Sanstar Limited is coming up with an IPO worth INR 510.15 crores, consisting of a fresh issue of shares worth INR 397.10 crores and an offer to sell existing shares worth INR 113.05 crores. The company aims to expand the Dhule Facility, repay borrowings, and cover general corporate purposes.
Sanstar IPO – Important Dates
| Sanstar Limited IPO Date | July 19, 2024 to July 23, 2024 |
| Sanstar Limited IPO Listing Date | July 26, 2024 |
| Sanstar Limited IPO Price | INR 90-95 per share |
| Sanstar Limited IPO Lot Size | 150 Shares |
| Sanstar Limited IPO Total Issue Size | INR 510.15 crores |
| Sanstar Limited IPO Basis of Allotment | July 24, 2024 |
| Sanstar Limited IPO Initiation of Refunds | July 25, 2024 |
| Sanstar Limited IPO Credit of Shares to Demat | July 25, 2024 |
| Sanstar Limited IPO Issue Type | Book Built Issue IPO |
| Sanstar Limited IPO Listing At | BSE, NSE |
Sanstar Limited IPO – Company Profile
Sanstar Limited is a leading Indian manufacturer of plant-based specialty products and ingredients for food, animal nutrition, and industrial applications. These enhance taste, texture, nutrients, and functionality in diverse products and sectors.
With a capacity of 3,63,000 tons per annum, it is India’s fifth-largest manufacturer of maize-based specialty products. It is recognized as a Two-Star Export House and exports to 49 countries, serving 22 Indian states.
Their two facilities in Dhule and Kutch cover 245 acres, are strategically located for raw material and export proximity, and have numerous certifications, including FSSAI, ISO 9001:2015, and HALAL, ensuring high-quality, sustainable production.
Sanstar Ltd IPO Fundamental Analysis
Sanstar Limited Limited’s financial analysis reveals a mixed performance. Revenue increased in 2023 but fell short in 2024. Equity, liabilities, and PAT rose while debt reliance decreased; RoNW and liquidity weakened, and inventory turnover slowed.
- Revenue Trend: The revenue increased from ₹5,044.02 million in March 2022 to ₹12,050.67 million in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 10,672.71 million, falling short of the previous year’s annual benchmark.
- Equity and Liabilities: Both equity and liability has shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing.
- Profitability: The profit after tax (PAT) has increased from ₹159.21 million in March 2022 to ₹667.67 million by March 2024. The rise in profitability could be a source of confidence for investors.
- Earnings per Share (EPS): The diluted EPS has also increased from ₹1.08 in March 2022 to ₹4.75 by March 2024, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has reduced from 32.51% to 30.92%, indicating a decrease in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has decreased, indicating weakening liquidity and potential challenges in meeting short-term obligations.
- Inventory Turnover Ratio: There’s a significant decrease in the Inventory Turnover Ratio, which might suggest slower sales or inefficient inventory management.
Sanstar IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in Million) | 5,044.02 | 12,050.67 | 10,672.71 |
| Equity (₹ in Million) | 852.14 | 1,871.31 | 2,537.62 |
| Expenses (₹ in Million) | 4,827.84 | 11,542.80 | 9,919.59 |
| Profit and Loss After Tax (₹ in Million) | 159.21 | 418.05 | 667.67 |
| RoNW (%) | 32.51 | 28.00 | 30.92 |
| NAV per Equity Share (₹) | 3.32 | 10.63 | 15.37 |
| Diluted EPS only (₹) | 1.08 | 2.98 | 4.75 |
| Total Assets (in millions) | 2,074.53 | 3,683.51 | 5,275.69 |
| Total Liabilities (in millions) | 1,222.39 | 1,812.2 | 2,738.07 |
| Debt Equity Ratio | 1.00 | 0.60 | 0.50 |
| Current Ratio (in time) | 1.32 | 1.40 | 1.44 |
| Inventory Turnover Ratio | 28.38 | 36.68 | 11.76 |
Sanstar Limited IPO Peer Comparison
Sanstar Limited’s consolidated financials show a notable EPS and RoNW. Gujarat Ambuja Exports Limited excels in revenue and has a high current ratio. Gulshan Polyols Limited and Sukhjit Starch display solid financial metrics, emphasizing profitability and asset turnover.
| Company | Type of Financial | Current Market Price | Total Income (₹ in million) | Face Value per Equity Share (₹) | P/E | EPS (Basic & Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Sanstar Limited | Consolidated | – | 10,816.83 | 2 | – | 4.75 | 30.92 | 15.37 |
| Gujarat Ambuja Exports Limited | Consolidated | 140.61 | 50,714.20 | 1 | 18.65 | 7.54 | 12.49 | 60.37 |
| Gulshan Polyols Limited | Consolidated | 208.93 | 13,901.82 | 1 | 73.31 | 2.85 | 2.30 | 123.63 |
| Sukhjit Starch and Chemicals Limited | Consolidated | 480.00 | 13,850.40 | 10 | 15.01 | 31.98 | 9.94 | 321.75 |
Sanstar Ltd IPO Objective
The main objective of Sanstar Limited is to fund the expansion of the Dhule Facility and repay or prepay company borrowings.
