Sanstar IPO Launching on July 19 with Attractive Price Band of ₹90-95 per Share

Sanstar Limited is launching its IPO with a price range set between ₹90 to ₹95 per share, each having a face value of ₹2. The IPO subscription opens on Friday, July 19, and closes on Tuesday, July 23. Allocation to anchor investors is set for Thursday, July 18.

Details of the Sanstar IPO:

• The floor price is 45 times the face value, and the cap price is 47.50 times the face value.
• Each lot of the IPO consists of 150 shares, with additional purchases in multiples of 150 shares.
• 50% of the shares are reserved for qualified institutional buyers (QIB), 15% for non-institutional investors (NII), and 35% for retail investors.

Important Dates:

• Basis of share allotment will be finalized on Wednesday, July 24.
• Refunds will be processed on Thursday, July 25, and shares will be credited to demat accounts on the same day.
• Sanstar shares are expected to be listed on BSE and NSE on Friday, July 26.

About Sanstar

Based in Ahmedabad, Sanstar produces a range of products such as dried glucose solids, liquid glucose, maltodextrin, dextrose monohydrate, and both native and modified starches from maize. They also produce co-products like fiber, gluten, germs, and maize steep liquor. Their products improve the flavor, texture, and nutritional value of food and are used in various food items like baked goods, confections, soups, sauces, and desserts. Sanstar also supplies industrial products and animal nutrition products.

Sanstar has two production plants in Dhule, Maharashtra, and Kutch, Gujarat, covering a combined area of 10.68 million square feet (over 245 acres). They operate in India and export to 49 countries across Asia, Africa, the Middle East, the Americas, Europe, and Oceania.

Financial Performance

According to the company’s restated consolidated financial statements:

• Revenue from operations grew at a CAGR of 45.46% from ₹504.40 crore in fiscal 2022 to ₹1,067.27 crore in fiscal 2024.
• Profit after tax increased at a CAGR of 104.79% from ₹15.92 crore in fiscal 2022 to ₹66.77 crore in fiscal 2024.

IPO Fundraising Details

Sanstar aims to raise ₹510.15 crore through the IPO, which includes:

• An offer-for-sale (OFS) of 1.19 crore shares valued at ₹113.05 crore by the promoters.
• A fresh issue of 4.18 crore equity shares valued at ₹397.1 crore by the company.

Promoters selling shares via OFS include:

• Richa Sambhav and Samiksha Shreyans Chowdhary, each selling 33 lakh shares.
• Rani Gouthamchand Chowdhary selling 38 lakh shares.
• Gouthamchand Sohanlal Chowdhary, Sambhav Gautam Chowdhary, and Shreyans Gautam Chowdhary, each selling 5 lakh shares.

Use of IPO Proceeds

The funds raised will be used for:

• Expanding the Dhule Facility.
• Repaying and/or prepaying some of the company’s loans.
• General corporate purposes.

Pantomath Capital Advisors Private Ltd is the sole book-running lead manager for the IPO, and Link Intime India Private Ltd is the registrar for the offer.