Sanstar IPO opens tomorrow: GMP, issue details, 10 key things to know

Sanstar IPO opens for subscription on tomorrow (Friday, July 19). The company is among India's top manufacturers of plant-based speciality products and ingredient solutions for use in food, industrial, and animal nutrition applications. With an installed capacity of 3,63,000 tons annually (1,100 tons per day), the firm ranks fifth in India for the production of specialty goods and ingredient solutions based on maize. This information comes from Frost & Sullivan. The company's two production facilities are situated in the states of Gujarat (Kutch) and Maharashtra (Dhule), with a combined size of 10.68 million square feet (about 245 acres).

As of March 31, 2024, the firm employed 10 people in its in-house research and development (R&D) team, with a minimum of forty years of combined expertise among them. With 2,200 square feet of space dedicated to research and testing, their R&D center is fully furnished.

Prior to packing and shipping to clients, their products go through quality assurance and testing procedures. They have 27 employees in their quality control and assurance team. The testing and quality team performs a variety of tests on the final goods, including but not limited to microbiological, sugar profile, nitrogen analysis, and carbohydrate analysis, depending on the kind and nature of the product.

The company's clientele has expanded over time to include companies in the food, animal nutrition, and other industrial applications of pharmaceuticals, paper, textile, adhesives, and personal care, among other industries.

According to the restated consolidated financial statements, their revenue contribution from the top 10 and top 20 customers has been decreasing. For their top 10 customers, this decline was from 73.87% in fiscal 2022 to 40.53% in fiscal 2024, and for their top 20 customers, this decline was from 83.24% in fiscal 2022 to 53.59% in fiscal 2024.

Here are the 10 key things to know about Sanstar IPO:

Sanstar IPO date: The IPO opens for subscription on Friday, July 19, and closes on Tuesday, July 23.

Sanstar IPO price band: The IPO's price band has been fixed in the range of ₹90 to ₹95 per equity share of face value of ₹2.

Sanstar IPO lot size: The IPO's lot size is 150 equity shares and in multiples of 150 equity shares thereafter.

Anchor investors: The allocation to anchor investors for Sanstar IPO is scheduled to take place today (Thursday, July 18).

Sanstar IPO details: The company wants to raise ₹510.15 crore through its initial public offering. The IPO consists of two parts: a new issuance of 4.18 crore equity shares valued at ₹397.1 crore by the business, and an offer-for-sale (OFS) of 1.19 crore shares priced at ₹113.05 crore by the promoters.

Sanstar IPO objective: The net proceeds of the new issuance are expected to be used for general corporate purposes, repayment and/or prepayment of some or all of the company's borrowed funds, and funding the capital expenditure required to extend the Dhule Facility.

Sanstar IPO listing and allotment details: 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's share price is probably going to be posted on the BSE and NSE.

Lead Manager and Registrar of Sanstar IPO: The registrarof the Sanstar IPO is Link Intime India Private Ltd, while the book running lead manager is Pantomath Capital Advisors Pvt Ltd.

Sanstar IPO reservation: 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 IPO GMP today: Sanstar IPO grey marker premium is +39. This indicates Sanstar share price were trading at a premium of ₹39 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 ₹134 apiece, which is 41.05% higher than the IPO price of ₹95.

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

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