IPO

Sanstar Limited IPO

Mainboard

Other Agricultural Products

Listed On: Jul 26, 2024 at ₹ 109.0(NSE)

₹ 14250 /150 Shares

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Price Summary

Last Closing

127.55 (34.26%)

52 Week High

158.80

52 Week Low

104.95

Last Update

6-Dec-2024 3:30 PM
Sanstar Limited IPO Details

19 Jul, 2024

Open Date

23 Jul, 2024

Close Date

24 Jul, 2024

Allotment Date

26 Jul, 2024

Listing Date

Issue Price

₹90-95 per equity share

Face Value

₹2 Per Equity Share

Listing at Group

BSE, NSE

Registrar

Link Intime India Private Ltd

List Price

109.0(NSE)

Listing Date

2024-07-26

Market Lot

Retail : 150 Shares (₹14,250/-)
S-HNI : 2,250 Shares (₹2,13,750/-)
B-HNI : 10,650 Shares (₹10,11,750/-)

Lead Manager

Pantomath Capital Advisors Pvt Ltd

Issue Size

Total ₹510.15 Cr :
#Fresh Issue : 41,800,000 shares(aggregating up to ₹397.10 Cr) +
#OFS : 11,900,000 shares of ₹2(aggregating up to ₹113.05 Cr)

Retail Portion

35% (Number of Retail Applications: 1,25,300 Approx),
(Number of S-HNI Applications : 1,193 Approx),
(Number of B-HNI Applications : 2,387 Approx)

Subscription

82.91 times

Sanstar Limited IPO Subscription Details

As onQIBNII
bNII   sNII
RetailTotal
Shares Offered / Reserved10,740,0008,055,000
5,370,000    2,685,000
18,795,00037,590,094
Day 1 - 19-07-24 05:00 PM0.05 x9.85
10.73 x   8.07 x
4.07 x4.16 x
Day 2 - 22-07-24 05:00 PM1.29 x32.85
31.99 x   34.55 x
12.15 x13.48 x
Day 3 - 23-07-24 05:00 PM145.68 x136.42
149.44 x   110.39 x
24.10 x82.91 x
Total No. of Applications: 27,62,240 (Approx)
Retail Subscription on the basis of Applications: Retail:20.57x BHNI:30.17x SHNI:105.85x times

Sanstar Limited Valuations

EPS Pre IPO

₹4.75/-

EPS Post IPO

₹3.66/-

P/E Pre IPO

19.98

P/E Post IPO

25.93

RoNW

30.92%

Sanstar Limited Company Financials All values are in ₹ Cr.

31-Mar-2431-Mar-2331-Mar-22
Assets527.57368.35207.45
Revenue1,081.681,209.67504.77
Profit After Tax66.7741.8115.92
Net Worth215.91149.2848.97
Reserves & Surplus225.18158.4155.69
Total Borrowing127.64111.7085.22

About The Company

Sanstar Limited manufactures specialty plant-based products and ingredient solutions for food, pet food and other industrial applications in India.

The company's product portfolio includes liquid glucose, dried glucose solids, maltodextrin powder, dextrose monohydrate, native maize starches, modified maize starches, and by-products such as germ, gluten, fiber and fortified proteins.

These products are used in:
Food products: as ingredients, thickeners, stabilizers, sweeteners, emulsifiers, and additives (including in baked goods, confectionery, pasta, soups, ketchup, sauces, creams and desserts);
Pet food products: as nutritional ingredients
Other industrial products: as disintegrants, excipients, supplements, coating agents, binders, smoothing and flattering agents, and refining agents.

The company has two manufacturing facilities covering a total area of 10.68 million square feet (approx 245 acres) at Dhule in the state of Maharashtra and Kutch in the state of Gujarat. With an installed capacity of 3,63,000 tons per annum (1,100 tons per day), the company is the fifth largest manufacturer of corn-based specialty products and ingredients in India.

The company exports its products to companies in 49 countries including Asia, Africa, the Middle East, America, Europe and Oceania. The company also has a pan-India presence where its products are sold in 22 states.As of March 31,2024, the company employed 271 people (including 60 permanent employees) at its plants in Kutch and Dhule and at its headquarters.

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Sanstar Limited - Strength and Weakness

Strength

Sanstar Limited has demonstrated impressive growth, with a Revenue and PAT CAGR of 57% and 71% respectively over Fiscal 2021-2023, indicating strong operational efficiency and market acceptance.

The company operates two major facilities in Gujarat and Maharashtra with a combined installed capacity of 3,63,000 tons per annum, enabling large-scale production and supply capabilities.

