Sanstar IPO fully subscribed within two hours of bidding process, retail portion booked 2X
At 12:12 p.m., the public issue was subscribed 1.55 times. The retail category was subscribed 1.94 times, while the NII portion garnered 2.7 times bids. There were no bids from qualified institutional buyers so far.
The company's shares are trading with a GMP of Rs 38 in the unlisted market, translating to a premium of 39% over the issue price.
Sanstar IPO review
Analysts advised investors to subscribe to the issue for listing gains as the valuations appear fully priced and financial performance presents a mixed picture.
«Sanstar's financial performance is mixed, with recent declines in revenue but growth in profitability. However, Fluctuations in raw material prices, exposure to global market volatility, intense competition, and a lack of diversification beyond maize-based products pose challenges for future growth,» said Swastika Investmart, while assigning a 'subscribe-listing gain' rating.
Sanstar IPO price band
The company has fixed a price band of Rs 90-95 per share, where investors can bid for 150 shares in one lot. About 50% of the IPO is reserved for qualified institutional buyers (QIB), 35% for retail investors, and remaining 15% for non-institutional investors.
Other Details
The company plans to use net proceeds from the fresh issue for expanding its Dhule facility, repaying debt, and other general corporate purposes.
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
