Sanstar Limited
Sanstar Limited’s Initial Public Offering to open on Friday, July 19, 2024, price band set at ₹90/- to ₹95/- per Equity Share
Mumbai, July 15, 2024: Sanstar Limited is one of the major manufacturers of plant-based speciality products and ingredient solutions in India for food, animal nutrition and other industrial applications (Source: Company Commissioned Frost & Sullivan Report, dated May 18, 2024), has fixed the price band of ₹90/- to ₹95/- per Equity Share of face value ₹2/- each for its maiden initial public offer. The Initial Public Offering (“IPO” or “Offer”) of the Company will open on Friday, July 19, 2024, for subscription and close on Tuesday, July 23, 2024. Investors can bid for a minimum of 150 Equity Shares and in multiples of 150 Equity Shares thereafter.
The IPO consists of Fresh Issue of up to 41.80 million Equity Shares and an Offer for Sale (“OFS”) of up to 11.90 million Equity Shares by the Promoter Selling Shareholders and Promoter Group Selling Shareholders.
The proceeds from the fresh issue to the extent of Rs 181.55 crore will be utilized for funding the capital expenditure requirement for expansion of its Dhule Facility, Rs 100 crore for repayment and/or pre-payment, in part or full, of certain borrowings availed by the Company and general corporate purposes.
The Ahmedabad-based company offers a range of products such as liquid glucose, dried glucose solids, maltodextrin powder, dextrose monohydrate, native maize starches, modified maize starches, and co-products including germs, gluten, fiber, and enriched protein, among others. Their specialty products and ingredient solutions add taste, texture, nutrients and increased functionality to foods as ingredients, thickening agents, stabilizers, sweeteners, emulsifiers and additives (in bakery products, confectionery, pastas, soups, ketchups, sauces, creams, deserts, amongst others), animal nutrition products as nutritional ingredients, and other industrial products as disintegrants, excipients, supplements, coating agents, binders, smoothing & flattering agents, finishing agents, among others.
Sanstar operates two manufacturing facilities covering a total area of 10.68 million square feet (approximately 245 acres) situated in Dhule, Maharashtra, and Kutch, Gujarat. It has an installed capacity of 3,63,000 tons per annum (1,100 tons per day) as of May 18, 2024, according a Company Commissioned Frost & Sullivan report and ranks amongst the leading top 5 manufacturers of maize-based specialty products and ingredient solutions in India.
The Company exports its products to 49 countries across Asia, Africa, the Middle East, the Americas, Europe, and Oceania and has established its presence across India, distributing its products to 22 states.
Sanstar’s revenue from operations has increased at a CAGR of 45.46% from ₹ 504.40 crore in Fiscal 2022 to ₹ 1,067.27 crore in Fiscal 2024 while their profit after tax has grown at a CAGR of 104.79% from ₹ 15.92 crore in Fiscal 2022 to ₹ 66.77 crore in Fiscal 2024, on the basis of its restated consolidated financial statements.
Pantomath Capital Advisors Private Limited is the sole book running lead manager and Link Intime India Private Limited is the registrar to the Offer. The Equity Shares are proposed to be listed on BSE and NSE.
Notes for Reference:
Issue Size of the IPO based on the upper and lower end of the price band
| Fresh (41,800,000 equity shares) | OFS (11,900,000 equity shares) | Total |
Lower Band (@Rs 90) | Rs 376.20 crore | Rs 107.10 crore | Rs 483.30 crore |
Upper Band (@Rs 95) | Rs 397.10 crore | Rs 113.05 crore | Rs 510.15 crore |
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