Sanstar Ltd

Sanstar IPO

Sanstar Ltd

₹13,500 /150 sharesMinimum investment

IPO details

Minimum investment
₹13,500
Price range
₹90 - ₹95
Lot size
150
Issue size
510.15 Cr
Face value
2
IPO document

Subscription rate

Qualified Institutional Buyers122.57x
Non-Institutional Investor133.73x
Retail Individual Investor22.48x
Total74.91x
As of 23 Jul'24, 04:00 PM

Schedule

19 Jul 2024
IPO open date
23 Jul 2024
IPO close date
24 Jul 2024
Allotment date
24 Jul 2024
Funds unblock or debit
26 Jul 2024
Tentative listing date

About

Sanstar Limited is a producer of plant-based specialty products and ingredient solutions. It caters to food, animal nutrition, and various industrial sectors. The company’s product lineup includes liquid glucose, dried glucose solids, maltodextrin powder, dextrose monohydrate, as well as native and modified maize starches. The company also produces co-products such as germs, gluten, fibre, and protein. Sanstar operates two manufacturing facilities. These are located in Dhule, Maharashtra, and Kutch, Gujarat. The company has an in-house research and development (R&D) team that has made products like san-o-gel pre-gelatinised starch and san-o-mould for the oil & gas and food industries, respectively. Maize is the primary raw material for the company’s products, supplemented by various other consumables and chemicals used in their manufacturing processes.;
Founded in
1982
MD/CEO
Mr. Gouthamchand Sohanlal Chowdhary
Parent organisation
Sanstar Ltd

Sanstar Financials

Revenue
Total Assets
Profit
All values are in ₹ Cr
5041,2051,067202220232024

Strengths & Risks

Strengths
Risks
As of FY24, Sanstar Limited has a presence in 22 states of India and has exported its products to 49 countries across Asia, Africa, the Middle East, the Americas, Europe, and Oceania.
The company's Dhule and Kutch units hold ISO 9001:2015 certification for quality management systems, while the Dhule unit holds the FSSAI’s FSSC 22000:2018 certification too.
The company’s profit after tax (PAT) has increased steadily over the years, from Rs 15.92 crore in FY22 to Rs 41.80 crore in FY23 to Rs 66.77 crore in FY24.
Sanstar Limited has two manufacturing facilities. These are located in two different states – Gujarat and Maharashtra. In case of any negative developments in one state, this diversification of its manufacturing facilities is a positive for the company’s business.
Sanstar is currently involved in several legal proceedings. Any negative judgements in these cases could hurt the company’s business prospects.
The company’s products are used by specific industries. Any reduction in the demand for these products from such industries could result in a loss of business and profits for Sanstar.
Sanstar uses maize as the primary raw material for its products. However, maize is experiencing increased demand from feed manufacturers, ethanol manufacturers, and food and beverage industries. This could strain the supply of maize, causing problems for Sanstar to meet its commitments to clients.
As of March 31, 2024, the company had borrowings of Rs 127.64 crore. Any failure to service or repay these borrowings on time can hurt the company’s business operations and financial status.
Sanstar is dependent on a limited number of local farmers for the supply of raw materials for its manufacturing units. Any disruption in supplies can hit the company’s business.
In fiscal years 2024, 2023, and 2022, the western region of India accounted for Rs 504.20 crore (70.45%), Rs 663.43 crore (75.14%), and Rs 410.34 crore (82.69%) of total revenues. Any disruption in business from this concentrated geographical area could hurt the company’s business.

Application details

For Sanstar IPO, eligible investors can apply as Regular.

Apply asPrice bandApply rangeLot size
Regular₹90 - ₹95Upto ₹2 Lakhs150
High Networth Individual₹90 - ₹95₹2 - ₹5 Lakhs150

Frequently Asked Questions