Sanstar Limited exported to 49 countries across multiple continents in the first half of Fiscal 2023, showcasing its broad international presence and acceptance of its speciality products.

The Dhule facility features state-of-the-art automation with SCADA and PLC systems, which enhances production efficiency and quality while minimising costs and errors.

Weakness

Sanstar Limited lacks fixed contracts for maize procurement, its primary raw material, making it vulnerable to price fluctuations and supply disruptions. This instability could severely impact their profitability as raw material costs constituted up to 85.71% of their expenses in recent fiscal periods.

The company requires substantial working capital to purchase and store maize during its peak arrival season. Insufficient funds during this critical time could hinder operations, as they spent ₹2,970.83 million to ₹6,025.94 million annually on raw materials.

Ongoing litigation could adversely affect the company if resolved unfavourably. Legal proceedings increase potential liabilities and expenses, potentially damaging the company's financial health and market reputation.

The recent amalgamation with Sanstar Biopolymers and the acquisition of ECL could lead to integration challenges. Discrepancies in financial statements or operational hurdles post-merger may affect overall business performance.

Sanstar Limited - Peers Comparison

P/B RatioP/E RatioRoNWNet Worth
Sanstar Limited2.8225.930.9%1,081
Gujarat Ambuja Exports2.2418.013.3%4,927
Gulshan Polyols2.1671.83.05%1,378
Sukhjit Starch and Chemicals1.4214.310.3%1,375

Sanstar Limited - Promoter(s)

Pre Issue Share Holding: 99.77%

Post Issue Share Holding: 70.37%


Company Promoter(s)
  1. Gouthamchand Sohanlal Chowdhary
  2. Sambhav Gautam Chowdhary
  3. Shreyans Gautam Chowdhary

Sanstar Limited IPO - Issue Objectives

  1. Funding the capital expenditure requirement for the expansion of the Dhule Facility
  2. Repayment and/or pre-payment, in part or full, of certain borrowings availed by the Company
  3. General Corporate Purposes.

Sanstar Limited IPO - Anchor Investors

Sanstar raises Rs 153 crore from anchor investors.

Five institutional investors such as Societe Generale, BofA Securities Europe SA ODI, Bank of India Mutual Fund, Trust Mutual Fund, and SBI General Insurance Company invested Rs 70 crore in the anchor book.

Among others, Gagandeep Credit Capital, Negen Undiscovered Value Fund, Intuitive Alpha Investment Fund, Chattisgarh Investments, Minerva Emerging Opportunities Fund, SB Opportunities Fund, and Finavenue Capital Trust bought shares worth Rs 83.04 crore.

Other Details

Company Contact Details

Sanstar Limited

Sanstar House, near Parimal Under Bridge, Opp. Suvidha Shopping Centre, Paldi, Ahmedabad – 380 007

Phone: +91 79 26651819

Email: cs@sanstar.in

Website: https://www.sanstar.in/

Registrar Contact Details

Link Intime India Private Ltd

Phone: +91-22-4918 6270

Email: sanstar.ipo@linkintime.co.in

Website: https://linkintime.co.in/initial_offer/public-issues.html

Sanstar Limited IPO - FAQs

Ans. Sanstar Limited IPO is a Mainboard IPO. The issue is priced at ₹90-95 per equity share. The minimum order quantity is 150 Shares. The IPO opens on Jul 19, 2024, and closes on Jul 23, 2024. Link Intime India Private Ltd is the registrar for the IPO. The shares are proposed to be listed on BSE, NSE.

Ans. The Sanstar Limited IPO opens on Jul 19, 2024 and closes on Jul 23, 2024.

Ans. The size of Sanstar Limited IPO is Total ₹510.15 Cr : #Fresh Issue : 41,800,000 shares(aggregating up to ₹397.10 Cr) + #OFS : 11,900,000 shares of ₹2(aggregating up to ₹113.05 Cr).

Ans. The IPO price band is set between ₹90-95 per equity share.

Ans. To apply for Sanstar Limited IPO IPO, follow the steps given below:

  • - Open the IPO Ji App or Website
  • - Find Sanstar Limited IPO in the List of IPOs
  • - Press "Apply" Button
  • - Select Your Demat Account
  • - Select Your Shares Quantity and Submit
  • - Track Your IPO Status

Ans. The share allotment date of Sanstar Limited IPO is Jul 24, 2024.

Ans. The Sanstar Limited IPO will be listed on Jul 26, 2024.

Ans. Follow the steps to check the allotment status for Sanstar Limited IPO here.