Sanstar IPO: What Investors Need to Know
Sanstar, a prominent player in the production of specialty products and ingredients solutions, has announced exciting news for investors. The company is gearing up to launch its initial public offering (IPO) on July 19, 2024. This move marks Sanstar’s debut in the stock market, presenting an intriguing opportunity for investment in a growing firm. With the bidding process open until July 23, 2024, here’s everything you need to know about this much-anticipated IPO.
IPO Details and Price Band
The price band for the Sanstar IPO has been set at Rs 90-95 per share. Through this offering, the company aims to raise Rs 510.15 crore. The IPO comprises a fresh issue of 4.18 crore equity shares valued at Rs 397.1 crore and an offer-for-sale (OFS) of 1.19 crore shares worth Rs 113.05 crore by the promoters.
The OFS portion involves several key shareholders reducing their stakes. Rani Gouthamchand Chowdhary plans to offload 38 lakh equity shares, whereas Richa Sambhav Chowdhary and Samiksha Shreyans Chowdhary will each offer 33 lakh equity shares. Additionally, Gouthamchand Sohanlal Chowdhary, Shreyans Gautam Chowdhary, and Sambhav Gautam Chowdhary are each selling 5 lakh shares as part of the OFS.
Investor Participation and Use of Proceeds
Based in Ahmedabad, Sanstar has strategically allocated over half of its IPO to qualified institutional investors. Retail investors have the chance to bid for 35% of the issue, and the remaining 15% is reserved for non-institutional investors, including high net worth individuals.
The company plans to utilize a significant portion of the funds raised from the IPO to enhance its operations and financial standing. Specifically, Rs 181.6 crore is earmarked for expanding the Dhule facility, and another Rs 100 crore will be directed towards debt repayment. The remainder of the proceeds is allocated for general corporate purposes. As of May 24, 2024, Sanstar reported outstanding dues of Rs 164.23 crore.
Financial Performance
Sanstar has demonstrated robust financial performance leading up to the IPO. In the fiscal year 2023-24, the company’s net profit soared by 60% to Rs 66.8 crore, up from Rs 41.8 crore in the previous year. The company’s EBITDA saw a commendable increase of 35.5%, reaching Rs 98.1 crore in FY24.
Conclusion
Sanstar’s IPO is an important event for both the company and potential investors. With the firm’s solid financial performance and strategic plans for expansion, this IPO represents a noteworthy opportunity for investment in a growing sector. Interested investors should mark their calendars for July 19, 2024, when Sanstar makes its initial foray onto the stock market, with the final allotment scheduled for July 24, 2024, and the stock market debut on July 26, 2024. This IPO stands as a pivotal moment in Sanstar’s journey, potentially paving the way for its continued growth and success in the years to come.
