Ahmedabad-based company sanstar ltd IPO will open its initial public offerings (IPO) on Friday July 19, 2024. The company’s IPO will stay open until July 22, 2024. Sanstar Ltd aims to raise ₹510.15 crore through this IPO announcement.
On 19th July, 2024 is a important landmark for Sanstar Limited as the company makes its entrance into the stock market through IPO. Here is the summary of the features which can be important for IPO investors.
Company Overview
Sanstar Limited earlier known as Continental Papers Limited was established in 1982 and is situated in Ahmedabad, Gujarat. The company was earlier known as Star paper limited and the company got a new name in the year 2012 and it is Sanstar Limited. Sanstar Limited has established itself as one of the key players in the industry and now it is planning to come up with its IPO so that investors can become a part of its journey.
Sanstar IPO Details (Offer closed)
| IPO Date | July 19, 2024 to July 23, 2024 |
| Listing Date | 26 July, 2024 |
| Face Value | ₹2 per share |
| Price Band | ₹90 to ₹95 per share |
| Overall Subscription | 13.48 |
| 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) |
| Offer for Sale | 11,900,000 shares of ₹2 (aggregating up to ₹113.05 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 140,444,250 |
| Share holding post issue | 182,244,250 |
Sanstar Limited IPO Expected Listing Price
Sanstar IPO’s expected listing price is ₹90-₹120. According to current subscription rate of the IPO the listing price is anticipated at bellow ₹120. The IPO listing date is on 26 July 2024. This IPO offer has been closed at subscription rate of the IPO is13.48x times. Based to the subscription rate the expected Sanstar IPO listing price range between ₹90-₹120.
Sanstar IPO GMP Today
The last updated GMP of the Sanstar IPO is ₹31. The estimated listing price of Sanstar Limited IPO is ₹90-₹95. This price combines the cap price and today’s GMP. This table shows the Sanstar Ltd IPO’s GMP trend of the previous days. The IPO offer has been closed with subscription rate of 13.48 times.
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| Today Gray Market Premium (GMP) of Sanstar IPO is: ₹25 |
| GMP Date | IPO Price | GMP |
| July 26, 2024 | ₹90-₹95 | ₹25 |
| July 25, 2024 | ₹90-₹95 | ₹30 |
| July 24, 2024 | ₹90-₹95 | ₹31 |
| July 23, 2024 | ₹90-₹95 | ₹25 |
| July 22, 2024 | ₹90-₹95 | ₹30 |
| July 21, 2024 | ₹90-₹95 | ₹35 |
| July 20, 2024 | ₹90-₹95 | ₹40 |
| July 19, 2024 | ₹90-₹95 | ₹42 |
| July 18, 2024 | ₹90-₹95 | ₹45 |
| July 17, 2024 | ₹90-₹95 | ₹45 |
Sanstar IPO Share Holding Pattern
| Particulars | Pre-issue | Post-issue |
|---|---|---|
| Promoter | 57.22% | 43.27% |
| Promoter Group | 42.56% | 27.09% |
| Public | 0.22% | 29.63% |
| Total | 100% | 100% |
Sanstar IPO Timeline (Tentative Schedule)
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 |
| 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 |
Sanstar IPO Reservation
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50.00% of the Net offer |
| Retail Shares Offered | Not less than 35.00% of the Offer |
| NII (HNI) Shares Offered | Not less than 15.00% of the Offer |
Sanstar IPO Lot Size
Share investment can be made starting from 150 shares and in lots of that value. The below table explains the minimum and maximum investment done by a retail investor and an HNI in terms of shares and amount.
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 150 | ₹14,250 |
| Retail (Max) | 14 | 2100 | ₹1,99,500 |
| S-HNI (Min) | 15 | 2,250 | ₹2,13,750 |
| S-HNI (Max) | 35 | 5250 | ₹4,98,750 |
| B-HNI (Min) | 71 | 10,650 | ₹1,011,750 |
Sanstar IPO Anchor Investors Details
The Sanstar IPO is Rs 153.05 From the anchor investors, a minimum of Rs. 153.05 crore has to be raised. Sanstar IPO Anchor bid date is July 18, 2024.
| Bid Date | July 18, 2024 |
| Shares Offered | 16,110,000 |
| Anchor Portion Size (In Cr.) | 153.05 |
| Anchor lock-in period end date for 50% shares (30 Days) | August 23, 2024 |
| Anchor lock-in period end date for remaining shares (90 Days) | October 22, 2024 |
Sanstar IPO Promoter Holding
Gouthamchand Sohanlal Chowdhary, Sambhav Gautam Chowdhary and Shreyans Gautam Chowdhary are the promoters of this company.
| Share Holding Pre Issue | 99.77% |
| Share Holding Post Issue | 70.37% |
About Sanstar Limited
Sanstar Limited was incorporated in 1982 and is an Indian company that specializes in the production of specialty plant-based products and ingredients used for food, pet food and other industrial applications.
