Sanstar Ltd's Blockbuster IPO: 82.99 Times Subscription on Final Day

Sanstar Ltd's initial public offering (IPO) was massively oversubscribed, receiving 82.99 times the subscription on its closing day. Institutional investors played a significant role, with the Qualified Institutional Buyers (QIBs) portion seeing 145.68 times subscription. The proceeds will be used for expansion and debt repayment.

Sanstar Ltd's initial public offering (IPO) received an overwhelming response, with the share sale being oversubscribed 82.99 times on its final day. The Rs 510-crore initial share sale saw bids for 3,11,95,03,800 shares against an offer of 3,75,90,000 shares, according to NSE data.

Institutional buyers significantly contributed to this success, as the portion for Qualified Institutional Buyers (QIBs) was subscribed 145.68 times, while non-institutional investors subscribed 136.50 times, and Retail Individual Investors (RIIs) recorded 24.23 times subscription.

The IPO comprises a fresh issue of 4.18 crore equity shares and an offer for sale of 1.19 crore equity shares, priced between Rs 90-95 per share. Sanstar Ltd raised Rs 153 crore from anchor investors and plans to use Rs 181.55 crore for the Dhule facility expansion, Rs 100 crore for debt repayment, and the rest for general corporate purposes.

Sanstar Ltd is a leading manufacturer of plant-based speciality products, boasting an installed capacity of 1,100 tonnes per day across two facilities in Maharashtra and Gujarat. The company's products enhance food taste, texture, and functionality, and it exports to 49 countries while distributing across 22 Indian states.

Pantomath Capital Advisors is managing the offer, and equity shares are set to list on the BSE and NSE.

(With inputs from agencies.)