Sanstar Limited’s IPO Hits D-Street on July 19 - Key Details You Must Know
The Indian initial public offering (IPO) juggernaut is in full swing. In the first half of 2024, Indian IPOs raised a whopping USD 4.4 billion, a 98% increase compared to the year-ago period. With stock market indices reaching new highs, investor optimism is soaring. Sanstar Limited is looking forward to cashing in on this positive sentiment with its upcoming IPO, set to debut on D-Street on July 19.
Source: Times of India, India times/business
About Sanstar Limited
Sanstar Limited is one of the major manufacturers of plant-based specialty products and ingredient solutions in India for food, animal nutrition, and other industrial applications. Its products include liquid glucose, dried glucose solids, maltodextrin powder, dextrose monohydrate, native maize starches, and others. The company is India's fifth-largest manufacturer of maize-based specialty products and ingredient solutions.
IPO details and objectives
The IPO consists of a fresh issue and an offer for sale. The table captures the key details of this IPO:
| Bid opens on | July 19 |
|---|---|
Bid closes on | July 23 |
Fresh issue size | Up to 41,800,000 equity shares |
Offer for sale | Up to 11,900,000 equity shares |
Total offer size | Up to 53,700,000 equity shares |
Minimum bid lot | 150 equity shares and in multiples of 150 shares thereof |
The company plans to use the proceeds received for:
- Funding the capital expenditure requirement for the expansion of its Dhule facility
- Repayment and pre-payment, in part or full, of certain borrowings availed by it
- General corporate purposes
Financial snapshot
Here are some key financials of the company:
| Particulars | FY 23-24 | FY 22-23 | FY 21-22 |
|---|---|---|---|
Total assets (in Rs crores) | 527.569 | 368.351 | 207.453 |
Total income (in Rs crores) | 1081.683 | 1209.668 | 504.767 |
Return on equity | 30.70% | 27.71% | 18.68% |
Basic and diluted EPS (in Rs) | 4.75 | 2.98 | 1.08 |
Return on net worth | 30.92% | 28% | 32.51% |
Competitive strengths
Sanstar Limited has the following competitive strengths:
- It is one of the largest manufacturers of maize-based speciality products and ingredient solutions in India with a diverse product portfolio
- It is a speciality products and ingredients solutions player catering to diverse industry segments and poised to benefit from mega industrial trends
- Strategically located, sustainability-driven, state-of-the-art manufacturing facilities
- Global presence in a market with high entry barriers
- Strong financial growth along with robust performance metrics
- Well positioned to leverage the large opportunities in the speciality products and ingredient solutions industry
- Large, diversified customer base with long-lasting relationships
Summing it up
Go through the company’s red herring prospectus (RHP) for a detailed overview of the company and various other aspects of the IPO. Before investing, make sure it fits well in your overall financial goals and strategy.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their own research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document prior to investing. Brokerage will not exceed SEBI’s prescribed limit.
FAQs
Who is the book-running lead manager of Sanstar Limited IPO?
Pantomath Capital Advisors Private Limited is the book-running lead manager of Sanstar IPO.
Who is the registrar of the Sanstar Limited IPO?
Link Intime India Private Limited is the registrar of the offer.
