Sanstar IPO Debuts Strongly on NSE, Listing at 14.7% Above Issue Price

Sanstar's initial public offering (IPO) had a respectable start on July 26, with shares being listed at ₹109 on the NSE, reflecting a 14.7% premium over the issue price of ₹95.

The IPO, a book-built issue, amounted to ₹510.15 crore. It included a fresh issue of 4.18 crore shares, totaling ₹397.10 crore, and an offer for sale of 1.19 crore shares, aggregating to ₹113.05 crore.

Bidding for Sanstar IPO commenced on July 19 and concluded on July 23, with allotments being finalized by July 24. The IPO's price band was set between ₹90 and ₹95 per share.

On July 18, Sanstar secured ₹153.05 crore from anchor investors. By the end of bidding on July 23, the IPO was oversubscribed 82.99 times, with substantial demand across all categories: the retail segment subscribed 24.23 times, the Qualified Institutional Buyers (QIB) segment 145.68 times, and the Non-Institutional Investors (NII) segment 136.49 times.

Pantomath Capital Advisors Pvt Ltd served as the book-running lead manager for the IPO, while Link Intime India Pvt Ltd acted as the registrar.

Established in 1982, Sanstar is a prominent player in India's specialty plant-based products and ingredient solutions market. The net proceeds from the fresh issue, after deducting the company's share of offer expenses, will be utilized to fund capital expenditures for expanding the Dhule Facility, repay or prepay existing borrowings, and cover general corporate expenses.

To Summarize

Sanstar's initial public offering (IPO) launched successfully on July 26, with shares debuting at ₹109 on the NSE, a 14.7% increase over the issue price of ₹95. The IPO bidding opened on July 19 and closed on July 23, with allotments finalized by July 24. The net proceeds from the fresh issue, after deducting the offer expenses allocated to the company, will be used to finance capital expenditures for the expansion of the Dhule Facility, repay or prepay existing borrowings, and address general corporate purposes.