Sanstar Limited gets SEBI approval for IPO

7 May 2024 , 02:28 PM

Sanstar Limited, a plant-based specialty products firm based in Ahmedabad, has received approval from the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO), as per information disclosed on Tuesday.

The proposed IPO comprises a combination of a fresh issuance of four crore equity shares and an offer for sale (OFS) component of up to 80 lakh shares by its promoters and promoter group selling shareholders, as outlined in the draft red herring prospectus (DRHP).

The company may consider a pre-IPO placement of up to 40 lakh equity shares, which would result in a reduction of the fresh issue size if completed.

Sanstar Limited filed its IPO documents with SEBI in January 2024 and received the market regulator’s observations on April 30, indicating consent to proceed with the public issue.

The proceeds from the fresh issue are intended to fund the capital expenditure requirement for expanding the company’s Dhule facility, clearing debt, and general corporate purposes.

Sanstar is a prominent manufacturer of plant-based speciality products and ingredient solutions in India, offering ingredients, thickening agents, stabilizers, sweeteners, and other food-related products that enhance taste, texture, and nutritional value. The company operates two manufacturing facilities, located in Dhule, Maharashtra, and Kutch, Gujarat, with a combined installed capacity of 1,100 tonnes per day.

The equity shares of Sanstar Limited are expected to be listed on both the BSE and the National Stock Exchange (NSE), with Pantomath Capital Advisors serving as the book-running lead manager for the issue.