Kolkata: Ahmedabad-based Sanstar Limited, which filed its DRHP on January 01, 2024 with SEBI, has received capital markets regulator SEBI’s approval on April 30, 2024 to launch Initial Public Offering (IPO).
Sanstar, one of the major manufacturers of Plant-based Specialty Products and Ingredient Solutions in India for Food, Animal Nutrition, and Industrial Applications, exports to over 45 countries across Asia, Americas, Europe and Oceania, Middle East and Africa and derives more than 30% of the revenue from exports.
Speciality products and ingredient solutions add taste, texture, nutrients and increased functionality to food, animal nutrition and industrial products, as ingredients, thickening agents, stabilizers, sweeteners, emulsifiers, additives nutritional ingredients, disintegrants, excipients, supplements, coating agents, binders, smoothing & flattering agents, finishing agents, among others.
The IPO comprises Fresh Issue of upto 40 million shares and an Offer for Sale of upto 8 million shares by the selling shareholders.
Sanstar has an installed capacity of 1,100 tons per day through its two manufacturing facilities at Dhule in Maharashtra and Kutch in Gujarat. Sanstar is promoted by two generations of the Promoters having cumulative experience of over 6 decades in the industry.
To tap the next phase of the growth, the Company is in the process of expanding the capacity at Dhule facility on the existing land which is expected to increase 1,000 tons per day in capacity.
The Fresh Issue proceeds (or “Net Proceeds”) would be utilised for funding the capital expenditure requirement for expansion of the Dhule facility and repayment and/or pre-payment of certain borrowings.
Pantomath Capital Advisors Private Limited is the sole Book Running Lead Manager. Company’s equity shares are proposed to be listed on the BSE and NSE.
