Sanstar IPO Fully Subscribed on Day 1

19 Jul 2024 , 04:14 PM

Sanstar Ltd’s ₹510 crore initial public offering (IPO) sold out in two hours on the first day of the bidding process on Friday, thanks to strong demand from retail and NII investors.

At 4:10 p.m., the public issue had 3.43x subscribers. The retail sector was subscribed 3.73 times, while the NII section received 7.26 times more than alloted bids. The qualified institutional buyers section was subscribed 2%.

The company has set a price band of ₹90-95 per share, with buyers able to bid for 150 shares in one lot. Approximately half of the IPO is allocated for qualified institutional buyers (QIB), 35% for retail investors, and the remaining 15% for non-institutional investors.

The business intends to use the net funds from the new offering to develop its Dhule plant, repay debt, and for other general corporate reasons.

Sanstar is India’s leading maker of plant-based specialised products and ingredient solutions for food, animal nutrition, and other industrial purposes. It manufactures liquid glucose, dried glucose solids, maltodextrin powder, dextrose monohydrate, native maize starches, modified maize starches, and co-products such as germs, gluten, fibre, and enhanced protein, among others.

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