Sanstar, a company that makes plant-based specialty goods, launched its initial public offering (IPO) today, Friday, July 19. Within hours, the IPO was fully subscribed, mainly driven by non-institutional investors (NIIs) and retail investors. As of 12:00 PM IST, the Sanstar IPO was subscribed 1.43 times, according to BSE data.
Bids Received
The IPO received bids for 5,37,40,500 shares against 3,75,90,000 shares on offer. The NII quota was subscribed 2.45 times, and the retail portion 1.81 times, while the quota for qualified institutional buyers (QIBs) is yet to be fully booked.
Sanstar has allocated 15% of its shares for NIIs, 50% for QIBs, and 35% for retail investors. The company announced on Thursday that it received ₹153 crore from anchor investors, including global financial institutions, domestic mutual funds, large insurance and non-banking financial firms, alternative investment funds (AIFs), and international portfolio institutions.
Top Producer
Sanstar, based in Ahmedabad, is a top producer of plant-based specialty goods in India. Their products improve the flavour, texture, nutritional value, and usability of food and are used as ingredients, thickeners, stabilisers, and sweeteners.
The Sanstar IPO price band is set between ₹90 and ₹95 per equity share with a lot size of 150 shares. The IPO ends on Tuesday, July 23. The basis for share allocation is expected to be finalised on Wednesday, July 24, with refunds starting on Thursday, July 25. Shares will be credited to demat accounts on the same day as the refunds. Sanstar shares are expected to be listed on the BSE and NSE on Friday, July 26.
IPO
Sanstar aims to raise ₹510.15 crore through the 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 by the company.
Promoters Richa Sambhav and Samiksha Shreyans Chowdhary are selling 33 lakh shares each via the OFS, and Rani Gouthamchand Chowdhary is selling 38 lakh shares. Other promoters, Gouthamchand Sohanlal Chowdhary, Sambhav Gautam Chowdhary, and Shreyans Gautam Chowdhary, are each selling 5 lakh shares.
Dhule Facility
The proceeds from the fresh issue will be used to expand the Dhule facility, repay or prepay some of the company’s loans, and for general corporate purposes. Pantomath Capital Advisors Private Ltd is the sole book running lead manager, and Link Intime India Private Ltd is the registrar for the offer.
In the grey market, Sanstar IPO is trading at a premium of ₹37, indicating that shares could list at ₹132 each, which is 38.95% higher than the IPO price of ₹95.
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