Mumbai, July 19: The initial public offering (IPO) of Sanstar Ltd opened for subscription today. The issue will close on July 23 and the company has raised ₹153 crore from anchor investors. Ahead of the opening, the company’s shares traded at a GMP of ₹38 in the unlisted market which means a premium of 40% over the issue price. Pantomath Capital Advisors is the book running lead manager to the issue. Link Intime India is the registrar to the offer.
Through the issue, Sanstar aims to raise ₹510 crore which includes a fresh issue of ₹397 crore and an Offer For Sale (OFS) of up to 1.19 crore shares of ₹2 each in which Rani Gouthamchand Chowdhary, Richa Sambhav Chowdhary, Samiksha Shreyans Chowdhary, Gouthamchand Sohanlal Chowdhary, Sambhav Gautam Chowdhary and Shreyans Gautam Chowdhary are offloading their stakes.
The company has fixed a price band of ₹90-95 per share and investors can bid for 150 shares in one lot. In the IPO, about 50% in the IPO is reserved for qualified institutional buyers (QIB), 35% for retail investors and 15% for non-institutional investors.
Net proceeds from the IPO will be used by the company for expanding its Dhule facility, repaying debt and other general corporate purposes.
Sanstar is a major manufacturer of plant-based specialty products and ingredient solutions in India for food, animal nutrition, and other industrial applications.
The company’s 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, among others.