The company product range is liquid glucose, dried glucose solids, maltodextrin powder, dextrose monohydrate, native maize starches & modified maize starches and germ, gluten, fiber, and fortified proteins which are by-products of the company’s maize milling process.
These products are used in:
Food products: such as, as co-products, gelling agents, stabilizers, sweeteners, emulsifying agents and others for use in baked products, confectionery, pasta products, soups, sauces, ketchup, creams and dessert.
Sanstar Limited Financial Information (Restated Consolidated)
Sanstar Limited’s total operating revenues reduced by -10. 58% while the profit after tax (PAT) was up by 59%. 43% between the FYE March 31, 2024 and, 43% between the FYE 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 |
| Amount in ₹ Crore | |||
Key Performance Indicator
Market capitalization of Sanstar IPO is Rs 1731. 32 Cr.
KPI as of March 31, 2024
| KPI | Values |
| ROE | 30.92% |
| ROCE | 24.43% |
| Debt/Equity | 0.5 |
| RoNW | 30.92% |
| P/BV | 6.18 |
| PAT Margin (%) | 6.17 |
| Pre IPO | Post IPO | |
| EPS (Rs) | 4.75 | 3.66 |
| P/E (x) | 19.98 | 25.93 |
Note:
- The Pre IPO EPS is calculated by taking the Pre issue shareholding as on the date of RHP and the latest FY earnings up to March 31, 2024 disclosed in RHP.
- The Post Issue EPS Contingent on the Post Issue Shareholding with the FY Earnings of March 31, 2024 as mentioned in the RHP.
Objects of the Issue (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:
- Financing the capital expenditure needed for the expansion of the Dhule Facility.
- Repayment and/or pre-payment of certain borrowings that the Company may have obtained, either in part or in full.
- General Corporate Purposes.
Sanstar IPO Review (May apply)
The company is one of the leading producers of speciality products and ingredient solutions for the food processing, animal feed and other industries in India and holds good market status in the global as well as domestic markets. For the reported periods, though it portrayed a scenario of volatility in the top lines, bottom line was on a steady rise. Looking at FY24 super earning the issue appears significantly overpriced. As the demand for its products increases, the management believes that the trends reported and more so after the expansion of capacities, will be enhanced. Sophisticated investors may keep moderate amounts of money for long-term investment.
Sanstar Limited
Located at Sanstar House near Parimal Under Bridge
Opp. Suvidha Shopping Centre, Paldi,
Ahmedabad: 380 007
Phone: +91 79 26651819
Email: [email protected]
Website: https://www.sanstar.in/
Conclusion
Sanstar Limited’s IPO is an important phase in the life of the business and possibly for investors who are interested in the firm. The due diligence is advised by the Red Herring Prospectus which gives detailed information about the IPO so that investors need to look into their needs and their capacity to take risk before investing in IPO.
For further elaborateness, please consult the Red Herring Prospectus for more information which is accessible on this website and through other financial aids.
FAQs
1. What is the IPO price range for Sanstar Ltd?
Sanstar Ltd has fixed the price band at ₹90 to ₹95 per share for its IPO.
2. When is the Sanstar Ltd IPO opening and closing date?
The Sanstar Ltd IPO begins on July 19, 2024, and ends on July 23, 2024 .
3. What is the face value of Sanstar Ltd shares in the IPO?
The face value of each Sanstar Ltd share that was offered in the IPO is ₹2 each .
4. What is the lot size for the Sanstar Ltd IPO?
The lot size for the Sanstar Ltd IPO is 150 shares .
5. What is the total issue size of the Sanstar Ltd IPO?
The total issue size of the Sanstar Ltd IPO comprises 53,700,000 shares, and the total amount is ₹510. 15 crore .