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16 July 2024

Sanstar Limited IPO

Sanstar is one of the major manufacturers of plant-based specialty products and ingredient solutions in India for food, animal nutrition and other industrial applications. Their products include liquid glucose, dried glucose solids, maltodextrin powder, dextrose monohydrate, native maize starches, modified maize starches and co-products like germs, gluten, fiber and enriched protein. They are India's third largest manufacturer of maize-based speciality products and ingredient solutions. Sanstar IPO is a book-built issue of Rs 510.15 crores.

The issue combines a fresh issue of 4.18 crore shares aggregating to Rs 397.10 crores and an offer for sale of 1.19 crore shares aggregating to Rs 113.05 crore. Sanstar IPO opens for subscription on July 19, 2024 and closes on July 23, 2024. Sanstar's IPO price band is set at ₹90 to ₹95 per share. The minimum lot size for an application is 150 Shares. 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.

Sanstar IPO Overview

Detail	Description
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
Shareholding pre issue	140,444,250
Shareholding post issue	182,244,250

Sanstar IPO Timeline (Tentative Schedule)

Detail	Description
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

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 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

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

Company & Financials

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)./li>
2. Pet food products: as nutritional ingredients.
3. Other industrial products: disintegrants, excipients, supplements, coating agents, binders, smoothing and flattering agents and refining agents.

The company has two manufacturing facilities covering a total area of 10.68 million square feet at Dhule in the state of Maharashtra and Kutch in the state of Gujarat. With an installed capacity of 3,63,000 tons per annum (1,100 tons per day), the company is the fifth largest manufacturer of corn-based specialty products and ingredients in India.

Sanstar Limited Financial Information

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
Amount in ₹ Crore

Key Performance Indicator

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

Objectives of Sanstar IPO

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.
3. General Corporate Purposes.

Sanstar IPO Review

The company is one of the major manufacturers of specialty products and ingredient solutions in India for food, animal nutrition and other industrial applications having a good market share in global and domestic markets. For the reported periods, though it marked inconsistency in its top lines, the bottom line steadily grew. Based on FY24 super earnings, the issue appears aggressively priced. Amidst rising demand for its products, the management is confident of improving the trends reported and its performance post-expanded capacities. Well-informed investors may park moderate funds for the long term.

FAQs for Sanstar IPO

What is the Sanstar IPO?

Sanstar IPO is a main-board IPO. They are going to raise ₹510.15 Crores via IPO. The issue is priced at ₹90 to ₹95 per equity share. The IPO is to be listed on BSE & NSE.
When will the Sanstar IPO open?

The IPO will open on July 19, 2024 for QIB, NII, and Retail Investors.
What is Sanstar IPO Investors Portion?

The investors’ portion for QIB is 50%, NII is 15%, and Retail is 35%.
What is Sanstar IPO Size?

Sanstar IPO size is ₹510.15 crores.
What is the Sanstar IPO Price Band?

Sanstar IPO Price Band is ₹90 to ₹95.
What is Sanstar IPO Minimum and Maximum Lot Size?

The minimum bid is 150 Shares with ₹14,250 amount while the maximum bid is 14 shares with ₹199,500.
What is the Sanstar IPO Allotment Date?

Sanstar IPO allotment date is July 24, 2024.
What is the Sanstar IPO Listing Date?

Sanstar IPO listing date is July 26, 2024. The IPO is to be listed on BSE and NSE.