Sanstar Ltd Shares Soar 21% on Market Debut

Shares of plant-based speciality products company Sanstar Ltd surged 21% on their stock market debut. The IPO of Rs 95 per share saw significant demand, closing at Rs 115.09 on BSE and Rs 115.19 on NSE. Funds will support expansion, debt payment, and general corporate needs.

Shares of plant-based speciality products company Sanstar Ltd closed with a premium of over 21 per cent against the issue price of Rs 95 on Friday.

The stock opened at Rs 106.40, a 12 per cent increase on the BSE. It peaked at Rs 127.68, representing a 34.4 per cent rise during the day's trading. Shares settled at Rs 115.09, reflecting a 21.14 per cent surge.

On the NSE, the stock started at Rs 109, marking a 14.73 per cent jump. It ended the day trading at Rs 115.19 apiece, up 21.25 per cent.

Sanstar Ltd's market valuation stood at Rs 2,097.45 crore. The IPO received a subscription rate of 82.99 times on the closing day, driven by strong institutional buyer interest.

The Rs 510-crore IPO included a fresh issue of up to 4.18 crore equity shares and an offer for sale of up to 1.19 crore equity shares, priced at Rs 90-95 per share.

Proceeds amounting to Rs 181.55 crore will fund the expansion of the company's Dhule facility, Rs 100 crore will go towards debt reduction, and the remainder will cover general corporate purposes.

Sanstar Ltd is a key manufacturer of plant-based speciality products and ingredient solutions. Its products enhance the taste, texture, nutrients, and functionality of foods. The company has a daily production capacity of 1,100 tonnes from its two manufacturing units in Dhule, Maharashtra, and Kutch, Gujarat.

Sanstar Ltd exports to 49 countries across several continents and has a strong distribution network in India, reaching 22 states.

(With inputs from agencies.)