Sanstar Limited manufactures specialty plant-based products and ingredient solutions for food, pet food and other industrial applications in India.
The company’s product portfolio includes liquid glucose, dried glucose solids, maltodextrin powder, dextrose monohydrate, native maize starches, modified maize starches, and by-products such as germ, gluten, fiber and fortified proteins.
These products are used in:
- Food products: As ingredients, thickeners, stabilizers, sweeteners, emulsifiers, and additives (including in baked goods, confectionery, pasta, soups, ketchup, sauces, creams and desserts);
- Pet food products: As nutritional ingredients; and
- Other industrial products: As disintegrants, excipients, supplements, coating agents, binders, smoothing and flattering agents, and refining agents.
The company has two manufacturing facilities covering a total area of 10.68 million square feet (approx 245 acres) at Dhule in the state of Maharashtra and Kutch in the state of Gujarat. With an installed capacity of 3,63,000 tons per annum (1,100 tons per day), the company is the fifth largest manufacturer of corn-based specialty products and ingredients in India.
The company exports its products to companies in 49 countries including Asia, Africa, the Middle East, America, Europe and Oceania. The company also has a pan-India presence where its products are sold in 22 states.
As of March 31, 2024, the company employed 271 people (including 60 permanent employees) at its plants in Kutch and Dhule and at its headquarters.
Sanstar IPO – Details
| IPO Opening Date | 19 July 2024 |
| IPO Closing Date | 23 July 2024 |
| Issue Type | Book Built Issue IPO |
| Issue Size | Total Issue Size: 5,37,00,000 Shares Worth ₹510.15 Crore Fresh Issue: 4,18,00,000 Shares Worth ₹397.10 Crore Offer For Sale: 1,19,00,000 Shares Worth ₹113.05 Crore |
| Face Value | ₹2 per equity share |
| IPO Price | ₹90 – ₹95 per share |
| Market Lot | 150 Shares |
| Min Order | 150 Shares (1 Lot) |
| Listing At | BSE, NSE |
| Register | Link Intime India Private Ltd |
| QIB Shares Offered | 50% |
| NII (HNI) Shares Offered | 15% |
| Retail Shares Offered | 35% |
Sanstar IPO – Date Schedule
| IPO Open Date | 19 July 2024 |
| IPO Close Date | 23 July 2024 |
| Credit of Shares to Demat Account | 24 July 2024 |
| Initiation of Refund | 25 July 2024 |
| Credit of Shares to Demat Account | 25 July 2024 |
| IPO Listing Date | 26 July 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on July 23, 2024 |
Sanstar IPO – Lots Size & Price
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 150 | ₹14,250 |
| Retail (Max) | 14 | 2,100 | ₹1,99,500 |
| S-HNI (Min) | 15 | 2,250 | ₹2,13,750 |
| S-HNI (Max) | 70 | 10,500 | ₹9,97,500 |
| B-HNI (Min) | 71 | 10,650 | ₹10,11,750 |
Competitive Strengths
- One of the largest manufacturers of maize based specialty products and ingredient solutions in India with diverse product portfolio;
- Specialty products and ingredients solutions player catering to diverse industry segments and poised to benefit from mega industrial trends;
- The company has strategically located, sustainability driven, state of the art manufacturing facilities;
- Global presence in a market with high entry barriers;
- Strong financial growth alongwith robust performance metrics;
- Two Generations of Promoters with domain knowledge;
- Well positioned to leverage the large opportunities in speciality products and ingredient solutions industry and;
- Large, diversified customer base with long lasting relationships.
