Investing in Sanstar Industries IPO: High Returns or High Risks

NiftyTrader • July 15, 2024

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Sanstar (IPO) opens on July 19, 2024, and closes on July 23, 2024. The allotment for the Sanstar IPO is anticipated to be completed on Wednesday, July 24, 2024. The IPO will be listed on the NSE and BSE, with a tentative listing date set for Friday, July 26, 2024.

The price band for the Sanstar IPO is set at Rs 90 to Rs 95 per share. The IPO is a book-built issue of Rs 510.15 crores, entirely a fresh issue of 4.18 crores shares.

Sanstar IPO Details

IPO Date	July 19, 2024 to July 23, 2024
Listing Date	[.]
Face Value	₹2 per share
Price	₹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)
Issue Type	Book Built Issue IPO
Listing At	BSE, NSE
Shareholding pre-issue	140,444,250
Shareholding post issue	182,244,250
Offer For Sale	11,900,000 shares of ₹2 (aggregating up to ₹113.05 Cr)

Sanstar IPO Lot Size

Application	Lots	Shares	Amount
Retail (Min)	1	150	₹14,250
Retail (Max)	14	2100	₹199,500
S-HNI (Min)	15	2250	₹213,750
S-HNI (Max)	70	10500	₹997,500
B-HNI (Min)	71	10650	₹1,011,750

Sanstar IPO Objectives

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:

Funding the capital expenditure requirement for the expansion of the Dhule Facility;
General Corporate Purpose.
Repayment and/or pre-payment, in part or full, of certain borrowings availed by the Company, and;

About Sanstar Limited

Sanstar Limited, headquartered in Ahmedabad, operates in the food and industrial products sector, offering a wide range of products including dried glucose solids, liquid glucose, maltodextrin, dextrose monohydrate, and native and modified starches derived from maize. These products serve various purposes in different industries: in food products, they function as ingredients, thickeners, stabilizers, sweeteners, emulsifiers, and additives, used in items such as baked goods, confectionery, pasta, soups, ketchup, sauces, creams, and desserts; in pet food products, they are utilized as nutritional ingredients.

Sanstar Limited Financial Information

Sanstar Limited’s revenue decreased by -10.58% and profit after tax (PAT) rose by 59.71% between the financial year ending with March 31, 2024, and March 31, 2023.

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

Sanstar IPO Reservation

Investor Category	Shares Offered
QIB Shares Offered	Not more than 50% of the Net Offer
Retail Shares Offered	Not less than 35% of the Offer
NII (HNI) Shares Offered	Not less than 15% of the Offer

Sanstar IPO Timeline

Sanstar IPO opens on July 19, 2024, and closes on July 23, 2024.

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
A 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

Conclusion

Sanstar Limited’s IPO, opening on July 19, 2024, and closing on July 23, 2024, is a book-built issue with a price band of Rs 90 to Rs 95 per share, aiming to raise Rs 510.15 crores through a fresh issue of 4.18 crores shares. The IPO will be listed on the NSE and BSE with a tentative listing date of July 26, 2024. The funds will be used for capital expenditure for the Dhule facility, general corporate purposes, and debt repayment. Despite a revenue decline of 10.58% from FY 2023 to FY 2024, the company’s profit after tax rose by 59.71%. The allotment will be completed by July 24, 2024, with refunds and share credits processed by July 25, 2024.