Sanstar Ltd Secures Rs 153 Crore from Anchor Investors Ahead of IPO

Sanstar Ltd, a plant-based speciality products manufacturer, has secured Rs 153 crore from anchor investors prior to its IPO. The IPO, sized at Rs 510 crore, combines a fresh issue of 4.18 crore shares and an offer for sale of 1.19 crore shares, with proceeds funding expansion and debt repayment.

Plant-based speciality products company Sanstar Ltd on Thursday announced it secured Rs 153 crore from anchor investors, ahead of its initial public offering (IPO).

The diversified anchor book for Sanstar includes global financial institutions, domestic mutual funds, large insurance and non-banking financial companies (NBFCs) treasuries, AIFs, and foreign portfolio institutions.

Among those allocated shares during the anchor round were BOFA Securities, Societe Generale, BOI Mutual Fund, Trust Mutual Fund, and SBI General Insurance Company.

According to a circular on the BSE website, Sanstar has allocated 1.61 crore equity shares to 13 funds at Rs 95 each, totaling Rs 153 crore.

The Rs 510-crore issue, priced at Rs 90 to Rs 95 per share, will be open for public subscription from July 19 to July 23. The IPO comprises a fresh issue of 4.18 crore shares and an offer for sale (OFS) of 1.19 crore shares.

The Ahmedabad-based company plans to utilize Rs 181.55 crore from the fresh issue for capital expenditure to expand its Dhule facility, Rs 100 crore for debt repayment, and a portion for general corporate purposes.

Sanstar is a leading manufacturer of plant-based speciality products in India, enhancing food taste, texture, and functionality. It operates two facilities in Maharashtra and Gujarat, with 1,100-tonne daily capacity, and exports to 49 countries.

The company has shown substantial financial growth, with a revenue increase to Rs 1,067.27 crore in FY24 from Rs 504.40 crore in FY22 and a profit rise to Rs 66.77 crore from Rs 15.92 crore over the same period.

Investors can bid for a minimum of 150 equity shares. Pantomath Capital Advisors is the lead manager, and the shares will be listed on the BSE and NSE.

(With inputs from agencies.)