- Funding the capital expenditure requirement for expanding their Dhule Facility: The company intends to utilize INR 181.55 crores to expand the Dhule Facility, increasing production capacity by 1,000 TPD to meet growing demand. It has received cost estimates but has not yet placed orders.
- Repayment and prepayment, in part or whole, of certain borrowings availed by the company: The company plans to utilize INR 100 crores from the Net Proceeds for repaying or prepaying existing borrowings, covering prepayment charges and potentially refinancing additional borrowings, subject to business cycle variations.
- General Corporate Purposes: The company will deploy the balance of funds towards general corporate purposes, including marketing expenses, business development, salaries, administrative costs, new projects, finance costs, government payments, expanding international presence, and funding growth opportunities.
Sanstar IPO Risks And Challenges
Sanstar Limited’s risk includes reliance on maize, which exposes it to price volatility and supply issues. Lack of fixed-price contracts and adequate working capital during peak seasons may negatively impact profitability and operations.
- The company depends on maize and other materials for its products, and costs significantly affect expenses. Raw material sourcing from local markets and suppliers is crucial, and price volatility and supply issues can potentially impact profitability.
- Without fixed-price contracts for raw material procurement, the company faces exposure to price volatility and supply risks. Potential disruptions and a lack of long-term supplier agreements could adversely affect profitability and operations.
- During maize peak harvesting season, significant working capital is required for procurement and storage. Inadequate working capital during this period may adversely affect operations and overall business performance.
Sanstar Ltd IPO – Industry & Market Potential
Rising global maize consumption, projected to reach 1.36 billion MT by 2032, will be driven by higher incomes and meat demand. Feed use will account for 64%, with notable increases in Asia and Africa.
Maltodextrin powder, derived from maize starch, offers sustained energy and aids in recovery without causing discomfort. The Indian market, valued at $141 million in 2023, is projected to grow to $210.8 million by 2029.
Sorbitol, used in various industries as a sweetener and stabilizer, saw India’s market valued at $61.2 million in 2023. Projected to reach $80.7 million by 2029, it benefits from rising demand for food and beverages.
Sanstar Limited IPO – Type of Offer
Sanstar Limited plans a fresh issue of shares, seeking INR 397.10 crores to fund the expansion of the Dhule Facility and repay or pre-pay company borrowings. Additionally, the company proposes an offer for sale, intending to sell existing shares worth INR 113.05 crore.
- Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 397.10 crores. The company intends to utilize the proceeds from the fresh issue to expand Dhule Facility, repay borrowings, and cover general corporate purposes.
- Offer for sale: Sanstar Limited is offering to sell existing shares worth INR 113.05 crore. The following are the details of the existing shareholders who are also the promoters selling the shares:
| Name of the promoter selling shareholder | Maximum number of offered shares for sale (in millions) |
| Gouthamchand Sohanlal Chowdhary | 500,000 |
| Sambhav Gautam Chowdhary | 500,000 |
| Shreyans Gautam Chowdhary | 500,000 |
Sanstar IPO Offer Size
The offer size of Sanstar Limited is INR 510.15 crores, consisting of a fresh issue of 397.10 crores and an offer to sell 113.05 crore shares. The company seeks funds to expand the Dhule Facility, repay borrowings, and cover general corporate purposes.
Sanstar Limited IPO Allotment Structure
Sanstar Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
How to apply for a Sanstar Limited IPO?
To apply for the Sanstar Limited IPO through Alice Blue, you would typically follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Sanstar Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Sanstar Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Sanstar Limited’s IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Sanstar Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Sanstar Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Sanstar Limited IPO:
● Registrar’s Website: Visit the website of KFin Technologies Limited, the registrar of the Sanstar Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● BSE NSE: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) National Stock Exchange (NSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Sanstar Limited Ltd IPO Offer Registrar
The registrar for the Sanstar Limited IPO is KFin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Link Intime India Private LIMITED
Phone: +91 8108114949
Email: sanstar.ipo@linkintime.co.in
Website: https://linkintime.co.in/
Sanstar Limited Limited IPO – FAQs
1. What is Sanstar Limited’s allotment date?
The allotment date of the Sanstar Limited IPO is July 24, 2024.
2. What is the price band of the Sanstar Limited IPO?
The price band of the issue is INR 90-95 per share.
3. What is the size of the Sanstar Limited IPO?
The offer size of Sanstar Limited is INR 510.15 crores, consisting of a fresh issue of 397.10 crores and an offer to sell existing shares worth 113.05 crores. The company seeks funds to expand the Dhule Facility, repay borrowings, and cover general corporate purposes.
4. What is the listing date of the Sanstar Limited IPO?
The listing date of Sanstar Limited’s IPO is July 26, 2024.
