Sanstar IPO Summary
Mark your calendars! Sanstar Limited IPO is opening for bids this Friday, July 19th and closing on Tuesday, July 23rd. The price band per share is set between ₹90 and ₹95 per equity share of the face value of ₹2. Just a heads up, you’ll need to invest in multiples of 150 shares, with a minimum of 150 shares for ₹14,250 and in multiples of 150 equity shares thereafter. Looking to get in early? Anchor investors can bid on Thursday, July 18th. The floor price is 45 times the face value of the equity shares and the cap price is 47.50 times the face value of the equity share.
Sanstar IPO GMP, Grey Market Premium 2024
Sanstar IPO GMP as of today is 40. Stay tuned for the latest IPO GMP numbers of Sanstar IPO.
| Sanstar IPO GMP is as on 18 July 2024. | 50 |
| Sanstar IPO GMP is as on 19 July 2024. | 42 |
| Sanstar IPO GMP is as on 20 July 2024. | 40 |
| Sanstar IPO GMP is as on 21 July 2024. | 40 |
| Sanstar IPO GMP is as on 22 July 2024. | 40 |
| Sanstar IPO GMP is as on 23 July 2024. | – |
Sanstar Limited IPO subscription status
As 22 July 2024, 5:00 PM, the book build issue had been booked 13.48 times, the retail portion of the public offer had been booked 12.15 times, and the NII segment had been subscribed 32.85 times and the Qualified Institutional Buyer segment has been subscribed 1.29 times. subscription rate are good to invest. still rate maybe grow to 25x.
Sanstar IPO Quota Allocation
Sanstar’s IPO offering will be distributed as follows:
- Up to 50% of the shares will be allocated to Qualified Institutional Buyers (QIBs). These are institutional investors such as banks, mutual funds, and insurance companies.
- A minimum of 15% of the shares will be reserved for Non-Institutional Investors (NII). These typically include high-net-worth individuals (HNIs) or corporate bodies investing more than ₹2 lakh.
- At least 35% of the offering will be available for retail investors. These are individual investors applying for shares with a total value of less than ₹2 lakh.
Also Read: Understanding IPO (Initial Public Offering) and Its Key Benefits
Sanstar IPO Share Allotment and Listing
Subject to regulatory approvals, the allotment of shares for the Sanstar IPO is expected to be finalized on Wednesday, July 24th. Following this, the company will initiate refunds for unsuccessful applicants on Thursday, July 25th. If your application is successful, the shares are expected to be credited to your demat account on the same day, July 25th, after the refunds are processed. Sanstar IPO listing on the BSE and NSE is tentatively scheduled for Friday, July 26th.
About Sanstar Limited: A Leading Producer of Plant-Based Specialty Products
Sanstar Limited is a prominent manufacturer of plant-based specialty products and ingredient solutions catering to the food, animal nutrition, and industrial sectors. Their diverse product portfolio encompasses:
- Carbohydrates: Liquid glucose, dried glucose solids, maltodextrin powder, dextrose monohydrate, native and modified maize starches.
- Co-products: Germs, gluten, fiber, and protein.
Sanstar operates two strategically located manufacturing facilities in Dhule, Maharashtra and Kutch, Gujarat. They leverage an in-house research and development (R&D) team to create innovative solutions like san-o-gel pre-gelatinized starch and san-o-mould for specific industries. Maize serves as the primary raw material, complemented by other consumables and chemicals used in their manufacturing processes.
Sanstar Limited’s Product Applications
Sanstar’s unique product offerings enhance the flavor, texture, and nutritional value of various food products. These specialty ingredients find applications in:
- Food: Baked goods, confections, pastas, soups, ketchups, sauces, creams, and desserts (as thickeners, stabilizers, sweeteners, and emulsifiers).
- Industrial: Disintegrants, excipients, supplements, coating agents, binders, smoothing and flattening agents, and finishing agents.
- Animal Nutrition: Nutritional components.
Global Reach and Market Presence of Sanstar Limited.
Sanstar boasts a robust manufacturing footprint with a combined facility area exceeding 10.68 million square feet (over 245 acres) across Dhule and Kutch. Their strong presence extends beyond India, reaching 49 countries across Asia, Africa, the Middle East, the Americas, Europe, and Oceania. Within India, Sanstar supplies its products to a well-established network covering 22 states.
Sanstar Limited’s Industry Benchmarking
As per the red herring prospectus (RHP), Sanstar’s listed peers include Gujarat Ambuja Exports Ltd (P/E of 18.65), Gulshan Polyols Ltd (P/E of 73.31), and Sukhjit Starch and Chemicals Ltd (P/E of 15.01).
Sanstar Limited Profit Growth
Based on its restated consolidated financial statements, Sanstar’s revenue from operations grew at a compound annual growth rate (CAGR) of 45.46% from ₹504.40 crore in fiscal 2022 to ₹1,067.27 crore in fiscal 2024. Meanwhile, their profit after tax increased at a CAGR of 104.79% from ₹15.92 crore in fiscal 2022 to ₹66.77 crore in fiscal 2024.
