Sanstar IPO: Ahmedabad-based firm garners ₹153 crore from anchor investors ahead of public issue

Ahmedabad-based Sanstar Limited, on Thursday, garnered ₹153 crore from anchor investors ahead of its initial public offering, which opens for public subscription on Friday, July 19, 2024.

The company informed the stock exchanges that it has allocated 1,61,10,000 equity shares at ₹95 per share to anchor investors on Thursday, July 18, 2024.

Sanstar Limited's diverse anchor book includes 13 anchor investors, featuring global financial institutions, domestic mutual funds, large insurance and NBFC treasuries, AIFs, and foreign portfolio institutions.

BOFA Securities (Division of Bank of America), Societe Generale, BOI Mutual Fund, Trust Mutual Fund, SBI General Insurance, Gagandeep Credit Capital, Chhattisgarh Investments, Negen Undiscovered Value Fund, SB Opportunities Fund, Finavenue Capital Trust, Intuitive Alpha Fund and Minerva Emerging Fund were the participants of the anchor round.

Sanstar Limited is a leading manufacturer of plant-based specialty products and ingredient solutions in India, catering to the food, animal nutrition, and various industrial sectors. Their products are utilized in a wide range of applications, including custards, desserts, sauces, instant foods, tablets, baked goods, confectioneries, pastas, soups, mayonnaise, cream fillings, gravies, tomato ketchup, creams, dairy desserts, candies, syrups, ready-to-eat sweets, and bakery items.

Sanstar IPO details

The company plans to launch its IPO of equity shares on Friday, July 19, 2024, with the offering closing on Tuesday, July 23, 2024. The price band for the IPO has been set between ₹90 and ₹95 per equity share, potentially raising ₹510.15 crore at the upper end of the price range.

The IPO includes a fresh issue of up to 41.80 million equity shares and an offer for sale (OFS) of up to 11.90 million equity shares by the promoter and promoter group selling shareholders.

Sanstar plans to allocate ₹181.6 crore from the net fresh issue proceeds towards expanding the Dhule facility. An additional ₹100 crore will be used to repay debts, which totaled ₹164.23 crore as of May 24 this year. The remaining funds will be used for general corporate purposes.

Investors can place bids for a minimum of 150 equity shares, with subsequent bids in multiples of 150 shares.

The offer is structured through the Book Building Process. Up to 50 per cent of the offer will be allocated to Qualified Institutional Buyers, at least 15 per cent to Non-Institutional Bidders, and a minimum of 35 per cent to Retail Individual Bidders.