Sanstar Lists at 15% Premium at Rs 109 per share on BSE!

Founded in 1982, Sanstar Limited specializes in producing plant-based ingredients and solutions for food, pet food, and industrial applications in India, debuted on the stock market today.

The company’s stock settled at Rs 106.40 per share on the BSE, representing an impressive 12% premium over the final issue price of Rs 95 per share. Additionally, on the NSE, the company’s shares opened at Rs 109 per share, indicating a gain of 14.73%. The market capitalisation on the BSE stands at around Rs 2042.59 crore.

IPO Proceeds 

The company proposes to utilize the Net Proceeds for the following purposes: funding the capital expenditure required for the expansion of the Dhule Facility, repayment and/or pre-payment, in part or in full, of certain borrowings availed by the company, and for general corporate purposes.

Business Overview

Founded in 1982, Sanstar Limited specializes in producing plant-based ingredients and solutions for food, pet food, and industrial applications in India. Their product range 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. It exports to 49 countries across Asia, Africa, the Middle East, the Americas, Europe, and Oceania. Domestically, their products are available in 22 states throughout India.

Subscription details 

As of July 23, 2024, the IPO was subscribed 82.9 times. The public issue saw a subscription rate of 24.23 times in the retail category, 145.68 times in the QIB category, and 136.49 times in the NII category.

The IPO price band was Rs 90 and Rs 95, with a face value of Rs 2 per share and a lot size of 150 shares. The total size of the company’s IPO was Rs 510.15 crore, and the final share issue price was fixed at Rs 95 each.

Conclusion 

The crucial question that arises in everyone’s mind is whether to hold onto the shares or book profits. Investors who applied for listing gains only have already earned around 15% on the listing day itself and can choose to book the profit generated or watch for at least the first 15 minutes and then set a stop-loss at the day’s low price. On the other hand, investors with a higher risk appetite may opt to hold the shares for the medium to long term, which could prove to be beneficial.

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.