Sanstar Limited IPO (Initial Public Offering) Full Details
Offering Details
Sanstar Limited is pleased to announce its forthcoming Initial Public Offering (IPO) with the objective of raising ₹510.15 crore. The offering will be structured as follows:
- Fresh Issue: The company will issue new equity shares to the value of ₹397.1 crore.
- Offer for Sale (OFS): Promoters of Sanstar Limited will be offering existing shares for sale, with a total value of ₹113.05 crore. The specific breakdown of shares offered by promoters is as follows:
- Richa Sambhav and Samiksha Shreyans Chowdhary: 33 lakh shares each.
- Rani Gouthamchand Chowdhary: 38 lakh shares.
- Gouthamchand Sohanlal Chowdhary, Sambhav Gautam Chowdhary, and Shreyans Gautam Chowdhary: 5 lakh shares each.
Utilization of Proceeds
The net proceeds from the fresh issue of shares will be primarily directed towards:
- Capital Expenditure: Funding the expansion of the Dhule Facility.
- Debt Repayment: Utilizing the proceeds to repay or prepay a portion of the company’s outstanding borrowings.
- General Corporate Purposes: The remaining funds will be allocated for general corporate purposes as deemed necessary by the company’s management.
Management of the Offering
Pantomath Capital Advisors Private Ltd will serve as the sole book running lead manager for the IPO. Link Intime India Private Ltd has been appointed as the registrar for the offering.
Also Read: How to Analyze an IPO.
Sanstar Limited’s Pros & Cons
1. Pros
- As of FY24, Sanstar Limited has a presence in 22 states of India and has exported its products to 49 countries across Asia, Africa, the Middle East, the Americas, Europe, and Oceania.
- The company’s Dhule and Kutch units hold ISO 9001:2015 certification for quality management systems, while the Dhule unit holds the FSSAI’s FSSC 22000:2018 certification too.
- The company’s profit after tax (PAT) has increased steadily over the years, from Rs 15.92 crore in FY22 to Rs 41.80 crore in FY23 to Rs 66.77 crore in FY24.
- Sanstar Limited has two manufacturing facilities. These are located in two different states – Gujarat and Maharashtra. In case of any negative developments in one state, this diversification of its manufacturing facilities is a positive for the company’s business.
2. Cons
- Sanstar is currently involved in several legal proceedings. Any negative judgements in these cases could hurt the company’s business prospects.
- The company’s products are used by specific industries. Any reduction in the demand for these products from such industries could result in a loss of business and profits for Sanstar.
- Sanstar uses maize as the primary raw material for its products. However, maize is experiencing increased demand from feed manufacturers, ethanol manufacturers, and food and beverage industries. This could strain the supply of maize, causing problems for Sanstar to meet its commitments to clients.
- As of March 31, 2024, the company had borrowings of Rs 127.64 crore. Any failure to service or repay these borrowings on time can hurt the company’s business operations and financial status.
- Sanstar is dependent on a limited number of local farmers for the supply of raw materials for its manufacturing units. Any disruption in supplies can hit the company’s business.
- In fiscal years 2024, 2023, and 2022, the western region of India accounted for Rs 504.20 crore (70.45%), Rs 663.43 crore (75.14%), and Rs 410.34 crore (82.69%) of total revenues. Any disruption in business from this concentrated geographical area could hurt the company’s business.
Frequently Asked Questions
Q. What is the Bidding Start date of Sanstar Limited IPO?
A. Sanstar IPO’s Bidding Start date is Friday, July 19th 2024.
Q. What is the Bidding End date of Sanstar Limited IPO?
A. Sanstar IPO’s Bidding End date is Tuesday, July 23rd 2024.
Q. What is the price band of Sanstar Limited IPO?
A. Sanstar IPO’s Price band is set to 90 to 95 per equity shares.
Q. What is the Lot Size of Sanstar Limited IPO?
A. Sanstar IPO’s Lot Size is 150 Shares and multiple of 150 shares thereafter.
Q. What is the Share allotment date of Sanstar Limited IPO?
A. Sanstar IPO’s Shares allotment date is Wednesday, July 24th 2024.
Q. What is the Listing date of Sanstar Limited IPO?
A. Sanstar IPO’s Listing date is Friday, July 26th 2024.
Q. What is the Sanstar Limited IPO GMP Today?
A. Sanstar IPO GMP is +50 as on Thursday, July 18th 2024.
Disclaimer
The information provided in this article about the Sanstar Limited IPO is for informational purposes only and does not constitute financial advice. Finance Gurukul does not recommend investing in any specific securities or investment strategies. It is important to conduct your own research and due diligence, and to consult with a qualified financial advisor before making any investment decisions.
Investing in the stock market involves inherent risks, and investors may lose some or all of their invested capital. Past performance is not necessarily indicative of future results.
