Sanstar IPO:- Sanstar Limited, a leading plant-based specialty products manufacturer, is going to open its IPO for subscription from July 19 to July 23. Investors can participate in this IPO, which aims to raise Rs 510.15 crore through a combination of fresh issue and offer for sale (OFS). The price band for the issue has been fixed at Rs 90-95 per share.
What does Sanstar do?
Sanstar operates mainly in the corn processing industry, producing a range of products like corn starch, liquid glucose, dextrose, maltodextrin, and high fructose corn syrup. These products cater to various sectors, including food, beverages, pharmaceuticals, paper, textiles, and adhesives. The company’s primary goal is to deliver high-quality products and meet the growing demand for corn-based products.
Sanstar Financials
Sunstar reported a remarkable 60% rise in net profit for the financial year ending March 2024, reaching Rs 66.8 crore as compared to Rs 41.8 crore in the previous year. Despite a revenue decline of 11.4%, which came down from Rs 1,205 crore to Rs 1,067.3 crore, the company’s EBITDA grew 35.5% to Rs 98.1 crore, while margins expanded by 319 basis points to 9.2%.
Sanstar IPO
Sunstar’s IPO will see the issuance of 4.18 crore new equity shares worth Rs 397.10 crore, as well as the sale of 1.19 crore shares worth Rs 113.05 crore through an offer for sale (OFS). Key shareholders participating in the OFS include Rani Gautam Chand Chaudhary selling 38 lakh shares, Richa Sambhav Chaudhary and Sameeksha Shreyans Chaudhary selling 33 lakh shares each and Gautam Chand Sohanlal Chaudhary, Sambhav Gautam Chaudhary and Shreyans Gautam Chaudhary selling 5 lakh shares each.
The Ahmedabad-based company has allotted 50% of its shares to qualified institutional buyers (QIBs), 35% to retail investors and 15% to non-institutional investors (high net worth individuals). Additionally, shares worth up to Rs 153 crore from the QIB portion have been reserved for the anchor book, which will be issued on July 18.