Sanstar IPO To Close Today; Listing On 26 July
The allotment for the issue will be declared on 24 July and subsequently the shares will be listed on 26 July on the NSE and BSE
The initial public offering (IPO) of Sanstar, which opened on 19 July to raise over Rs 500 crore from through its combination of fresh issue and offer for sale (OFS) component, is scheduled to close on 23 July.
The Rs 510.15 crore IPO consisted of fresh issues of up to Rs 397.10 crore and an offer-for-sale (OFS) worth Rs 113.05 crore by promoter and investor selling shareholders with the price band for the issue being fixed at Rs 90 to 95.
The retail category can bid for maximum of 13 lots with a minimum capital of Rs 14,250 for 1 lot containing 150 shares.
The total subscription of the issue stood at 17 times at the time of filing this report. The retail subscription contributed 14.47 times, however the qualified institution showed its dull interest with only 1.29 times subscription.
The allotment for the issue will be declared on 24 July and subsequently the shares will be listed on 26 July on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
Pantomath Capital Advisors is the book running lead managers, while Link Intime India is the registrar to the offer.
Analyst Advice
(This is a developing story, please refresh for further updates).
IPO Objectives
The proceeds of Rs 397.10 crore from the fresh issue will be utilised for prepayment or scheduled repayment of a portion of certain outstanding borrowings availed by the company and general corporate purposes.
Additionally, the firm will also get benefits on listing in the public market which will enhance the brand’s visibility and provide liquidity to the shareholders.
Firm’s Financials
The firm registered revenue of Rs 1,081 crore in FY24, compared to Rs 1,209 crore in FY23.
However, the firm’s profit after tax (PAT) increased to Rs 66.77 crore in FY23 compared to Rs 41.81 crore in FY22.
Overall, revenue decreased by 10.58 per cent, whereas PAT climbed by 59.71 per cent.
About Sanstar
Sanstar was established in 1982 and is an Indian company that produces plant-based goods and ingredient solutions for pet food, food and other industrial uses.
Liquid glucose, dried glucose solids, maltodextrin powder, dextrose monohydrate, native and modified maize starches, and by-products such germ, gluten, fibre, and fortified proteins are among the items offered by the company.
