Shares of Sanstar will make their Dalal Street debut on today, that is Friday, July 26. The plant-based products maker has seen a decent correction in the grey market premium (GMP) but it is poised to deliver a healthy listing pop to the investors despite the recent volatility in the markets.
Ahead of its listing, shares of Sanstar were commanding a grey market premium (GMP) of 24 per share, suggesting a listing pop of around 25 per cent for the investors. However, the premium in the unofficial market stood around Rs 26 apiece about 24 hours earlier and Rs 36 when the allotment was announced.
Sanstar's issue appears to be priced aggressively when considering the FY24 earnings, said Amit Goel, Co-Founder & Chief Global Strategist at Pace 360 "We expect a listing at around Rs 125-130 per share, resulting in a listing gain of around 33. Post listing, we recommend investors should book profits," Goel suggested.
The IPO of Sanstar was open for bidding between July 19 and July 23. It had offered its shares in the price band of Rs 90-95 apiece with a lot size of 150 shares. Sanstar raised a total of Rs 510.15 crore from its follow-on offering, which was entirely a fresh share sale of up to 397.10 equity shares and an offer-for-sale up to 1.19 crore equity shares.
The issue of Sanstar was overall subscribed a total of 82.99 times. The quota for qualified institutional bidders (QIBs) was booked a solid 145.68 times The quota for non-institutional investors was subscribed a whopping 136.50. The portions reserved for retail investors saw bidding for only 24.23 times during the three-day bidding process.
Sanstar shares will debut on the bourses on Friday as the shares may get listed at a premium of around 32 per cent over the issue price, said Prathamesh Masdekar, Research Analyst at StoxBox. "We have a positive view of the company and advise the participants who have been allocated to the issue to hold the shares from a medium- to long-term perspective," he said.
Sanstar is a manufacturer of specialty plant-based products and ingredient solutions for food, pet food and other industrial products in India. Its 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.
Brokerage firms are mostly positive on the issue suggesting investors to subscribe to it for a long term. 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.