Sanstar Ltd Shares Soar on Stock Market Debut

Sanstar Ltd, a leading manufacturer of plant-based specialty products, saw its shares list with a nearly 15% premium against the issue price. The stock continued to climb on its first trading day, with IPO subscriptions reaching 82.99 times. Proceeds from the IPO will fund expansion, debt repayment, and corporate purposes.

Shares of plant-based specialty products company Sanstar Ltd on Friday listed with a premium of nearly 15 percent against the issue price of Rs 95.

The stock started trading at Rs 106.40, up 12 percent from the issue price on the BSE. It further surged 33.15 percent to Rs 126.50.

On the NSE, it opened at Rs 109, reflecting a 14.73 percent increase.

Sanstar Ltd's initial public offering (IPO) garnered 82.99 times subscription on the closing day of the share sale, driven by significant participation from institutional buyers.

The Rs 510-crore IPO included a fresh issue of up to 4.18 crore equity shares and an offer for sale of up to 1.19 crore equity shares, with a price range of Rs 90-95 per share.

Proceeds from the fresh issue, amounting to Rs 181.55 crore, will be used to fund capital expenditure for expanding the company's Dhule facility, Rs 100 crore for debt repayment, and a portion for general corporate purposes.

Sanstar is a major manufacturer of plant-based specialty products and ingredient solutions in India, contributing taste, texture, nutrients, and functionality to food products. It operates two manufacturing facilities in Dhule, Maharashtra, and Kutch, Gujarat, with an installed capacity of 1,100 tonnes per day.

The company exports to 49 countries across Asia, Africa, the Middle East, the Americas, Europe, and Oceania, and has a strong presence in 22 Indian states.