Sanstar IPO subscription status: The last bidding day for Sanstar Ltd's initial public offering garnered an overwhelming response from Qualified Institutional Buyers (QIBs). Non-institutional investors (NIIS) responded well on the third day, followed by retail investors. Sanstar IPO subscription status was 82.99 times, as per BSE data.
The offering got bids of 3,11,94,96,150 shares against an offer of 3,75,90,000 equity shares at a price band of ₹90-95.
QIBs booked 145.68 times, while NIIs subscribed 136.50 times. Retail investors subscribed 24.23 times.
The second bidding day of Sanstar IPO followed a similar trend to the first, with NII leading the way with large subscription numbers, followed by retail investors who expressed strong interest in the issue. On the second day, the issue was booked 13.48 times, and on the first day Sanstar IPO subscription status was 4.16 times.
The company has set aside 15% of its shares for NIIs, 50% for QIBs, and 35% for regular investors. Sanstar raised ₹153 crore from anchor investors.
Sanstar Ltd specialises in plant-based specialist goods and new ingredient solutions. They are India's fifth-largest manufacturer of maize-based specialty products and ingredient solutions. With an installed capacity of 3,63,000 tons per year, they serve the food industry, animal nutrition, and a wide range of industrial applications.
The Sanstar IPO basis for share allocation is likely to be finalised on Wednesday, July 24. The company will begin refunds on Thursday, July 25, and shares will be deposited into 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.
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 promoters and 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 +31. This indicates Sanstar share price were trading at a premium of ₹31 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 ₹126 apiece, which is 32.63% higher than the IPO price of ₹95.
Based on grey market activity over the previous 11 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.'
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