Sanstar IPO booked 4.16 times on the first day of bidding; NIIs steal the show; check GMP, subscription status

Sanstar IPO subscription status: In just a few hours after its launch today (Friday, July 19), the plant-based specialty goods firm Sanstar's initial public offering received full subscriptions led by non-institutional investors (NIIs) and retail investors. Sanstar IPO subscription status was 4.16 times, as per BSE data.

The initial share sale received bids for 15,62,64,450 shares against 3,75,90,000 shares on offer, as per BSE data.

The quota for NIIs received 9.85 times subscription while the retail portion got subscribed 4.07 times. The category for QIBs portion is booked 5%.

The company has set aside 15% of its shares for non-institutional institutional investors (NII), 50% of its shares for qualified institutional buyers (QIB), and 35% of the offer for retail investors.

Sanstar Ltd, a manufacturer of specialty plant-based goods, stated on Thursday that it had received Rs153 crore from anchor investors. Global financial institutions, domesticmutual funds, significant insurance and non-banking financial firms (NBFCs), treasuries, alternative investment funds (AIFs), and international portfolio institutions are all included in Sanstar's varied anchor book.

The firm, headquartered in Ahmedabad, is a leading producer of specialty goods and ingredient solutions derived from plants in India.

Specialty goods and ingredients from the firm enhance food's flavour, texture, nutritional value, and usability as ingredients, thickeners, stabilisers, and sweeteners, among other uses.

Sanstar IPO price band has been fixed in the range of ₹90 to ₹95 per equity share of face value of ₹2. The IPO's lot size is 150 equity shares and in multiples of 150 equity shares thereafter. The issue ends on Tuesday, July 23.

The Sanstar IPO basis for share allocation is expected to be finalised on Wednesday, July 24. Refunds will be started by the firm on Thursday, July 25, and the shares will be paid to the allottees' demat accounts the same day as the refund. On Friday, July 26, Sanstar share price is likely going to be listed on the BSE and NSE.

Sanstar IPO details

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 GMP today

Sanstar IPO grey marker premium is +37. This indicates Sanstar share price were trading at a premium of ₹37 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 ₹132 apiece, which is 38.95% higher than the IPO price of ₹95.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

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