After strong IPO response, Sanstar shares to debut tomorrow. Here's what GMP suggests

After a robust subscription to the IPO, the shares of Sanstar will debut on the exchanges on Friday. Ahead of the listing, the company's shares are trading with a GMP of Rs 30 in the unlisted market.

Considering the upper price band of Rs 35, the stock is expected to list with a premium of 32%.

However, it is important to note that grey market premiums are just an indicator as to how the company's shares are stacked up in the unlisted market and are subject to change rapidly.


The issue was subscribed nearly 83 times, driven by strong demand from non-institutional and institutional investors.

The company plans to use net proceeds from the fresh issue for expanding its Dhule facility, repay debt and other general corporate purposes.

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Sanstar is a major manufacturer of plant-based specialty products and ingredient solutions in India for food, animal nutrition, and other industrial applications. Its products include liquid glucose, dried glucose solids, maltodextrin powder, dextrose monohydrate, native maize starches, modified maize starches, and co-products like germs, gluten, fiber, and enriched protein, among others.

According to Frost & Sullivan, Sanstar is the third-largest manufacturer of maize-based specialty products and ingredient solutions in India, with an installed capacity of 3,63,000 tons per annum (1,100 tons per day).

In FY24, Sanstar's revenue from exports was Rs 394.44 crore, representing 35.53% of its gross revenue from operations, based on its restated consolidated financial statements. The company exported its products to 49 countries across Asia, Africa, the Middle East, the Americas, Europe, and Oceania during Fiscal 2024.

Its revenue from operations has increased at a compound annual growth rate (CAGR) of 45.46%, from Rs 504 crore in FY22 to Rs 1067 crore in FY24, while its profit after tax grew at a CAGR of 104.79%, from Rs 15.9 crore to Rs 66.7 crore in the same period.

Pantomath Capital Advisors is the sole book running lead manager to the issue, while Link Intime India is the registrar to the offer.

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