Sanstar IPO Debuts Tomorrow: How a Record 83x Subscription and Rising GMP Signal a Strong Start

Sanstar’s IPO is scheduled to start trading on Friday, July 26. The allotment process for the IPO has been completed, and shares will be credited to demat accounts today, July 25. The IPO received a massive response, with a subscription rate of 82.99 times on the third day.

For those who didn’t get shares, refunds will begin today. Investors who were allotted shares will see them in their demat accounts by the end of the day.

Shivani Nyati from Swastika Investmart Ltd. mentioned that Sanstar Ltd., a leading producer of maize-based specialty products, is about to go public. The IPO saw strong interest, as indicated by its high subscription rate and a grey market premium (GMP) of ₹27, which is 28.42% above the IPO price.

Prashanth Tapse from Mehta Equities noted that despite slightly high valuations, Sanstar attracted a lot of interest from investors, showing confidence in its potential.

The GMP today suggests a positive listing, with shares trading at a premium of ₹27 over the IPO price. This indicates a likely listing price of around ₹122 per share, compared to the IPO price of ₹95.

Sanstar IPO Overview:

• Total Funds to Raise: ₹510.15 crore
• Offer Details: 1.19 crore shares are being sold by promoters (worth ₹113.05 crore), and the company is issuing 4.18 crore new shares (worth ₹397.1 crore).
• Major Sellers: Richa Sambhav and Samiksha Shreyans Chowdhary will sell 33 lakh shares each; Rani Gouthamchand Chowdhary will sell 38 lakh shares. Other promoters are selling a total of 10 lakh shares.

The funds will be used for expanding the Dhule Facility, repaying loans, and other corporate needs. Pantomath Capital Advisors Pvt Ltd is the lead manager, and Link Intime India Pvt Ltd is handling the registrars.