The ₹510-crore initial public offering from plant-based speciality products company Sanstar saw an overwhelming response from retail and high net worth individuals on Day 1 of issue opening on Friday itself. The IPO, with a price band of ₹90 to ₹95 a share, was subscribed 4.16 times.
The issue will close on July 23.
The Ahmedabad-based company’s IPO combines a fresh issue worth ₹397.10 crore and an offer for sale of 1.19 crore shares (worth ₹113.05 crore). Promoter shareholders and the promoter group shareholders will sell the shares through OFS.
The company has reserved 50 per cent of the issue for qualified institutional buyers, 15 per cent for non-institutional Investors (NII) and 35 per cent for retail investors. The portion for Non-institutions (referred to as HNIs) was subscribed nearly ten times and retail investors four times. However, qualified institutions have yet to make a bid.
Investors can bid for a minimum of 150 shares and in multiples of 150 thereafter.
As part of the IPO, Sanstar has raised ₹153 crore from anchor investors by allotting 1.61 crore shares to 13 funds at ₹95 apiece.
Among them included global financial institutions, domestic mutual funds, large insurance & non-banking financial companies treasuries, AIFs and foreign portfolio institutions.
The marquee investors included BofA Securities, Societe Generale, BOI Mutual Fund, Trust Mutual Fund, SBI General Insurance Company, Gagandeep Credit Capital, Chhattisgarh Investment, Negen Undiscovered Value Fund, SB Opportunities Fund, Finavenue Capital Trust, Intuitive Alpha Fund and Minerva Emerging Fund.
Proceeds from the fresh issue, totalling ₹181.55 crore, will be used to fund the capital expenditure requirement for the expansion of the company’s Dhule facility, ₹100 crore for debt payment, and a portion for general corporate purposes.
A key supplier to FMCG companies like ITC, Hindustan Unilever, Capital Foods and Godrej Agrovet, the company currently has a cumulative capacity of 1,100 tpd of maize (Kutch and Dhule plants) and after its proposed expansion at Dhule, the total capacity is expected to reach 2,100 tpd.
The company manufactures maize starch, dextrin, liquid glucose, high-maltose maize syrup, maltodextrin, dextrose monohydrate, sorbitol, and gluten. These products are used in the food industry, pharmaceuticals, and animal nutrition.
The company exports its products to 49 countries across Asia, Africa, the Middle East, the Americas, Europe, and Oceania and has established its presence across India, distributing its products to 22 states.
The company’s equity shares are proposed to be listed on the BSE and the NSE.
Pantomath Capital Advisors is the sole book-running lead manager for the IPO.