Sanstar IPO subscription status: Sanstar's initial public offering obtained full subscriptions mere hours after it was launched on Friday, July 19, spearheaded by non-institutional investors (NIIs) and retail investors. According to BSE statistics, the subscription status for Sanstar's IPO was 4.16 times.
The NII quota drew 9.85 times more subscriptions than the retail part, which garnered 4.07 times more. QIBs was booked at 5%.
The firm has reserved 15% of its shares for NII, 50% for QIB, and 35% of the offer for retail investors.
SanstarIPO price band has been set at ₹90 to ₹95 per equity share with a face value of ₹2. The SanstarIPOlot size is 150 equity shares, followed by multiples of 150 equity shares. The issue closes on Tuesday, July 23.
Sanstar IPO share allocationbasis is likely to be finalised on Wednesday, July 24. The company will begin refunds on Thursday, July 25, and shares will be transferred to allottees' demat accounts on the same day. On Friday, July 26, Sanstar share price is likely going to be listed on the BSE and NSE.
Sanstar Ltd, a maker of specialist plant-based items, announced on Thursday that it obtained ₹153 crore from anchor investors. Sanstar's diverse anchor portfolio includes global financial institutions, local mutual funds, major insurance and non-banking financial businesses (NBFCs), treasuries, alternative investment funds (AIFs), and foreign portfolio institutions.
The company, based in Ahmedabad, is a prominent manufacturer of specialty items and ingredient solutions produced from Indian plants.
The firm's specialty goods and ingredients improve the flavour, texture, nutritional content, and usability of food as ingredients, thickeners, stabilisers, and sweeteners, among other applications.
According to the brokerage, Sanstar has the fifth-largest capacity in the Indian maize-based speciality goods and ingredient solutions sector. The Dhule plant is on track to increase capacity by 1,000 tons per day.
In the previous three fiscal years, the firm has seen constant increase in several financial measures such as sales, profitability, cash flows, and returns, as well as an improvement in its balance sheet position. As we move forward, Sanstar's financial performance is fuelled by its established market position in the industry, growing global footprint, high entry barriers, expanded manufacturing capacities to capture additional market share, and long-term customer relationships, which allow it to capitalise on significant opportunities in existing and future products. The issue is priced at 20.0x on the upper price range based on FY24 profits, which is considered fair. As a result, the brokerage recommends a SUBSCRIBE rating for the topic.
According to the brokerage, Sanstar Ltd is poised for robust growth, driven by increased worldwide demand for plant-based goods and strategic capacity development at its Dhule factory. The company's concentration on high margin value-added goods and new launches for specialised industries will drive margin expansion while also reducing debt. At the upper band price of ₹95, the issue is worth 25.9x P/E based on FY24 EPS of ₹3.66 (post issue). The brokerage recommends that you "subscribe for long term" to the issue.
Through its IPO, the company aims to raise ₹510.15 crore. The IPO consists of an offer-for-sale (OFS) of 1.19 crore shares valued at ₹113.05 crore by the promotersand a fresh issue of 4.18 crore equity shares valued at ₹397.1 crore by the firm.
Richa Sambhav and Samiksha Shreyans Chowdhary will each be selling 33 lakh shares via OFS, while Rani Gouthamchand Chowdhary will be selling 38 lakh equity shares through the OFS. The other selling shareholders among the promoters are Gouthamchand Sohanlal Chowdhary, Sambhav Gautam Chowdhary, and Shreyans Gautam Chowdhary, who are each offloading 5 lakh shares.
The proposed uses of the net proceeds of the new issue include financing the capital expenditure needed to expand the Dhule Facility, repaying and/or prepaying, in full or in part, some of the company's borrowed funds, and general corporate purposes.
The sole book running lead manager is Pantomath Capital Advisors Private Ltd, and the offer's registraris Link Intime India Private Ltd.
Sanstar IPO grey marker premium is +30. This indicates Sanstar share price were trading at a premium of ₹30 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Sanstar share price was indicated at ₹125 apiece, which is 31.58% higher than the IPO price of ₹95.
Based on grey market activity over the previous ten sessions, today's IPO GMP is heading upward and anticipates a solid listing. According to investorgain.com analysis, the lowest GMP is ₹0, and the maximum is ₹44.
'Grey market premium' indicates investors' readiness to pay more than the issue price.'
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
