subscription status, said Abhay Doshi, co-founder of UnlistedArena. “There was nothing exceptional in its business model or balance sheet and the area of operation is also limited,” he said.
The issue was oversubscribed after the surprise strong Radiant Cash Management listing. Since the broader markets have seen a decent correction, they are denting the prospects for the debutants, he said.
The initial public offering (IPO) of Sah Polymers was opened for subscription between December 30 and January 3.The company raised Rs 66.3 crore via its initial stake sale that was sold in the Rs 61-65 range.
The issue was overall subscribed 17.46 times, led by retail investors and non-institutional buyers, whose portion was booked 39.78 times and 32.69 times, respectively. The quota for qualified institutional bidders was booked 2.4 times.
Sah Polymers is primarily engaged in manufacturing and selling of polypropylene and high-density polyethylene (HDPE) FIBC Bags, woven sacks, HDPE/PP woven fabrics and woven polymer.