The highly anticipated Sanstar IPO is set to capture significant attention as it prepares to hit the market. With the IPO date confirmed, potential investors and market watchers are eager to assess the offering details, including the date, price, allotment, and overall potential of this public offering. This comprehensive guide provides an in-depth analysis of the Sanstar IPO, covering essential aspects such as the issue’s objectives, pricing details, and allotment process.
Sanstar IPO Overview
Sanstar Limited, a leading manufacturer of plant-based specialty products and ingredient solutions in India, is gearing up for its Initial Public Offering (IPO). The Sanstar IPO will open for subscription on July 19, 2024, and close on July 23, 2024. The company aims to raise approximately ₹510.15 crores through this IPO, which includes a fresh issue of ₹397.10 crores and an offer for sale of up to 11,900,000 equity shares.
Sanstar IPO Issue Details
- IPO Open Date: July 19, 2024
- IPO Close Date: July 23, 2024
- IPO Size: Approx. ₹510.15 Crores
- Fresh Issue: Approx. ₹397.10 Crores
- Offer for Sale: Approx. ₹113.05 Crores
- Face Value: ₹2 Per Equity Share
- IPO Price Band: ₹90 to ₹95 Per Share
- Listing On: BSE & NSE
The IPO will be divided among different investor categories:
- Retail Quota: 35%
- Qualified Institutional Buyers (QIB): 50%
- High Net-Worth Individuals (HNI): 15%
Sanstar Company Profile
Sanstar Limited is recognized for its significant role in the manufacturing of plant-based specialty products. The company’s product portfolio includes liquid glucose, dried glucose solids, maltodextrin powder, dextrose monohydrate, native maize starches, and modified maize starches. These products are used in various applications, including:
- Food Industry: Ingredients, thickening agents, stabilizers, sweeteners, emulsifiers, and additives in bakery products, confectionery, pastas, soups, ketchups, sauces, creams, and desserts.
- Animal Nutrition: Nutritional ingredients for animal feed.
- Industrial Products: Disintegrants, excipients, supplements, coating agents, binders, smoothing & flattening agents, and finishing agents.
According to a Frost & Sullivan report commissioned by the company (dated December 30, 2023), Sanstar is the third-largest manufacturer of maize-based specialty products in India, with an installed capacity of 363,000 tons per annum (1,100 tons per day). The company’s extensive industry experience, technical expertise, and state-of-the-art manufacturing facilities provide a competitive edge in the market.
Objectives of the IPO
The primary objectives of the Sanstar IPO are:
- Capital Expenditure for Facility Expansion: Funding the expansion of the Dhule Facility to enhance production capabilities.
- Repayment of Borrowings: Partial or full repayment of certain borrowings availed by the company.
- General Corporate Purposes: To meet other corporate requirements.
Sanstar IPO Review: Apply or Not
The Sanstar IPO presents a compelling opportunity for investors. With a strong market position, significant growth potential, and a well-defined use of IPO proceeds, Sanstar IPO is a noteworthy consideration. The company’s robust financial performance and strategic expansion plans suggest a positive outlook. Investors may find this IPO appealing, given its potential for growth and stable market presence.
Sanstar IPO Market Lot
For investors looking to participate in the Sanstar IPO, here are the details regarding the minimum and maximum lot sizes:
- Retail Minimum Lot: 150 shares for ₹14,250
- Retail Maximum Lot: 2,100 shares for ₹199,500
- S-HNI Minimum Lot: 2,250 shares for ₹213,750
- B-HNI Minimum Lot: 10,650 shares for ₹1,011,750
Sanstar IPO Allotment & Listing Dates
The IPO allotment and listing process are as follows:
- Basis of Allotment: July 24, 2024
- Refunds: July 25, 2024
- Credit to Demat Account: July 25, 2024
- IPO Listing Date: July 26, 2024
Investors can check the IPO subscription and allotment status on the respective pages.
How to Apply for the Sanstar IPO
Investors can apply for the Sanstar IPO through various methods:
- ASBA (Application Supported by Blocked Amount): Apply online via your bank account by selecting the Sanstar IPO in the Invest section.
- IPO Forms: Download IPO forms from NSE and BSE websites, fill them out, and submit them to your bank or broker.
Sanstar Company Financial Report
The financial performance of Sanstar Limited over recent years is as follows:
| Year | Revenue (₹ Crores) | Expense (₹ Crores) | PAT (₹ Crores) |
|---|---|---|---|
| 2022 | 504.77 | 482.78 | 15.92 |
| 2023 | 1209.67 | 1154.28 | 41.81 |
| 2024 | 1081.68 | 991.96 | 66.77 |
Sanstar IPO Valuation – FY2024
The IPO valuation metrics for FY2024 are as follows:
- Earning Per Share (EPS): ₹4.75 per equity share
- Price/Earnings (P/E) Ratio: 18.95
- Return on Net Worth (RoNW): 30.92%
- Net Asset Value (NAV): ₹15.37 per equity share
Peer Group Comparison
Sanstar’s peers include:
- Gujarat Ambuja Exports Limited
- Gulshan Polyols Limited
- Sukhjit Starch and Chemicals Limited
Sanstar IPO Registrar and Lead Managers
- Registrar: Link Intime India Private Ltd
- Phone: +91 8108114949
- Email: sanstar.ipo@linkintime.co.in
- Website: Link Intime
- Lead Managers: Pantomath Capital Advisors Private Limited
Sanstar Company Contact Information
- Address: Sanstar Limited, Sanstar House, near Parimal Under Bridge, Opposite Suvidha Shopping Centre, Paldi, Ahmedabad 380 007, Gujarat, India
- Phone: +91 79 26651819
- Email: cs@sanstar.in
- Website: Sanstar Limited
Sanstar IPO FAQs
- What is Sanstar?
- The Sanstar IPO is a main-board IPO aimed at raising ₹510.15 crores, with a price band of ₹90 to ₹95 per equity share. It will be listed on BSE and NSE.
- When will the Sanstar open?
- The IPO will open on July 19, 2024.
- What are the investor portions for the Sanstar?
- QIB: 50%, NII: 15%, Retail: 35%.
- How to apply for the Sanstar?
- Apply via ASBA through your bank account or stock broker. Forms are available on NSE and BSE websites.
- What is the minimum lot size for the Sanstar?
- The minimum bid is 150 shares for ₹14,250.
- What are the allotment and listing dates?
- Allotment: July 24, 2024; Listing: July 26, 2024.