Sanstar ltd IPO Details :
Sanstar IPO is a book built issue of Rs 510.15 crores. The issue is a combination of fresh issue of 4.18 crore shares aggregating to Rs 397.10 crores and offer for sale of 1.19 crore shares aggregating to Rs 113.05 crores.
Sanstar IPO opens for subscription on July 19, 2024 and closes on July 23, 2024. The allotment for the Sanstar IPO is expected to be finalized on Wednesday, July 24, 2024. Sanstar IPO will list on BSE, NSE with tentative listing date fixed as Friday, July 26, 2024.
Sanstar IPO price band is set at ₹90 to ₹95 per share. The minimum lot size for an application is 150 Shares. The minimum amount of investment required by retail investors is ₹14,250. The minimum lot size investment for sNII is 15 lots (2,250 shares), amounting to ₹213,750, and for bNII, it is 71 lots (10,650 shares), amounting to ₹1,011,750.
Sanstar IPO is a book-built issue aiming to raise Rs 510.15 crores. The IPO consists of a fresh issue of 4.18 crore shares totaling Rs 397.10 crores and an offer for sale of 1.19 crore shares totaling Rs 113.05 crores.
Key Dates
- Subscription Period: July 19, 2024, to July 23, 2024
- Allotment Date: July 24, 2024
- Listing Date: July 26, 2024 (BSE, NSE)
Pricing and Lot Size
- Price Band: ₹90 to ₹95 per share
- Minimum Lot Size: 150 shares
- Retail Investment: ₹14,250 minimum
- sNII Investment: ₹213,750 minimum (15 lots)
- bNII Investment: ₹1,011,750 minimum (71 lots)
Lead Manager and Registrar
- Book Running Lead Manager: Pantomath Capital Advisors Pvt Ltd
- Registrar: Link Intime India Private Ltd
Shareholding
- Pre-Issue Shares: 140,444,250
- Post-Issue Shares: 182,244,250
Reservation
- QIB: Up to 50%
- Retail: At least 35%
- NII (HNI): At least 15%
Financial Information
Revenue and Profit
- Revenue (FY 2024): ₹1,081.68 crores
- Profit After Tax (FY 2024): ₹66.77 crores
Assets and Net Worth
- Total Assets (FY 2024): ₹527.57 crores
- Net Worth (FY 2024): ₹215.91 crores
Key Performance Indicators
- ROE: 30.92%
- ROCE: 24.43%
- Debt/Equity Ratio: 0.5
- PAT Margin: 6.17%
Promoters
- Promoters: Gouthamchand Sohanlal Chowdhary, Sambhav Gautam Chowdhary, and Shreyans Gautam Chowdhary
- Pre-Issue Holding: 99.77%
- Post-Issue Holding: 70.37%
Manufacturing Facilities
- Locations: Dhule (Maharashtra) and Kutch (Gujarat)
- Total Area: 10.68 million square feet
- Installed Capacity: 3,63,000 tons per annum
Market Presence
- Global Reach: Exports to 49 countries
- Domestic Reach: Products sold in 22 states in India
IPO Objectives
- Capital Expenditure: Expansion of Dhule facility
- Debt Repayment: Partial or full repayment of certain borrowings
- General Corporate Purposes
Investment Insights
Analyst Review
Dilip Davda suggests that while Sanstar has shown inconsistency in revenue, its profits have steadily grown. The IPO is priced aggressively based on FY24 earnings, but the company’s strong market position and potential for improved performance make it a moderate long-term investment for well-informed investors.
Rating and Contact Information
- Sanstar IPO Rating: 3.8 stars
- Contact: Sanstar Limited, Sanstar House, near Parimal Under Bridge, Opp. Suvidha Shopping Centre, Paldi, Ahmedabad – 380 007
- Phone: +91 79 26651819
- Email: cs@sanstar.in
- Registrar Contact: Link Intime India Private Ltd, Phone: +91-22-4918 6270, Email: sanstar.ipo@linkintime.co.in
Sanstar Limited Announces Rs 510.15 Crore IPO: Key Details and Insights
Sanstar Limited is set to launch its Initial Public Offering (IPO), aiming to raise Rs 510.15 crores through a combination of fresh issue and an offer for sale. The IPO will open for subscription on July 19, 2024, and close on July 23, 2024. The company plans to list its shares on the BSE and NSE, with the tentative listing date fixed for July 26, 2024.
IPO Breakdown
The IPO comprises a fresh issue of 4.18 crore shares aggregating to Rs 397.10 crores and an offer for sale of 1.19 crore shares aggregating to Rs 113.05 crores. The price band is set between ₹90 to ₹95 per share, and investors can bid for a minimum lot size of 150 shares. Retail investors will need to invest a minimum of ₹14,250.
Key Dates and Managers
- Subscription Period: July 19, 2024 – July 23, 2024
- Allotment Date: July 24, 2024
- Listing Date: July 26, 2024
- Book Running Lead Manager: Pantomath Capital Advisors Pvt Ltd
- Registrar: Link Intime India Private Ltd
Shareholding and Reservation
Sanstar’s shareholding will see an increase from 140,444,250 pre-issue shares to 182,244,250 post-issue shares. The IPO reserves up to 50% for Qualified Institutional Buyers (QIBs), at least 35% for retail investors, and at least 15% for Non-Institutional Investors (NIIs).
Financial Performance
Sanstar Limited reported a revenue of ₹1,081.68 crores for the financial year ending March 31, 2024, a slight decrease from the previous year’s ₹1,209.67 crores. However, the company’s profit after tax surged by 59.71%, reaching ₹66.77 crores.
About Sanstar Limited
Founded in 1982, Sanstar Limited specializes in manufacturing plant-based products and ingredient solutions for various applications, including food, pet food, and industrial products. The company’s extensive product portfolio features liquid glucose, dried glucose solids, maltodextrin powder, dextrose monohydrate, and various maize starches.
Sanstar operates two major manufacturing facilities in Dhule, Maharashtra, and Kutch, Gujarat, covering a total area of 10.68 million square feet. With an installed capacity of 3,63,000 tons per annum, the company is among the top manufacturers of corn-based specialty products in India. Sanstar exports its products to 49 countries and maintains a strong presence across 22 states in India.We are the third largest manufacturer of maize based speciality products and ingredient solutions in India. Our products include liquid glucose, dried glucose solids, maltodextrin powder, dextrose monohydrate, native starches, modified starches and co-products like germs, gluten, fiber and enriched protein, amongst others. Our speciality products and ingredient solutions are produced at our large-volume, state of the art, strategically located manufacturing facilities at Dhule in Maharashtra and Kutch in Gujarat. We believe that our leading position in the industry, technical knowledge to bring specific functionality and nutrition to end products, more than Six decades of combined promoter experience, state of the art manufacturing facilities, diverse product portfolio and clientele in domestic and global markets, provide us with competitive advantage.
IPO Objectives
The proceeds from the fresh issue will be utilized for the following purposes:
- Expansion of the Dhule manufacturing facility.
- Partial or full repayment of certain borrowings.
- General corporate purposes.
Investment Insights
According to analyst Dilip Davda, Sanstar has shown inconsistency in revenue but a steady increase in profits. The IPO is priced aggressively based on FY24 earnings. Given the company’s market position and potential for future growth, informed investors may consider a moderate long-term investment.
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