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