Sanstar IPO to debut on the bourses tomorrow; here’s what GMP, subscription status hints ahead of listing

Sanstar IPO listing date has been fixed for Friday, July 26. The issue's share allotment has been finalised. Sanstar IPO allotment process began on Wednesday, July 24. The initial public offering of Sanstar Ltd received overwhelming responses across all segments. On day 3, Sanstar IPO subscription status was 82.99 times, as per data available on BSE.

The initiation of the refund process has commenced today (Thursday, July 25) for individuals not given shares. Those allotted will receive their shares in their demat accounts on the same day itself.

Head of Wealth at Swastika Investmart Ltd. Shivani Nyati saidthat Sanstar Limited, a well-known producer of specialist goods made from maize, is about to go public on the stock market. Strong investor interest in the IPO is evident from the 82.99-times strong subscription rate and the current GMP of ₹27 (28.42%).

Mehta Equities' Prashanth Tapse, a research analyst and senior vice president of research, stated that while valuations were a little on the high side, Sanstar had a good response from investors of all stripes on the last day of the offering. We think that the possibility to participate in one of the top Indian producers of plant-based specialised goods and ingredients made from maize has prompted investor interest.

Let's check what does Sanstar IPO GMP today signal ahead of listing.

Sanstar IPO grey market premium is +27. This indicates Sanstar share price were trading at a premium of ₹27 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 ₹122 apiece, which is 28.42% higher than the IPO price of ₹95.

Today's IPO GMP is rising and suggests a strong listing, based on grey market activity over the last 13 sessions. A study by investorgain.com indicates that the lowest GMP is ₹0 and the highest is ₹44.

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

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.

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