Sanstar IPO: Issue subscribed 13.48 times on the second bidding day led by NIIs. Check GMP, subscription status

Sanstar IPO subscription status: The second bidding day of Sanstar Ltd's initial public offering followed a similar trend as the first day, with non-institutional investors (NII) leading the way with large subscription numbers, followed by retail investors expressing a strong interest in the issue. On the second day, qualified institutional buyers (QIBs) began to participate as well. Sanstar IPO subscription status was 13.48 times, as per BSE data.

The initial share sale got bids for 50,66,83,650 shares versus 3,75,90,000 shares on offer, according to BSE data.

Non-institutional investors subscribed 32.85 times, while retail individual investors subscribed 12.15 times. The component for qualified institutional buyers received a 1.29 times subscription.

On the first bidding day on Friday, July 19, the issue was booked 4.16 times. The NII quota garnered 9.85 times more subscribers than the retail portion, which received 4.07 times more. QIBs were booked at 5%.

The business has allocated 15% of its shares for NIIs, 50% for QIBs, and 35% for retail investors.

Sanstar Ltd is a speciality products and ingredients solutions add taste, texture, nutrients, and increased functionality to (i) foods as ingredients, thickening agents, stabilizers, sweeteners, emulsifiers, and additives (in bakery products, confectionery, pastas, soups, ketchups, sauces, creams, deserts, among others), (ii) animal nutrition products as nutritional ingredients, and (iii) other industrial products as disintegrants, excipients, supplements, coating agent.

The firm has two production sites, totalling 10.68 million square feet, located in Dhule, Maharashtra, and Kutch, Gujarat.

It has an in-house Research & Development staff of 10 people as of March 31, 2024, with a combined expertise of at least 40 years. The primary raw material used to manufacture the Company's goods is'maize'.

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 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 GMP today

Sanstar IPO grey marker premium is +28. This indicates Sanstar share price were trading at a premium of ₹28 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 ₹123 apiece, which is 29.47% 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.'

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