Sanstar Ltd's IPO Fully Subscribed on Day One

Sanstar Ltd’s IPO was fully subscribed on its first day, receiving bids 4.16 times the shares on offer. The Rs 510-crore IPO includes fresh equity shares and an offer for sale. Proceeds will fund Dhule facility expansion, debt payment, and general corporate purposes. Sanstar exports to 49 countries.

The initial public offering (IPO) of plant-based speciality products company Sanstar Ltd got fully subscribed on the first day of subscription on Friday.

The Rs 510-crore initial share-sale received bids for 15,62,64,000 shares against 3,75,90,000 shares on offer, translating into 4.16 times subscription, as per NSE data.

The quota for non-institutional investors received 9.85 times subscription while the retail individual investors (RIIs) part got subscribed 4.07 times. The portion for qualified institutional buyers (QIBs) received 5 per cent subscription.

The IPO has a fresh issue of up to 4.18 crore equity shares and an offer for sale of up to 1.19 crore equity shares.

The IPO has a price range of Rs 90-95 per share.

Sanstar Ltd on Thursday said it has collected Rs 153 crore from anchor investors.

Proceeds from the fresh issue to the tune of Rs 181.55 crore will be utilised to fund the capital expenditure requirement for the expansion of the company's Dhule facility, Rs 100 crore for debt payment and a portion will also be used for general corporate purposes.

Sanstar is one of the major manufacturers of plant-based speciality products and ingredient solutions in the country. The company's specialty products and ingredients add taste, texture, nutrients and increased functionality to foods as ingredients, thickening agents, stabilisers, and sweeteners, among others.

It has an installed capacity of 1,100 tonnes per day through its two manufacturing facilities at Dhule in Maharashtra and Kutch in Gujarat.

The company exports its products to 49 countries across Asia, Africa, the Middle East, the Americas, Europe, and Oceania and has established its presence across India, distributing its products to 22 states.

Pantomath Capital Advisors is the book running lead manager to the offer.

The equity shares of the company are proposed to be listed on the BSE and the NSE.

(With inputs from agencies.)