Sanstar IPO 2024 Complete Overview-
Sanstar IPO Introduction
Sanstar is a leading Indian manufacturer specializing in plant-based specialty products and ingredient solutions for food, animal nutrition, and industrial applications. It has a capacity of 1,100 metric tons per day.
Ranked as the third-largest producer of maize-based specialty products in India, Sanstar offers liquid glucose, dried glucose solids, maltodextrin powder, dextrose monohydrate, native starches, modified starches, and co-products like germs, gluten, fiber, and enriched protein. As the Initial Public Offering (IPO) approaches, these strengths will be leveraged for growth, inviting investors to join a journey driven by innovation and excellence. It is established in 1982.
Sanstar Limited Financial Information (Restated Consolidated)
Sanstar Limited’s revenue decreased by -10.58%, while profit after tax (PAT) rose by 59.71% between the financial years ending March 31, 2024, and March 31, 2023.
| Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|
| Assets | ₹527.57 Crore | ₹368.35 Crore | ₹207.45 Crore |
| Revenue | ₹1,081.68 Crore | ₹1,209.67 Crore | ₹504.77 Crore |
| Profit After Tax | ₹66.77 Crore | ₹41.81 Crore | ₹15.92 Crore |
| Net Worth | ₹215.91 Crore | ₹149.28 Crore | ₹48.97 Crore |
| Reserves and Surplus | ₹225.18 Crore | ₹158.41 Crore | ₹55.69 Crore |
| Total Borrowing | ₹127.64 Crore | ₹111.70 Crore | ₹85.22 Crore |
Sanstar IPO Details
Sanstar’s IPO will open on July 19, 2024, and close on July 23, 2024. The issue price is set between ₹90.00 and ₹95.00 per share, with a total IPO size of ₹510.15 crore. The offering includes an offer for sale of ₹113.05 crore and a fresh issue of ₹397.10 crore. Post-IPO, promoter holding will decrease from 99.77% to 70.37%.
| Detail | Information |
|---|---|
| IPO Issue Opening Date | 19th Jul 2024 |
| IPO Issue Closing Date | 23rd Jul 2024 |
| IPO Issue Price | ₹90.00-95.00 Per Share |
| IPO Listing At | BSE, NSE |
| Retail Quota | Not less than 35.00% of the Offer |
| IPO Issue Type | Book Build Issue |
| IPO Issue Size | ₹510.15 Cr |
| Offer for Sale | ₹113.05 Cr |
| Fresh Issue | ₹397.10 Cr |
| Face Value | ₹2 Per Equity Share |
| IPO Discount | TBD |
| Promoter Holding Pre IPO | 99.77% |
| Promoter Holding Post IPO | 70.37% |
Sanstar IPO Strengths
- Industry Leadership: It is recognized as one of India’s largest manufacturers of maize-based specialty products and ingredient solutions.
- Diverse Market Reach: It is positioned to benefit from diverse industry segments and emerging industrial trends.
- State-of-the-Art Facilities: It operates sustainable, state-of-the-art manufacturing facilities in Dhule, Maharashtra, and Kutch, Gujarat.
- Global Presence: It has also presence in global markets with high entry barriers, ensuring adherence to international quality standards.
- Financial Performance: It demonstrates strong financial growth and performance metrics.
- Promoter Expertise: It is backed by two generations of promoters with extensive domain knowledge.
- Market Positioning: It is also well-positioned to leverage growth opportunities in the specialty products and ingredient solutions industry.
Investors in the Sanstar IPO have the opportunity to engage with a company known for its strategic strengths and potential for sustained growth in the dynamic specialty products market.
Sanstar IPO Objectives
The company proposes to utilize the Net Proceeds from the Fresh Issue towards funding the following objects:
- Funding the capital expenditure requirement for expansion of Dhule Facility – INR 181.56 crore
- Repayment and/or pre-payment, in part or full, of certain borrowings availed by the company – INR 100 crore
- General corporate purposes
Sanstar IPO Peer Comparison
| Company | EPS Basic | EPS Diluted | NAV | P/E(x) | RoNW | Financial Statements |
|---|---|---|---|---|---|---|
| Sanstar Limited | 4.75 | 4.75 | 15.37 | 19.98 | 30.92 | Consolidated |
| Gujarat Ambuja Exports Ltd. | 7.54 | 7.54 | 60.37 | 18.65 | 12.49 | Consolidated |
| Gulshan Polyols Ltd. | 2.85 | 2.85 | 123.63 | 73.31 | 2.3 | Consolidated |
| Sukhjit Starch & Chemicals Ltd. | 31.98 | 31.98 | 321.75 | 15.01 | 9.94 | Consolidated |
In the peer comparison, Sanstar Limited is noted for its strong Return on Net Worth (RoNW) of 30.92%, outperforming its peers. The company’s EPS (Basic and Diluted) stands at 4.75, with a P/E ratio of 19.98 and a NAV of 15.37. This consolidated financial strength positions Sanstar favorably in the market.
Promoters
Based on the provided search results, the promoters of Sanstar Limited are:
- Gouthamchand Sohanlal Chowdhary
- Sambhav Gautam Chowdhary
- Shreyans Gautam Chowdhary
Company Address
Sanstar Limited
Sanstar House, near Parimal Under Bridge,
opposite Suvidha Shopping Centre, Paldi
Ahemdabad,Gujarat-380 007
India
Website: https://www.sanstar.in/
Phone: +91 79 26651819
Email: cs@sanstar.in
Conclusion
Investing in Sanstar Limited’s IPO is considered a promising opportunity due to the company’s well-established and rapidly growing presence in the industry. Recognized for its strong track record, advanced manufacturing facilities, and diverse product range, Sanstar is well-positioned for continued success. The company’s strategic market presence and robust financial health make it an attractive option for investors. As this new phase is embarked upon by Sanstar, investors are invited to join in the journey of growth and innovation. For more IPO details plz visit https://undergroundfinanceinsight.com/
Frequently Asked Questions (FAQs) about Sanstar IPO
What is the opening and closing date for the Sanstar IPO?
The Sanstar IPO will open on July 19, 2024, and close on July 23, 2024.
What is the price range for the Sanstar IPO shares?
The IPO issue price is set between ₹90.00 and ₹95.00 per share.
How will the promoter holding change post-IPO?
The promoter holding will decrease from 99.77% pre-IPO to 70.37% post-IPO.
