(CTN News) – Investors received Sanstar Limited’s July 19 Sanstar IPO well. The $510.15-crore initial public offering (IPO) garnered 13.53 times subscription up until 5:30 pm on Monday, July 22. Bids were received for 50,86,31,850 shares against 3,75,90,000 shares.
According to the most recent data, retail quota subscriptions were made 12.23 times, while non-institutional investors made 32.88 times. 1.29 percent of QIB subscriptions were made.
Retail and non-institutional investors’ quotas were filled in two hours of Friday’s bidding. The issue will close on July 23.
The Sanstar IPO pricing range is Rs 90–Rs 95 per.
Sanstar is expected to finish its IPO allotment on Monday, July 24, and list on the BSE and NSE on July 26.
For 150 equity shares and multiples, investors must apply. Retail investors therefore need to put in Rs 14,250 [150 (lot size) x Rs 95 (highest price band).
Sanstar’s current IPO GMP
According to market watchers, unlisted Sanstar Ltd. shares are trading on the gray market for Rs 29 higher than their issue price. A 30.53 percent listing gain at Rs 29 GMP is anticipated by the grey market following the public offering. The state of the market affects the GMP.
Investors’ readiness to pay more than the issue price is shown by the “grey market premium.”
Analyst advice for Sanstar IPO
The majority of experts rank the Sanstar IPO as “Subscribe” due to its increasing potential.
Sanstar intends to pay down its debt, enhance its balance, and build capacity to support expansion, according to Master Capital’s IPO statement. Capacity will nearly triple following expansion, creating substantial growth potential. The growth capital has started, and the capacity is 90% full.
In the Sanstar IPO note, Master Capital said, “We advise to Subscribe to the IPO keeping a long term view, given the growth prospects.” “The valuation of the Sanstar IPO is at par with the listed peers.”
“Sanstar’s financial performance presents a mixed picture, with recent revenue declines but growth in profitability,” Swastika stated in its IPO letter. But certain significant issues require careful consideration. Price swings for raw materials, instability in the world market, intense competition, and a deficiency of products besides maize-based ones pose a threat to future growth.
IPOs appear to be fairly valued at 20x P/E. We acknowledge that listing benefits may occur, but we advise caution due to the risks. Therefore, in order to maximize listing benefit, we advise a subscribe rating for this IPO, wrote Swastika.
Sanstar Limited is a well-known Indian company that provides ingredient solutions and specialty items based on maize to a wide range of global industries. The company boasts strategically positioned, sustainable manufacturing facilities and a wide and diverse customer base.
Information on Kataria Industries’ Sanstar IPO
The planned IPO of the Ahmedabad-based company consists of a 1.19 crore share OFS in addition to a 4.18 crore share fresh issue. The Sanstar IPO size in the highest price band is Rs 510.15 crore.
On July 18, the day before the Sanstar IPO, anchor investors gave Sanstar Ltd. Rs 153 crore. A BSE circular states that the company has distributed 1.61 million equity shares, valued at Rs 95 per, to thirteen funds, for a total of Rs 153 crore.
A portion of the proceeds from the present offering would be used for general corporate purposes, Rs 100 crore for debt settlement, and Rs 181.55 crore for capital expenditures related to the expansion of the Dhule facility.
India’s Sanstar IPO makes plant-based products.
Foods are given taste, texture, nutrients, and functioning by the company’s specialized products, which also serve as thickeners, stabilisers, and sweeteners.
1,100 tonnes may be produced every day at its two plants in Kutch, Gujarat, and Dhule, Maharashtra.
The company sells to 49 countries in Asia, Africa, the Middle East, the Americas, Europe, and Oceania. In addition, it distributes goods to 22 Indian states.
Sanstar’s profit after taxes increased to Rs 66.77 crore from Rs 15.92 crore, while its operations income increased by 45.46 percent to Rs 1,067.27 crore in FY24 from Rs 504.40 crore in FY22.
Investors may bid on 150 equity shares at a time.
Pantomath Capital Advisors is the only book-running lead manager for the Sanstar IPO. The company’s equity shares are being proposed for listing on the BSE and NSE.
SOURCE: NN
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