Sanstar IPO: What Investors Must Know Before Applying?

• Sanstar IPO is a book-built issue of Rs 510.15 crore.
• This upcoming IPO bidding opens on July 19 and closes on July 23, 2024.
• Sanstar IPO price band is set at Rs 90 to Rs 95 per share.
• The Minimum investment required Rs 14,250.

Sanstar IPO: Synopsis

Sanstar IPO is open for subscription starting Tuesday, July 19, 2024 and closing on Thursday, July 23, 2024. The price of this upcoming IPO is decided at Rs 90 to Rs 95 per share. The minimum lot size for the retail category is 150 shares. The minimum lot size for small NII is 15 lots consisting of 2,250 shares. 

Meanwhile, the minimum lot for big non-institutional investors is 71 lots with 10,650 shares. The minimum investment required for retail category investors is Rs 14,250 (95 x 150 shares). 

However, for small non-institutional investors, the minimum investment amount required is Rs 2,13,750 (95 x 2,250 shares); for big non-institutional investors, it is Rs 10,11,750 (95 x 10,650 shares). 

Sanstar IPO is a book-built issue of Rs 510.15 crores. This issue is a combination of fresh issue and offer-for-sale. The fresh issue size of 4.18 crore equity shares amounting to Rs 397.10 crores. The offer for sale is of Rs 1.19 crores shares amounting to Rs 113.05 crores. The allotment for this IPO is expected to be finalised on Wednesday, July 24, 2024. 

Sanstar Limited's IPO will be listed on both the exchanges BSE and NSE, and the listing date is fixed for Friday, July 26, 2024. Pantomath Capital Advisors Private Limited is the book-running lead manager of Sanstar Limited. Link Intime India Limited is the registrar for this new IPO.

Also Read | Macobs Technologies IPO: Read Macobs IPO in Detail

Sanstar IPO: About Company

Sanstar Limited was founded in 1982, manufactures specialty plant-based products and ingredient solutions for food, pet food and other industrial applications in India. Sanstar 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. 

The company’s products are used in  food products as - ingredients, thickeners, stabilisers, sweeteners, emulsifiers, and additives. Pet food products- as nutritional ingredients. Other industrial products- as disintegrants, excipients, supplements, coating agents, binders, smoothing and flattering agents, and refining agents. 

The company has two manufacturing facilities covering a total area of 10.68 million square feet at Dhule in the state of Maharashtra and Kutch in the state of Gujarat. The company exports its products to companies in 49 countries including Asia, Africa, the Middle East, America, Europe and Oceania. The company also has a pan-India presence where its products are sold in 22 states.

Sanstar IPO: Objectives

The funds will be utilised for funding the capital expenditure requirements for the expansion of Dhule Factory. Also for the repayment of certain borrowings availed by the company, general corporate purposes.

Sanstar IPO: Other Important Details

Sanstar IPO: Time-Table 

Sanstar Limited: Financial Metrics  (Amt in Rs Crore)

Sanstar reported revenue of Rs 1,081.68 crore and net profit of Rs 66.77 crore for the period ending 31 March 2024. Between the FY ending 31 March 2024 and 31 March 2023, the company’s revenue decreased by 10.58%, and PAT increased by 59.71%.

Lot Size of Sanstar IPO

Promoters of Sanstar Limited and Their Holdings

The promoters of Sanstar Limited are Gouthamchand Sohanlal Chowdhary, Sambhav Gautam Chowdhary, and Shreyans Gautam Chowdhary. The promoters shareholdings before IPO is 99.77% but after the IPO the shareholdings will be 70.37%.

Sanstar IPO: Strength of the Company

·   Sanstar manufactures specialty plant-based products and ingredient solutions.

·   The company showed slow and steady profit growth. 

·   Sanstar Debt to equity ratio is 0.50, ROE is 30.92%, ROCE is 24.43% and P/V ratio is 6.18.

FAQs

1. What are the details of Sanstar Limited IPO 2024?

Sanstar IPO is a book-built issue of Rs 510.15 crores. This issue is a combination of fresh issue and offer-for-sale. The fresh issue size of Rs 4.18 crore equity shares amounting to Rs 397.10 crores. The offer for sale is of Rs 1.19 crores shares amounting to Rs 113.05 crores.

2. Who are the lead managers for the Sanstar Limited IPO?

Pantomath Capital Advisors Private Limited .are appointed as the lead managers for this IPO.

3. What is the role of Link Intime India in this IPO?

Link Intime India Limited is the registrar for Sanstar Limited, handling the IPO's administrative aspects.

4. How can I apply for the Sanstar Limited IPO?

The public subscription of this IPO will open on July 19, 2024. Click here to continue the application process.

5. How will the net proceeds from the IPO be utilised?

The company motive is to utilise the net proceeds for the prepayment and repayment of certain outstanding borrowings of the company. Other than this general corporate purposes will also be met.

6. How can I check the allotment status of the IPO?

Investors can check out the allotment status of the Sanstar Limited IPO 2024 by visiting here.

Also Read | Kataria Industries IPO: Important Details to Check Before Investing