Sanstar IPO bought 13.47 times on day 2, NII takes lead

Sanstar IPO

The initial public offering of Sanstar continued to garner strong interest from investors, subscribing 13.47 times on July 22, the second day of bidding. The participants picked 50.64 crore equity shares, against the offer size of 3.75 crore shares, the exchange data showed.

The company, which manufactures plant-based speciality products and ingredient solutions for industries such as food, and animal nutrition, aims to raise Rs 510.15 crore via public issue, at the upper end of the price band of Rs 90-95 per share. The IPO is a combination of a fresh issue of 4.18 crore equity shares worth Rs 397.1 crore, and an offer-for-sale of 1.19 crore shares worth Rs 113.05 crore.

Non-institutional investors (high net worth individuals) are leading the charge, picking 32.84 times the portion set aside for them. Retail investors bought 12.14 times the allotted quota and the reserved portion of qualified institutional buyers was subscribed 1.29 times.

The issue was opened on July 19, when it was subscribed 4.16 times.

Sanstar, on July 18, a day before the issue opening, raised Rs 153.04 crore from 12 anchor investors including BofA Securities Europe SA ODI, Societe Generale, Trust Mutual Fund, Bank of India Mutual Fund, SBI General Insurance Company, and Negen Undiscovered Value Fund.

The Ahmedabad-based company will utilise fresh issue proceeds for the expansion of its Dhule facility, and repaying debts. Currently, it operates business through two manufacturing facilities at Dhule in Maharashtra and Kutch in Gujarat.

The public issue will close on July 23.

Sanstar, which competes with Gujarat Ambuja Exports, Gulshan Polyols, and Sukhjit Starch & Chemicals, recorded a net profit of Rs 66.8 crore for fiscal 2024, growing nearly 60 percent compared to Rs 41.8 crore profit in the previous year despite a weak topline. Revenue from operations during the year fell 11.4 percent YoY to Rs 1,067.3 crore.