
Shares of Sanstar made a muted Dalal Street debut on Friday, which was less-than-expectations of the market participants. However, the stock saw a strong buying after listing, signaling the buying interest of the investors in the company at lower levels.
Sanstar shares were listed at a premium of around 15 per cent at Rs 109 on NSE, while the stock saw a listing at a premium of 12 per cent on BSE over the issue price of Rs 95 per share. However, the stock rose to Rs 127.68, hitting upper circuit of 20 per cent, and taking overall gains to 34.4 per cent above the issue price.
Majority of the analysts continue to remain positive on the company and suggest to hold the stock for a medium-to-long term. On the other hand, some of the experts suggest investors to book profits after decent profit during the maiden trading session.
Sanstar made a solid debut on the stock market, listing at Rs 109 per share, a 15 per cent above its issue price of Rs 95. While this performance is positive, it falls short of pre-listing expectations, influenced by the broader market volatility following the budget announcement, said Shivani Nyati, Head of Wealth at Swastika Investmart.
"Sanstar's listing, while not reaching the initial hype, is a positive development. The company's strong fundamentals and investor interest provide a solid foundation for future growth. Investors may hold their position at the issue price," she said.
The IPO of Sanstar could be subscribed between July 19 and July 23 as the company 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.
Sanstar made a strong debut in the bourses today, garnering a premium of 15 per cent on its issue price owing to the strong demand from the participants. Sanstar has established long-term relationships and serves over 525 customers, with 162 new customers during FY24, said Prathamesh Masdekar, Research Analyst at StoxBox.
"The company plans to expand its customer base by leveraging relationships with existing customers in India and globally while simultaneously pursuing opportunities to develop new relationships. Hence, we advise the market participants to hold the shares from a medium to long-term perspective," he said.
\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.
Despite markets being on a positive note, Sanstar listing was below expectations. Despite market upbeat mood we still continue to recommend allotted investors to book profits on listing day, said Prashanth Tapse, Senior VP Research at Mehta Equities. "We are not comfortable on the valuations which were slightly on the expensive side when compared to other listed peers," he said.
Sanstar is a manufacturer of specialty plant-based products and ingredient solutions for food, pet food and other industrial products in India. Pantomath Capital Advisors was the sole book running lead manager of the Sanstar IPO, while Link Intime India served as the registrar for the issue.
Sanstar shares listed at Rs 109 on NSE, but didn’t meet pre-listing expectations due to market volatility in the Indian markets, said Amit Goel, Co-Founder & Chief Global Strategist, Pace 360. "Post listing, we recommend that investors book profits in the short term. Long-term investors are advised to hold considering the strong fundamentals of the company," he adds.