Sanstar Ltd has filed its draft red herring prospectus (DRHP) with the capital market regulator, Securities and Exchange Board of India (SEBI), for an initial public offering (IPO).
Sanstar Limited, an Ahmedabad-based business, produces plant-based specialty products and ingredient solutions for use in industrial, animal nutrition, and food applications in India.
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The IPO consists of an offer for sale (OFS) by the selling shareholders for up to 8 million shares and a fresh issue of up to 40 million shares. A pre-IPO placement of up to 4 million shares may be considered by the company, subject to consultation with the Book Running Lead Manager (BRLM). A share of the company's equity has a face value of ₹2.
The capital expenditure required for the expansion of the Dhule facility would be funded in part by the fresh issue proceeds up to approximately ₹182 crores, while the remaining net proceeds up to ₹100 crores would be used for particular borrowing repayment and/or prepayment. Net proceeds remaining after expenses would be applied to general corporate needs and issue costs.
On a consolidated basis, the company's revenue during FY 2023 was approximately ₹1,180 crores, its EBITDA was about ₹73 cores, and its Profit After Tax (PAT) was roughly ₹42 crores. The Company's ROE and ROCE were around 28% and 24%, respectively. When compared on a stand-alone basis, revenue, EBITDA, and PAT increased at a CAGR of approximately 57%, 39%, and 71%, respectively, between FY21 and FY23.
Sanstar exports to more than 45 nations in the Middle East, Africa, Asia, Americas, Europe, and Oceania. Exports account for more than 30% of the company's total revenue. The company's Kutch facility is registered with the US Food and Drug Administration (USFDA), which is noteworthy.
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