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:
- Food products: as ingredients, thickeners, stabilizers, sweeteners, emulsifiers, and additives (including in baked goods, confectionery, pasta, soups, ketchup, sauces, creams and desserts);
- Pet food products: as nutritional ingredients; and
Refer to Sanstar IPO RHP for detailed information.
Sanstar IPO Details
| IPO Date | July 19, 2024 to July 23, 2024 |
| Listing Date | [.] |
| Face Value | ₹2 per share |
| Price Band | ₹90 to ₹95 per share |
| Lot Size | 150 Shares |
| Total Issue Size | 53,700,000 shares(aggregating up to ₹510.15 Cr) |
| Fresh Issue | 41,800,000 shares(aggregating up to ₹397.10 Cr) |
| Offer for Sale | 11,900,000 shares of ₹2(aggregating up to ₹113.05 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 140,444,250 |
| Share holding post issue | 182,244,250 |
Sanstar IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| QIB Shares Offered | Not more than 50.00% of the Net offer |
| Retail Shares Offered | Not less than 35.00% of the Offer |
| NII (HNI) Shares Offered | Not 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 Date | July 18, 2024 |
| Shares Offered | 16,110,000 |
| 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 Date | Friday, July 19, 2024 |
| IPO Close Date | Tuesday, July 23, 2024 |
| Basis of Allotment | Wednesday, July 24, 2024 |
| Initiation of Refunds | Thursday, July 25, 2024 |
| Credit of Shares to Demat | Thursday, July 25, 2024 |
| Listing Date | Friday, July 26, 2024 |
| Cut-off time for UPI mandate confirmation | 5 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.| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 150 | ₹14,250 |
| Retail (Max) | 14 | 2100 | ₹199,500 |
| S-HNI (Min) | 15 | 2,250 | ₹213,750 |
| S-HNI (Max) | 70 | 10,500 | ₹997,500 |
| B-HNI (Min) | 71 | 10,650 | ₹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 Issue | 99.77% |
| Share Holding Post Issue | 70.37% |
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 Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 | |
| Assets | 527.57 | 368.35 | 207.45 | |
| Revenue | 1,081.68 | 1,209.67 | 504.77 | |
| Profit After Tax | 66.77 | 41.81 | 15.92 | |
| Net Worth | 215.91 | 149.28 | 48.97 | |
| Reserves and Surplus | 225.18 | 158.41 | 55.69 | |
| Total Borrowing | 127.64 | 111.70 | 85.22 |
Key Performance Indicator
The market capitalization of Sanstar IPO is Rs 1731.32 Cr.KPI as of March 31, 2024.
| KPI | Values |
|---|---|
| ROE | 30.92% |
| ROCE | 24.43% |
| Debt/Equity | 0.5 |
| RoNW | 30.92% |
| P/BV | 6.18 |
| PAT Margin (%) | 6.17 |
| Pre IPO | Post IPO | |
|---|---|---|
| EPS (Rs) | 4.75 | 3.66 |
| P/E (x) | 19.98 | 25.93 |
- 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:
- Funding the capital expenditure requirement for the expansion of the Dhule Facility;
- Repayment and/or pre-payment, in part or full, of certain borrowings availed by the Company, and;
- General Corporate Purposes.
