Sanstar IPO Subscription: Sanstar opens IPO to collect bids from investors for subscription on July 19. The company will close the subscription in July 23.
Sanstar is in the manufacturing of speciality plant-based products and ingredient solutions for food, pet food, and other industrial applications in India. The company’s product portfolio includes dried glucose solids, liquid glucose, maltodextrin powder, dextrose monohydrate, modified maize starches, native maize starches, and by-products such as germ, gluten, fibre and fortified proteins.
Issue Size
The company will be collecting a sum of Rs 510.15 crore from the investors through a combination of fresh issue as well as an offer for sale. Sanstar will offer 41.8 million fresh shares of the company to bidders for a value of Rs 397.10 crore. The promoters and other selling shareholders will offload 11.9 million shares of the company for Rs 113.05 crore.
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Price Band
Sanstar kept the IPO price band between a range of Rs 90 to Rs 95 per equity share. The minimum investment for a retail investor is Rs 14,250 as it needs to buy at least 150 shares. While the minimum investment for NIIs and QIBs is different.
Allotment and Listing
The company’s shares allotment is likely to be finalised on July 24, While the listing date for the IPO’s public debut on BSE and NSE is kept on July 26, as per the tentative schedule.
Sanstar is looking to pay its debt and strengthen its balance and invest in building additional capacity to fuel its growth, said Master Capital in an IPO note. “Post the proposed expansion, the capacity will almost double from current levels creating a huge headroom for growth. The current capacity is already 90% filled and the capex for expansion has already started. The valuation of the IPO is at par with the listed peers, but given the growth prospects, we advise to “Subscribe” to the IPO keeping a long-term view,” Master Capital said.
BRLMs and Registrar
Pantomath Capital Advisors worked as the book-running lead manager for the issue of Sanstar, while Link Intime India as the registrar.