Company Financials
| Particulars | Total Revenue | Total Expense | Profit After Tax | Total Borrowing |
|---|---|---|---|---|
| 31 March 2022 | 504.76 | 482.78 | 15.92 | 85.22 |
| 31 March 2023 | 1209.66 | 1154.28 | 41.80 | 111.70 |
| 31 March 2024 | 1081.68 | 991.95 | 66.76 | 127.64 |
Key Performance Indicator
| KPI | Values |
|---|---|
| ROE | 30.92% |
| ROCE | 24.43% |
| Debt/Equity | 0.5 |
| RoNW | 30.92% |
| P/BV | 6.18 |
| PAT Margin (%) | 6.17 |
| Pre IPO | Post IPO | |
| EPS (Rs) | 4.75 | 3.66 |
| P/E (x) | 19.98 | 25.93 |
Object Of The Issue
- Funding the capital expenditure requirement for the expansion of the Dhule Facility;
- Repayment and/or pre-payment, in part or full, of certain borrowings availed by the Company, and;
- General Corporate Purposes.
Sanstar IPO Peer Comparison
| S. No. | Face Value | Company Name | PE |
| 1 | 1 | Gujarat Ambuja Exports Limited | 18.65 |
| 2 | 1 | Gulshan Polyols Limited | 73.31 |
| 3 | 10 | Sukhjit Starch and Chemicals Limited | 15.01 |
Sanstar IPO Promoter Holding
| Pre Issue Share Holding | 99.77% |
| Post Issue Share Holding | 70.37% |
Sanstar IPO Prospectus
Company Contact Information
| Sanstar Limited Sanstar House, near Parimal Under Bridge, Opp. Suvidha Shopping Centre, Paldi, Ahmedabad – 380 007 Phone: +91 79 26651819 Email: cs@sanstar.in Website: https://www.sanstar.in/ |
Sanstar IPO Registrar
| Link Intime India Private Ltd Phone: +91-22-4918 6270 Email: sanstar.ipo@linkintime.co.in Website: https://linkintime.co.in/initial_offer/public-issues.html |
Sanstar IPO Lead Manager(s)
| 1. Pantomath Capital Advisors Pvt Ltd |
Sanstar IPO FAQs
| What is Sanstar IPO? Sanstar IPO is a main-board IPO. The issue is priced at ₹90 to ₹95 per equity share. The IPO is to be listed on BSE & NSE. |
| When Sanstar IPO will open? The IPO is to open on 19 July 2024 for QIB, NII, and Retail Investors. |
| What is Sanstar IPO Investors Portion? The investors’ portion for QIB – 50%, NII – 15%, and Retail – 35%. |
| How to Apply the Sanstar IPO? You can apply Sanstar IPO via ASBA online via your bank account. You can also apply for ASBA online via UPI through your stock brokers. You can also apply via your stock brokers by filling up the offline form. |
| How to Apply the Sanstar IPO through Angle One? Log in to Angle One Application with your credentials. Select the IPO. You will see the IPO Name “Sanstar IPO”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Angle One. |
| How to Apply the Sanstar IPO through 5 Paisa? Log in to 5 Paisa Application with your credentials. Select the IPO. You will see the IPO Name “Sanstar“. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with 5 Paisa. |
| How to Apply the Sanstar IPO through Upstox? Log in to Upstox Application with your credentials. Select the IPO. You will see the IPO Name “Sanstar”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Upstox. |
| How to Apply the Sanstar IPO through IIFL? Log in to IIFL Application with your credentials. Select the IPO. You will see the IPO Name “Sanstar”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with IIFL. |
| What is Sanstar IPO Size? Sanstar IPO size is ₹510.15 Crore. |
| What is Sanstar IPO Price Band? Sanstar IPO Price Band is ₹90 to ₹95. |
| What is Sanstar IPO Minimum and Maximum Lot Size for retail? The minimum bid is 150 Shares with ₹14,250 amount while the maximum bid is 2100 Shares with ₹1,99,500. |
| What is the Sanstar IPO Allotment Date? Sanstar IPO allotment date is 24 July 2024. |
| What is the Sanstar IPO Listing Date? Sanstar IPO listing date is 26 July 2024. The IPO is to be listed on BSE and NSE. |
