Sanstar shares made a strong debut on the stock market today. On the NSE, Sanstar shares opened at ₹109 each, 14.73% higher than the issue price of ₹95. On the BSE, they opened at ₹106.40, up 12% from the issue price.
Market experts had predicted that Sanstar shares would open between ₹125 and ₹130 each.
IPO Details and Subscription
Sanstar’s IPO began on Friday, July 19, and ended on Tuesday, July 23. By the last day, the IPO was oversubscribed by 82.99 times.
Qualified institutional buyers (QIBs) showed great interest, with their portion being subscribed 145.68 times. Non-institutional investors (NIIs) also showed strong interest, with their portion being subscribed 136.50 times. Retail investors’ portion was subscribed 24.23 times.
About Sanstar
Sanstar Limited produces plant-based products and ingredients for pet food, human food, and other industrial uses. Their products include liquid glucose, dried glucose solids, maltodextrin powder, dextrose monohydrate, native and modified maize starches, and by-products like germ, gluten, fiber, and fortified proteins.
IPO Financial Details
Sanstar aimed to raise ₹510.15 crore through the IPO. This included a new issue of 4.18 crore equity shares worth ₹397.1 crore and an offer-for-sale (OFS) of 1.19 crore shares worth ₹113.05 crore by the promoters.
In the OFS, Rani Gouthamchand Chowdhary sold 38 lakh equity shares, while Richa Sambhav and Samiksha Shreyans Chowdhary each sold 33 lakh shares. Gouthamchand Sohanlal Chowdhary, Sambhav Gautam Chowdhary, and Shreyans Gautam Chowdhary each sold 5 lakh shares.
The funds raised from the new issue will be used for general corporate purposes, repaying or prepaying some or all of the company’s debts, and funding capital expenditures to expand the Dhule Facility.
Pantomath Capital Advisors Private Ltd managed the IPO, and Link Intime India Private Ltd was the registrar.
Grey Market Premium (GMP)
Sanstar’s IPO grey market premium (GMP) is +25, indicating that shares were trading at a ₹25 premium in the grey market. Based on this, the estimated listing price was ₹120 per share, 26.32% higher than the IPO price of ₹95.
Activity in the grey market over the last 14 days suggested a strong listing. According to investorgain.com, the GMP ranged from ₹0 to ₹44. The grey market premium reflects investors’ willingness to pay more than the issue price.
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