₹ 14250 / 150 shares
IPO Details
RHP/DRHPIssue Date
19 Jul - 23 Jul'24
Investment/lot
₹ 14250
Price Range
90 - 95
Lot Size
150
IPO Size
₹ 510.15 Cr
IPO Listing Details
Listing On
26 Jul'24
Issue Price
95
Listed Price
₹ 109
Retail Gain/Listing Gain
▲14.74%
IPO Timeline
Sanstar Ltd IPO: Key Details | IPO Review |
Kotak Securities
•2m 27s
Sanstar Company Background
Sanstar is one of the major manufacturers of plant-based specialty products and ingredient solutions in India for food, animal nutrition and other industrial applications (Source: Company Commissioned Frost & Sullivan Report, dated May 18, 2024).
The company offers a diversified portfolio of speciality products and ingredient solutions including liquid glucose, dried glucose solids, maltodextrin powder, dextrose monohydrate, native maize starch, modified maize starches and co-products like germs, gluten, fiber and enriched protein, amongst others.
With that, let's take a look at the competitive strengths and risk factors for Sanstar Limited:
Sanstar Competitive Strengths
The company has grown with revenue and PAT CAGR of 45% and 105% over Fiscal 2022-2024
As per Frost & Sullivan (Company Commissioned Report dated May 18, 2024), the company is the fifth largest manufacturer of maize-based specialty products and ingredient solutions in India. Their revenue from operations has increased at a CAGR of 45.46% from ₹5,044.02 million in Fiscal 2022 to ₹10,672.71 million in Fiscal 2024 while their profit after tax has grown at a CAGR of 104.79% from ₹159.21 million in Fiscal 2022 to ₹667.67 million in Fiscal 2024.
Speciality products and ingredients solutions player catering to diverse industry segments
The company’s manufacturing facilities, export presence & exposure in over 49 countries, along with their track record of commercialising and scaling up new products, position them to advantageously capture the requirements of diverse end-user industrial sectors.
Global presence in a market with high entry barriers
Along with a presence in 49 countries, the company is recognised as a Two Star Export House under the Indian Ministry of Commerce. Further, The maize-based specialty products and ingredient solutions industry, in which the company operates, has significant entry barriers. These include high capital costs for manufacturing facilities, lengthy research and development periods, the need to build customer relationships, limited availability of raw materials, the necessity of achieving economies of scale, and competition from established players like the company itself. (Source: Company Commissioned Report from Frost & Sullivan, dated May 18, 2024).
Risk Factors
- Any fluctuations in the prices of raw materials may adversely affect the pricing of products and may have an impact on the business.
- There are no long-term contracts in place with suppliers for raw materials.
- There are pending litigations involving the company. Any unfavourable order or decision in such proceedings may affect operations.
Key Strategies
- Expand manufacturing capacities to capture additional market share.
- Leverage their industry-leading capabilities by continuing to diversify their customer base and increase wallet share.
- Increase their global footprint and augment growth in current geographies.
Sanstar Limited Key Financials
Here are the key financials for Sanstar Limited:
Particulars (in Rs. million)
Particulars (in Rs. million)
How to apply for IPO through ASBA
Kotak Securities
•04m 01s
How to apply for an IPO using UPI
Kotak Securities
•01m 19s
Opening of account will not guarantee allotment of shares in IPO. Investors are requested to do their own due diligence before investing in any IPO.
How To Apply for Sanstar Ltd IPO?
Here are the steps to apply for Sanstar Ltd IPO:
Step 1: Log in to your Kotak Securities Demat account Log in to your Demat account to access IPO investments. Next, select the current IPO section.
Step 2: Specify IPO details Enter the number of lots and the price you wish to apply for.
Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
Step 4: Mandate Notification Your UPI app will receive a mandate notification to block funds.
Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
Sanstar IPO FAQs
When is Sanstar IPO listing date?
Sanstar IPO will list on 2024-07-26.
What is the issue size of Sanstar IPO?
510.15 is the issue size of Sanstar IPO.
What is the minimum lot size required for Sanstar IPO?
The minimum lot size is 150 shares and the investment required is ₹14250.
What is the price band of the Sanstar IPO?
The price band of Sanstar IPO is ₹90 to ₹95.
Where can I read more about Sanstar business?
You can read more about Sanstar and its IPO from the company’s red herring prospectus (RHP) here.
What is the Sanstar Limited IPO?
The Sanstar Limited IPO has an issue size of Rs. 510.15 crores. The IPO opens for subscription on 19th July 2024 and closes on 23rd July 2024
Who is the Registrar for Sanstar Limited IPO?
Linkintime India Private Limited is the registrar for this IPO.
