Sanstar IPO Details and Key Information
Sanstar, a leading producer of plant-based specialty goods and ingredient solutions in India, is all set to launch its IPO on Friday, July 19. The IPO will have a price band of ₹90 to ₹95 per equity share with a face value of ₹2. The total issue size is estimated to be ₹510 crore and will close on Tuesday, July 23.
The IPO consists of a new issue of 4.18 crore shares and an offer for sale of 1.19 crore shares by selling shareholders, making the estimated IPO size at the top end of the pricing range to be ₹510.15 crore. The funds raised will be used to pay off debt, fund capital investment for expanding the Dhule plant, and for general corporate purposes.
Sanstar’s promoters, Gouthamchand Sohanlal Chowdhary, Sambhav Gautam Chowdhary, and Shreyans Gautam Chowdhary, collectively own 57.22% of the equity share capital. The company’s listed peers include Gujarat Ambuja Exports Ltd, Gulshan Polyols Ltd, and Sukhjit Starch and Chemicals Ltd.
The firm operates two manufacturing facilities in Maharashtra and Gujarat, with a focus on sustainability and advanced automation. Their products include liquid glucose, dextrose monohydrate, and maize starches, among others, catering to various industries like food, animal nutrition, and industrial applications.
Sanstar’s financials have shown significant growth, with revenue increasing at a CAGR of 45.46% and profit after tax growing at a CAGR of 104.79% between fiscal years 2022 and 2024.
Investors are advised to consider the key risks associated with the IPO, including the company’s dependence on raw material suppliers and specific industries for product demand. The lock-in period for equity shares allotted to anchor investors is also outlined in the IPO details.
Overall, Sanstar’s IPO presents an opportunity for investors to participate in a growing company with a strong market presence and promising financial performance.