Sanstar IPO Details: Price Band, Subscription Dates, and More

Sanstar IPO: A Plant-Based Specialized Goods Firm Enters the Market

Sanstar Ltd, a plant-based specialized goods firm, has opened its initial public offering (IPO) for subscription, with a price band of ₹90 to ₹95 per equity share. The IPO, which aims to raise ₹510 crore, will close on July 23. Prior to the IPO, the company raised ₹153 crore from anchor investors.

The IPO consists of a new issue of 4.18 crore shares and an offer for sale (OFS) of 1.19 crore shares by selling shareholders. The proceeds from the IPO will be used to pay off debt, fund capital investment for expanding the company’s Dhule plant, and for general corporate purposes.

Sanstar Ltd is one of the leading producers of plant-based specialty goods and ingredient solutions in India. The company’s manufacturing facilities in Maharashtra and Gujarat cover a total area of 10.68 million square feet. With a focus on sustainability and automation, the company’s Dhule facility is the newest and most advanced.

The promoters of Sanstar Ltd, Gouthamchand Sohanlal Chowdhary, Sambhav Gautam Chowdhary, and Shreyans Gautam Chowdhary, collectively own 57.22% of the equity share capital. The company’s listed peers include Gujarat Ambuja Exports Ltd, Gulshan Polyols Ltd, and Sukhjit Starch and Chemicals Ltd.

Investors considering subscribing to the Sanstar IPO should be aware of key risks, such as the company’s dependence on raw material suppliers and specific industries for its products. Additionally, the lock-in period for equity shares allotted to anchor investors is set at 90 days for 50% of the shares and 30 days for the remaining 50%.

Overall, Sanstar Ltd’s financial performance has shown significant growth, with revenue increasing at a CAGR of 45.46% and profit after tax growing at a CAGR of 104.79% between fiscal years 2022 and 2024.

Investors are advised to consult with certified experts before making any investment decisions. The Sanstar IPO presents an opportunity for investors to participate in the growth of a leading player in the plant-based specialty goods industry.