The initial public offering (IPO) of Sanstar will open for bidding on Friday, July 19 and the company will be offering its shares in the fixed price band of Rs 90-95 apiece. Investors can apply for a minimum 150 equity shares and its multiples thereafter. The issue will close for bidding on Tuesday, July 23.
The IPO of Sanstar includes a fresh share sale of 4,18,00,000 equity shares and offer-for-sale (OFS) of 1,19,00,000 equity shares amounting to Rs 113.05 crore from its promoters and promoter group entities. At the upper end of the price band, the company will be raising a total of Rs 510.15 crore via IPO. Anchor book for the issue will open on Thursday, July 18.
Sanstar 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.
The net proceeds of the fresh issue shall be utilized towards 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. Proceeds from the OFS shall go to the selling shareholders.
The Ahmedabad-based 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. With an installed capacity of 3,63,000 tons per annum (1,100 tons per day), the company is the fifth largest manufacturer of corn-based specialty products and ingredients in India.
The company, which was founded in 1982, 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.
For the year ended on March 31, 2024, Sanstar reported a net profit of Rs 66.77 crore with a revenue of Rs 1,081.68 crore. The company's net profit came in at Rs 41.81 crore with a revenue of Rs 1,209.67 crore for the financial year 2022-23. The total market capitalization of Sanstar stands at Rs 1731.32 crore.
Sanstar has reserved 50 per cent of the issue for the qualified institutional bidders (QIBs), while non-institutional investors will have 15 per cent of the net offer. Remaining 35 per cent of the net offer shall be allocated towards retail investors for the issue.
Pantomath Capital Advisors is the sole book running lead manager of the Sanstar IPO, while Link Intime India is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE, with Friday, July 26 as the tentative date of listing.