Sanstar raises Rs 153 crore from anchor investors, IPO opens on July 19

Sanstar IPO

Sanstar, the manufacturer of plant-based speciality products and ingredient solutions, has raised Rs 153.04 crore from 12 anchor investors on July 18, a day before the issue opening.

The IPO will open on July 19 and the last day for bidding the issue will be July 23.

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.

In its filing, the company informed exchanges that it has finalised allocation of 1,61,10,000 equity shares to anchor investors at a price of Rs 95 per equity share.

"Out of the total allocation of 1,61,10,000 equity shares to anchor investors, 36,84,450 shares were allocated to two domestic mutual funds through a total of three schemes," it said.

The Ahmedabad-based company aims to mobilise Rs 510.15 crore via initial public offering of 5.37 crore equity shares at the upper end of price band of Rs 90-95 per share. The IPO is a combination of fresh issuance of equity shares worth Rs 397.1 crore by the company, and an offer-for-sale of shares worth Rs 113.05 crore by promoters.

Half of the issue size has been reserved for qualified institutional buyers. Further 35 percent shares are reserved for retail investors and the remainder 15 percent shares for non-institutional investors. Investors can bid for a minimum of 150 equity shares and in multiples of 150 shares thereafter.

The firm will utilise net fresh issue proceeds for the expansion of its Dhule facility at a cost of Rs 181.56 crore. Further, it will spend Rs 100 crore, out of the fresh issue proceeds for repaying debts and the remainder funds for general corporate purposes.

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Sanstar provides several products including liquid glucose, dried glucose solids, maltodextrin powder, dextrose monohydrate, native maize starches, modified maize starches and co-products like germs, gluten, fibre and enriched protein.

Pantomath Capital Advisors is the sole book running lead manager to the issue, while Link Intime India is the registrar.