Sanstar Limited IPO set to open for subscription on July 19, 2024

Sanstar Limited, a company founded in 1982, specializes in the manufacture of speciality plant-based products and ingredient solutions for food, pet food, and various industrial applications in India. The company’s diverse 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, and fibre.

Sanstar IPO Details

Sanstar Limited’s IPO is structured as a book-built issue, aiming to raise Rs 510.15 crore. The issue is divided into a fresh issue of 4.18 crore shares, amounting to Rs 397.10 crore, and an offer for the sale of 1.19 crore shares, totalling Rs 113.05 crore. This blend of fresh issuance and an offer for sale provides a balanced approach to raising capital while also offering existing shareholders an opportunity to divest their holdings.

The IPO will open for subscription on July 19, 2024, and close on July 23, 2024. The allotment of shares is expected to be finalized by July 24, 2024, with a tentative listing date on the BSE and NSE set for July 26, 2024. The price band for the IPO is set at Rs 90 to Rs 95 per share.

Utilization of IPO Proceeds

The funds raised from Sanstar Limited’s IPO will primarily support the expansion of its Dhule Facility, along with the repayment or prepayment of existing borrowings and general corporate purposes. These strategic allocations are geared towards enhancing operational capabilities and fueling future growth opportunities for the company in the speciality plant-based products sector.

Conclusion: Sanstar Limited’s forthcoming IPO, with a targeted raise of Rs 510.15 crore and a price band of Rs 90 to Rs 95 per share, promises an enticing opportunity for investors. The allocation of funds towards expanding the Dhule Facility, debt repayment, and general corporate purposes positions Sanstar for sustained growth in the speciality products sector. Investors can anticipate robust participation as Sanstar aims to leverage its IPO to bolster its market position and operational capabilities effectively.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.