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Sanstar Limited IPOof Rs 510.15 crores (Sanstar IPO) Detail

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 is a book built issue of Rs 510.15 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.

Pantomath Capital Advisors Pvt Ltd is the book running lead manager of the Sanstar IPO, while Link Intime India Private Ltd is the registrar for the issue.

About Sanstar Limited

Founded in 1982, Sanstar Limited manufactures specialty plant-based products and ingredient solutions for food, pet food and other industrial applications in India.

The company’s product portfolio includes liquid glucose, dried glucose solids, maltodextrin powder, dextrose monohydrate, native maize starches, modified maize starches, and by-products such as germ, gluten, fiber and fortified proteins.

These products are used in:

  1. Food products: as ingredients, thickeners, stabilizers, sweeteners, emulsifiers, and additives (including in baked goods, confectionery, pasta, soups, ketchup, sauces, creams and desserts);
  2. Pet food products: as nutritional ingredients; and

Refer to Sanstar IPO RHP for detailed information.

Sanstar IPO Details

IPO DateJuly 19, 2024 to July 23, 2024
Listing Date[.]
Face Value₹2 per share
Price Band₹90 to ₹95 per share
Lot Size150 Shares
Total Issue Size53,700,000 shares(aggregating up to ₹510.15 Cr)
Fresh Issue41,800,000 shares(aggregating up to ₹397.10 Cr)
Offer for Sale11,900,000 shares of ₹2(aggregating up to ₹113.05 Cr)
Issue TypeBook Built Issue IPO
Listing AtBSE, NSE
Share holding pre issue140,444,250
Share holding post issue182,244,250

Sanstar IPO Reservation

Investor CategoryShares Offered
QIB Shares OfferedNot more than 50.00% of the Net offer
Retail Shares OfferedNot less than 35.00% of the Offer
NII (HNI) Shares OfferedNot less than 15.00% of the Offer

Sanstar IPO Anchor Investors Details

Sanstar IPO raises Rs 153.05 crore from anchor investors. Sanstar IPO Anchor bid date is July 18, 2024.

Bid DateJuly 18, 2024
Shares Offered16,110,000
Anchor Portion Size (In Cr.)153.05
Anchor lock-in period end date for 50% shares (30 Days)August 23, 2024
Anchor lock-in period end date for remaining shares (90 Days)October 22, 2024

Sanstar IPO Timeline (Tentative Schedule)

Sanstar IPO opens on July 19, 2024, and closes on July 23, 2024.

IPO Open DateFriday, July 19, 2024
IPO Close DateTuesday, July 23, 2024
Basis of AllotmentWednesday, July 24, 2024
Initiation of RefundsThursday, July 25, 2024
Credit of Shares to DematThursday, July 25, 2024
Listing DateFriday, July 26, 2024
Cut-off time for UPI mandate confirmation5 PM on July 23, 2024

Sanstar IPO Lot Size

Investors can bid for a minimum of 150 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.

ApplicationLotsSharesAmount
Retail (Min)1150₹14,250
Retail (Max)142100₹199,500
S-HNI (Min)152,250₹213,750
S-HNI (Max)7010,500₹997,500
B-HNI (Min)7110,650₹1,011,750

Sanstar IPO Promoter Holding

Gouthamchand Sohanlal Chowdhary, Sambhav Gautam Chowdhary, and Shreyans Gautam Chowdhary are the company's promoters.

Share Holding Pre Issue99.77%
Share Holding Post Issue70.37%

Sanstar Limited Financial Information (Restated Consolidated)

Sanstar Limited's revenue decreased by -10.58% and profit after tax (PAT) rose by 59.71% between the financial year ending with March 31, 2024 and March 31, 2023.

Period Ended31 Mar 202431 Mar 202331 Mar 2022
Assets527.57368.35207.45
Revenue1,081.681,209.67504.77
Profit After Tax66.7741.8115.92
Net Worth215.91149.2848.97
Reserves and Surplus225.18158.4155.69
Total Borrowing127.64111.7085.22

Key Performance Indicator

The market capitalization of Sanstar IPO is Rs 1731.32 Cr.

KPI as of March 31, 2024.
KPIValues
ROE30.92%
ROCE24.43%
Debt/Equity0.5
RoNW30.92%
P/BV6.18
PAT Margin (%)6.17
Check Sanstar IPO Peer Comparison here.
Pre IPO Post IPO
EPS (Rs)  4.75 3.66
P/E (x)  19.98 25.93
Note:
  • The Pre IPO EPS is calculated based on Pre issue shareholding as on date of RHP and the latest FY earnings as of March 31, 2024 that is available in RHP.
  • The Post Issue EPS is calculated based on the Post issue shareholding and annualized FY earnings of March 31, 2024 that is available in RHP.

Objects of the Issue (Sanstar IPO Objectives)

The Net Proceeds of the Fresh Issue, i.e., Gross Proceeds of the Fresh Issue less the offer expenses apportioned to the Company are proposed to be utilized in the following manner:

  1. Funding the capital expenditure requirement for the expansion of the Dhule Facility;
  2. Repayment and/or pre-payment, in part or full, of certain borrowings availed by the Company, and;
  3. General Corporate Purposes.

 

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