IPO Corner: Sanstar Limited

Sanstar is a book built issue of Rs 510.15 crores. The issue is a combination of fresh issue of 4.18 crore shares aggregating to Rs 397.10 crores and offer for sale of 1.19 crore shares aggregating to Rs 113.05 crores. IPO opens for subscription on July 19, 2024 and closes on July 23, 2024. The allotment for the Sanstar IPO is expected to be finalized on Wednesday, July 24, 2024. Sanstar IPO will list on BSE, NSE with tentative listing date fixed as Friday, July 26, 2024. Sanstar IPO price band is set at Rs 90 to Rs 95 per share. The minimum lot size for an application is 150 Shares. The minimum amount of investment required by retail investors is Rs 14,250. Sanstar IPO raised Rs 153.05 crore from anchor investors.

• Issue Opens: July 19, 2024
• Issue Closes: July 23, 2024
• Face Value: Rs 2 each
• Price Band: Rs 90 to Rs 95 per share
• Lot Size: 150 Shares
• Listing On: BSE NSE
• Issue Size: 53,700,000 equity shares
• Issue Type: Book Built Route
• Basis of Allotment: July 24, 2024
• Initiation of Refund: July 25, 2024
• Credit to Demat: July 25, 2024
• Listing Date: July 26, 2024

The Net Proceeds of the Fresh Issue, i.e., Gross Proceeds of the Fresh Issue less the offer expenses apportioned to the Company are proposed to be utilized in the following manner: Funding the capital expenditure requirement for the expansion of the Dhule Facility; Repayment and/or pre-payment, in part or full, of certain borrowings availed by the Company, and; General Corporate Purposes.

Founded in 1982, Sanstar Limited manufactures specialty plant-based products and ingredient solutions for food, pet food and other industrial applications in India. The company’s product portfolio includes liquid glucose, dried glucose solids, maltodextrin powder, dextrose monohydrate, native maize starches, modified maize starches, and by-products such as germ, gluten, fiber and fortified proteins. These products are used in: Food products: as ingredients, thickeners, stabilizers, sweeteners, emulsifiers, and additives (including in baked goods, confectionery, pasta, soups, ketchup, sauces, creams and desserts); Pet food products: as nutritional ingredients; and other industrial products: as disintegrants.