Sanstar’s initial public offering (IPO) will be open for subscription from July 19 to July 23, with a price band set at Rs 90-95 per share.
IPO Details
Sanstar aims to raise Rs 510.15 crore through this IPO, which includes a fresh issue of Rs 397.10 crore and an offer for sale (OFS) of up to 11,900,000 equity shares priced at Rs 2 each.
Selling Shareholders
Several shareholders will be selling their shares via OFS:
- Rani Gouthamchand Chowdhary: 38 lakh shares
- Richa Sambhav Chowdhary and Samiksha Shreyans Chowdhary: 33 lakh shares each
- Gouthamchand Sohanlal Chowdhary, Sambhav Gautam Chowdhary, and Shreyans Gautam Chowdhary: 5 lakh shares each
Reserved Portions
- 50% of the offer is reserved for qualified institutional buyers (QIB)
- 35% is set aside for retail investors
- 15% is for non-institutional investors
Additionally, up to Rs 153 crore worth of shares from the QIB portion have been reserved for the anchor book, which will open for one day on July 18.
Use of Funds
Sanstar plans to use Rs 181.6 crore from the fresh issue to expand its Dhule facility. Another Rs 100 crore will go towards repaying debts, which amounted to Rs 164.23 crore as of May 24 this year. The remaining funds will be used for general corporate purposes.
About Sanstar
Sanstar is a leading manufacturer of plant-based specialty products and ingredient solutions in India for food, animal nutrition, and other industrial applications. Their products include liquid glucose, dried glucose solids, maltodextrin powder, dextrose monohydrate, native maize starches, modified maize starches, and co-products like germs, gluten, fiber, and enriched protein.
According to Frost & Sullivan, Sanstar is the third-largest manufacturer of maize-based specialty products and ingredient solutions in India, with an installed capacity of 3,63,000 tons per annum (1,100 tons per day).
Financial Performance
In Fiscal 2024, Sanstar’s revenue from exports was Rs 394.44 crore, representing 35.53% of its gross revenue from operations. Sanstar exported its products to 49 countries across Asia, Africa, the Middle East, the Americas, Europe, and Oceania. The company’s revenue from operations has increased at a compound annual growth rate (CAGR) of 45.46%, from Rs 5,044.02 million in Fiscal 2022 to Rs 10,672.71 million in Fiscal 2024. Its profit after tax grew at a CAGR of 104.79%, from Rs 159.21 million in Fiscal 2022 to Rs 667.67 million in Fiscal 2024.
Managers
Pantomath Capital Advisors is the sole book-running lead manager for the issue, while Link Intime India is the registrar for the offer.
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