Sanstar Limited's IPO closes today, July 23, 2024

23 Jul 2024 , 11:37 AM

Sanstar Limited’s initial public offering (IPO), closing today, July 23, 2024, has garnered strong interest from investors. The IPO, valued at ₹510.15 Crore, has been oversubscribed 19.90 times.

At the time of writing on July 23, 2024 at 11:25 am on the final day of bidding, the retail portion of the IPO has been subscribed 15.74 times, and the non-institutional investors’ category has seen an impressive 54.42 times subscription. The Qualified Institutional Buyers (QIB) segment has received 1.29 times subscription.

Sanstar Limited’s IPO was open for public subscription starting July 19, with shares priced between ₹90 and ₹95. Retail investors must apply for a minimum of 150 shares, totaling ₹14,250 at the upper price band.

The allotment of shares is expected to be finalized on July 24, 2024, with the shares scheduled to list on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on July 26, 2024.

The IPO consists of a fresh issue of 4.18 Crore shares and an offer for sale (OFS) of 1.19 Crore shares. The total size of the IPO, at the upper price band, amounts to ₹510.15 Crore.

On July 18, prior to the IPO, Sanstar Limited secured ₹153 Crore from anchor investors. The company allocated 1.61 Crore equity shares to 13 funds at ₹95 per share, raising this amount.

The funds from the fresh issue will be used to finance the expansion of the Dhule facility (₹181.55 Crore), repay debt (₹100 Crore), and cover general corporate expenses.

Sanstar Limited is a significant manufacturer of plant-based specialty products and ingredient solutions in India, enhancing taste, texture, nutrients, and functionality in food products.

The company operates two manufacturing plants in Dhule, Maharashtra, and Kutch, Gujarat, with a combined capacity of 1,100 tonnes per day. It exports products to 49 countries and distributes them across 22 Indian states.

Financially, Sanstar Limited has shown robust growth, with revenue rising from ₹504.40 Crore in FY22 to ₹1,067.27 Crore in FY24, reflecting a compound annual growth rate (CAGR) of 45.46%. Its profit after tax increased from ₹15.92 Crore in FY22 to ₹66.77 Crore in FY24.

Pantomath Capital Advisors is managing the IPO, with the shares poised to be listed on the BSE and NSE, providing investors an opportunity to invest in the expanding plant-based specialty products sector.