Sanstar Ltd Secures Rs 153 Crore from Anchor Investors as IPO Draws Near

Plant-based speciality products company Sanstar Ltd has successfully raised Rs 153 crore from anchor investors just a day before its initial public offering (IPO) opens for public subscription. The diverse anchor book includes global financial institutions, domestic mutual funds, large insurance companies, non-banking financial companies (NBFCs) treasuries, alternative investment funds (AIFs), and foreign portfolio institutions.

Sanstar Ltd Secures Rs 153 Crore from Anchor

Sanstar Ltd Secures Rs 153 Crore from Anchor

Key investors allocated shares in the anchor round include BOFA Securities, Societe Generale, BOI Mutual Fund, Trust Mutual Fund, SBI General Insurance Company, Gagandeep Credit Capital, Chhattisgarh Investment, Negen Undiscovered Value Fund, SB Opportunities Fund, Finavenue Capital Trust, Intuitive Alpha Fund, and Minerva Emerging Fund.

According to a circular on the BSE website, Sanstar has allocated 1.61 crore equity shares to 13 funds at Rs 95 each, totaling Rs 153 crore.

The Rs 510-crore IPO, priced between Rs 90 and Rs 95 per share, will open on July 19 and close on July 23. The IPO consists of a fresh issue of 4.18 crore shares and an offer for sale (OFS) of 1.19 crore shares. At the upper price band, the IPO size is pegged at Rs 510.15 crore.

Proceeds from the fresh issue will be utilized as follows:

  • Rs 181.55 crore for capital expenditure to expand the Dhule facility
  • Rs 100 crore for debt repayment
  • The remaining funds for general corporate purposes

Sanstar Ltd Secures Rs 153 Crore from Anchor

Sanstar Ltd, a major player in the plant-based speciality products industry in India, manufactures ingredients that enhance taste, texture, nutrients, and functionality in foods, serving as ingredients, thickening agents, stabilizers, and sweeteners. The company operates two manufacturing facilities in Dhule, Maharashtra, and Kutch, Gujarat, with a total installed capacity of 1,100 tonnes per day.

Sanstar exports its products to 49 countries across Asia, Africa, the Middle East, the Americas, Europe, and Oceania. Domestically, it distributes products across 22 states.

The company’s revenue from operations has shown impressive growth, with a CAGR of 45.46%, increasing from Rs 504.40 crore in FY22 to Rs 1,067.27 crore in FY24. Profit after tax has also risen from Rs 15.92 crore in FY22 to Rs 66.77 crore in FY24.

Investors can bid for a minimum of 150 equity shares and in multiples of 150 shares thereafter. Pantomath Capital Advisors is the sole book-running lead manager for the IPO. The equity shares are proposed to be listed on both the BSE and the NSE.

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  1. Groww Account- https://app.groww.in/v3cO/kyrp1zph
  2. Kotak neo Account https://kotaksecurities.ref-r.com/c/i/32531/109103906

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