Sanstar Limited IPO Day 1: GMP, Review, Subscription Status & More – Buy or Not?

Sanstar Limited IPO: The initial public offering (IPO) of Sanstar Limited started today and will be open until Tuesday, 23rd July 2024. Sanstar Limited, a company providing ingredients for pet foods, has set the IPO price band at ₹90 to ₹95 per share. The IPO will be listed on BSE and NSE. According to market watchers, Sanstar Limited shares are available in the grey market at a premium of ₹42.

Sanstar Limited IPO Subscription Status

As of 10:24 AM on the first day of bidding, the IPO was subscribed 0.25 times, with the retail portion subscribed 0.29 times and the Non-Institutional Investor (NII) segment subscribed 0.48 times.

Key Details of Sanstar Limited IPO

1. GMP: Sanstar Limited shares are trading at a premium of ₹42 in the grey market today.
2. Price Band: The price range for the IPO is ₹90 to ₹95 per share.
3. IPO Dates: The IPO opened today and will close on 23rd July 2024.
4. IPO Size: Sanstar Limited aims to raise ₹510.15 crore, with ₹113.05 crore reserved for offer for sale (OFS).
5. Lot Size: Investors can apply in lots, with one lot consisting of 150 shares.
6. Allotment Date: Shares are expected to be allocated on Wednesday, 24th July 2024.
7. Registrar: Link Intime India Private Limited is the official registrar for the IPO.
8. Listing: The IPO will be listed on BSE and NSE.
9. Listing Date: Following the ‘T+3’ listing rule, the IPO is likely to be listed on Friday, 26th July 2024.

Sanstar Limited IPO: Buy or Not?

Amit Goel, Co-Founder & Chief Global Strategist at Pace 360, recommends buying the IPO. He highlighted that Sanstar Limited produces specialty plant-based products and ingredient solutions for food, pet food, and other industrial applications. The company exports to over 50 countries and has shown steady growth in its bottom line. Based on FY24 earnings, the issue seems aggressively priced.

SBI Securities also recommends subscribing to the IPO, valuing the company at a FY24 P/E multiple of 25.9x post-issue market capital. The company’s revenue and profit have grown significantly, and it is raising funds to expand its Dhule facility, expected to be operational by July 2025. This expansion will increase production capacity, boosting revenue. With the global and Indian maize starch markets expected to grow, the company is well-positioned for future growth.

Other brokerages like DR Choksey and Swastika Investmart have also given a ‘subscribe’ recommendation for the Sanstar Limited IPO.