Sanstar IPO oversubscribed hours after opening

19 Jul 2024 , 12:16 PM

Sanstar Limited, a leading pet foods ingredient provider, has launched its Initial Public Offering (IPO) today. The IPO will remain open for subscription until July 23, 2024. The company has set the price band for the IPO at ₹90 to ₹95 per equity share. Click here to subscribe the IPO.

IPO Subscription Status

In the first two hours of opening, Sanstar Limited’s IPO has already seen a strong response, being subscribed 1.46 times. Notably, the non-institutional investors have subscribed 2.52 times the allocated quota, while the retail portion has been subscribed 1.88 times.

Reservation for Investors

The allocation of shares in the IPO is structured as follows:

• Qualified Institutional Buyers (QIB): 50% of the issue
• Retail Investors: 35% of the issue
• Non-Institutional Investors: 15% of the issue

Use of Proceeds

Sanstar plans to utilize the net proceeds from the fresh issue for several key purposes:

1. Expansion of Dhule Facility: To enhance production capabilities and meet growing demand.
2. Debt Repayment: To improve the company’s financial health and reduce interest obligations.
3. General Corporate Purposes: To support overall business growth and operational efficiencies.

Company Overview

Sanstar is recognized as India’s fifth-largest manufacturer of maize-based specialty products and ingredients, with an impressive annual capacity of 363,000 tons per annum (TPA). The company specializes in converting maize into products used as thickening agents, stabilizers, sweeteners, and additives in food products. Additionally, these products serve as nutritional ingredients in animal nutrition products.

Key Segments

• Food Industry: This is Sanstar’s largest segment, contributing 58% to the company’s revenue.
• Global Presence: Sanstar has a significant international footprint, with exports accounting for 36% of its total revenue in FY24.