Sanstar IPO Last Bidding Date Today: Should You Subscribe? Check GMP, Review, and Other Key Details

The subscription for Sanstar Ltd’s IPO has been strong, with non-institutional investors leading the way, followed by retail investors and then qualified institutional buyers. By the second day, the IPO was subscribed 13.48 times according to BSE data.

Non-institutional investors subscribed 32.85 times their share, retail investors subscribed 12.15 times, and qualified institutional buyers subscribed 1.29 times.

On the first day, Friday, July 19, the IPO was subscribed 4.16 times. The allocation is 15% for non-institutional investors, 50% for qualified institutional buyers, and 35% for retail investors. Sanstar also raised ₹153 crore from anchor investors.

About Sanstar Ltd

Sanstar Ltd produces plant-based specialized goods and ingredient solutions. They are India’s fifth-largest maker of maize-based specialized goods. Their products serve the food industry, animal nutrition, and various industrial uses, with a production capacity of 3,63,000 tonnes per year.

Sanstar IPO Review

Canara Bank Securities

Sanstar has a strong market position, a growing global presence, and high entry barriers. They have expanded manufacturing capacities and have long-term customer relationships. This makes it an attractive investment opportunity. The IPO is reasonably priced at 20.0 times the top price range based on FY24 profits. Canara Bank Securities recommends subscribing to the IPO.

Nirmal Bang

Sanstar’s revenue grew at a 42% CAGR between FY20 and FY24. Operating margins increased from 7.1% in FY20 to 9.2% in FY24. The company has outperformed peers in terms of sales growth and profitability. The IPO is priced at 26 times FY24 EPS, which is lower than the peer average of 34.7 times. However, excluding Gulshan Polyols, the peer average drops to 16.9 times. Nirmal Bang recommends subscribing for long-term investment due to Sanstar’s strong growth and profitability.

Sanstar IPO Details

The company aims to raise ₹510.15 crore through its IPO. This includes an offer-for-sale (OFS) of 1.19 crore shares worth ₹113.05 crore by the promoters and a fresh issue of 4.18 crore shares worth ₹397.1 crore.

Richa Sambhav and Samiksha Shreyans Chowdhary are selling 33 lakh shares each, and Rani Gouthamchand Chowdhary is selling 38 lakh shares. Other promoters selling shares include Gouthamchand Sohanlal Chowdhary, Sambhav Gautam Chowdhary, and Shreyans Gautam Chowdhary, each selling 5 lakh shares.

The funds will be used to expand the Dhule facility, repay or prepay some of the company’s debts, and for general corporate purposes. Pantomath Capital Advisors Private Ltd is the lead manager, and Link Intime India Private Ltd is the registrar.

Sanstar IPO Grey Market Premium (GMP) Today

Sanstar’s IPO grey market premium is +30, indicating that shares are trading at a ₹30 premium in the grey market. Based on the upper end of the IPO price band and the current grey market premium, the estimated listing price is ₹125 per share, which is 31.58% higher than the IPO price of ₹95.

Grey market activity suggests a solid listing, with the GMP ranging from ₹0 to ₹44 over the past 11 sessions. The grey market premium shows that investors are willing to pay more than the issue price.