Sanstar IPO: Ahmedabad-Based Firm Raises ₹153 Crore from Anchor Investors Ahead of Public Issue

Ahmedabad-based Sanstar Limited raised ₹153 crore from anchor investors on Thursday, just before its initial public offering (IPO) opens for public subscription on Friday, July 19, 2024.

The company informed stock exchanges that it had allocated 1,61,10,000 equity shares at ₹95 each to anchor investors on Thursday, July 18, 2024.

Sanstar Limited’s anchor investors include 13 major financial institutions, such as BOFA Securities, Societe Generale, BOI Mutual Fund, Trust Mutual Fund, SBI General Insurance, and others.

Sanstar Limited is a leading manufacturer of plant-based specialty products and ingredients in India. Their products are used in food, animal nutrition, and various industrial sectors, including custards, desserts, sauces, instant foods, baked goods, confectioneries, pastas, soups, mayonnaise, and more.

Sanstar IPO Details

Sanstar Limited’s IPO of equity shares will open on Friday, July 19, 2024, and close on Tuesday, July 23, 2024. The price band for the IPO is set between ₹90 and ₹95 per equity share, potentially raising ₹510.15 crore at the higher end.

The IPO consists of a fresh issue of up to 41.80 million equity shares and an offer for sale (OFS) of up to 11.90 million equity shares by the promoter and promoter group.

Sanstar plans to use ₹181.6 crore from the net fresh issue proceeds to expand its Dhule facility. Another ₹100 crore will be used to repay debts, which totaled ₹164.23 crore as of May 24 this year. The remaining funds will be used for general corporate purposes.

Investors can bid for a minimum of 150 equity shares, with subsequent bids in multiples of 150 shares.

The offer is structured through the Book Building Process. Up to 50 per cent of the offer will be allocated to Qualified Institutional Buyers, at least 15 per cent to Non-Institutional Bidders, and a minimum of 35 per cent to Retail Individual Bidders.