Sanstar IPO: Subscription Soars 8.64x on Day 2, Led by NIIs – Check GMP, Subscription Status, and Details

Sanstar Ltd’s initial public offering (IPO) saw high interest from investors on its second bidding day, with non-institutional investors (NIIs) leading the charge. By 12:36 IST, the IPO was subscribed 8.64 times, according to data from the BSE.

As per the BSE data, the IPO received bids for 32,47,02,750 shares against the 3,75,90,000 shares on offer.

Investor Response

• Non-institutional investors subscribed 20.27 times.
• Retail individual investors subscribed 8.52 times.
• Qualified institutional buyers (QIBs) had a 13% subscription.

On the first bidding day, the IPO was subscribed 4.16 times, with NIIs leading at 9.85 times, retail investors at 4.07 times, and QIBs at 5%.

Sanstar has allocated 15% of shares for NIIs, 50% for QIBs, and 35% for retail investors.

About Sanstar Ltd

Sanstar Ltd makes specialty products and ingredients used in foods (like bakery items, sauces, and desserts), animal nutrition, and other industrial products. The company has two production sites in Dhule, Maharashtra, and Kutch, Gujarat.

The company has a dedicated Research & Development team of 10 people with 40 years of combined experience. The primary raw material used is maize.

Sanstar IPO Details

The IPO aims to raise ₹510.15 crore, consisting of:

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

Promoters selling shares through the OFS include Richa Sambhav, Samiksha Shreyans Chowdhary, and Rani Gouthamchand Chowdhary, along with Gouthamchand Sohanlal Chowdhary, Sambhav Gautam Chowdhary, and Shreyans Gautam Chowdhary.

The proceeds will be used for:

• Expanding the Dhule facility.
• Repaying some of the company’s borrowed funds.
• General corporate purposes.

The sole book-running lead manager is Pantomath Capital Advisors Pvt Ltd, and the registrar is Link Intime India Pvt Ltd.

Sanstar IPO Grey Market Premium (GMP)

The grey market premium (GMP) for Sanstar IPO is +28, indicating that shares are trading at a ₹28 premium in the grey market. With the IPO price band at ₹95, the estimated listing price is ₹123, which is 29.47% higher than the IPO price.

Based on recent grey market activity, the GMP has been trending upward, suggesting a strong listing. The GMP ranged from ₹0 to ₹44 over the last ten sessions.

Note: The grey market premium reflects investors’ willingness to pay more than the issue price.