Jul 19, 2024
By: Sourabh Jain
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Ahmedabad-based Sanstar’s initial public offering (IPO) will open on Friday, July 19, and will close on Tuesday, July 23.
Credit: Sanstar
Sanstar has fixed a price band of ₹90-₹95 per share for its public issue.
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Sanstar is an Ahmedabad-based company that manufactures speciality plant-based products and ingredient solutions for food, pet food and other applications.
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Sanstar is looking to raise ₹510.15 crore from the current IPO. This includes a fresh issue of ₹397.10 crore and an offer for sale (OFS) component of ₹113.05 crore.
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Ahead of the IPO, the company has received an investment of ₹153.05 crore from institutional investors.
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Investors can bid for a minimum of 150 shares and in multiples of 150 shares thereafter.
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The company, founded in 1982 manufactures specialty plant-based products and ingredient solutions for food, pet food and more. The company’s portfolio includes liquid glucose, native maize starches, dried glucose solids and more.
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The company’s income was ₹1,081.68 crore in FY23, down from ₹1,209.67 crore in FY22. The company reported a profit of ₹66.77 crore in FY23, up from ₹41.81 crore profit reported in FY22.
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The company is highly dependent on a limited number of suppliers for maize, a key raw material for the company. The market is unorganised and could result in supply issues.
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The entry of small players in the maize-based speciality products industry has led to an increase in competition for the company and is resulting in pricing pressures in the global market.
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