Sanstar Limited

About Sanstar Limited Incorporated in 1982, Sanstar Limited is one of the major manufacturers of plant-based speciality products and ingredient solutions in India. In fact, it is the fifth-largest manufacturer of maize-based speciality products. It is also recognised as a Two-star export house. Its product portfolio includes glucose, dried glucose solids, maltodextrin powder, dextrose monohydrate, native maize starches, modified maize starches and co-products like germs, gluten, fibre and enriched protein. These products are used in food, animal, and other industries as thickening agents, stabilisers, sweeteners, emulsifiers, additives, nutritional ingredients, disintegrants, excipients, supplements, coating agents, etc. As of FY24, it operates two manufacturing facilities at Dhule in Maharashtra and Kutch in Gujarat with an in-house team of 24 engineers. It sells its products in 22 states across India and exports them to 49 countries in Asia, Africa, the Middle East, the Americas, Europe, and Oceania. The company has a diversified sales channel comprising manufacturers of end products, manufacturers of ingredients, agents, or excipients, and distributors or aggregators. It uses ‘Maize’ as its principal raw material and sources it from local farmers near its manufacturing facilities. Between FY22 and FY24, its revenue from operations rose 28%, and its profit 61%. Moreover, the Indian Maize starch market is expected to grow at a CAGR of ~5% between 2023 and 2029, which could benefit the company. And now, Sanstar Limited is coming out with its initial public offer (IPO). The total IPO issue size is ₹510.15 crore, comprising fresh issue, aggregating to ₹397.10 crore, as well as an offer for sale, aggregating to ₹113.05 crore. The money raised from the fresh issue will be utilised to fund the capital expenditure, repay borrowings, and for general corporate purposes. Its shares will be listed on the NSE and BSE. Here are key details about the Sanstar IPO: Company Name Sanstar Limited Limited Company Type Private Company Established On 1982 Sanstar Limited IPO Opening Date 19th July, 2024 Sanstar Limited IPO Closing Date 23rd July,2024 Sanstar Limited IPO Allotment Status 24th July,2024 Credit of Shares to the Demat Account 25th July,2024 Sanstar Limited IPO Listing Date 26th July,2024 Sanstar Limited IPO Face Value ₹2 per share Sanstar Limited IPO Lot Size 150 shares Sanstar Limited IPO Issue Size Approx ₹510 crore Sanstar Limited IPO to be Listed on BSE, NSE Sanstar Limited IPO Price band ₹90 – ₹95 per share Financial snapshot Particulars FY22 FY23 FY24 Income ₹ 504 crore ₹ 1,205 crore ₹ 1,067 crore Net Profit ₹ 15.9 crore ₹ 41.8 crore ₹ 66.7 crore Here’s a quick look at Sanstar Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis) Strengths and opportunities One of India's largest manufacturers of maize-based speciality products and ingredient solutions. These products are used across different industries. Poised to benefit from the growth in end-user industries including food and beverages, animal nutrition, pharmaceuticals, adhesives, personal care, paper, textiles, and others. Strategically located manufacturing facilities with scope for expansion, and located in the maize production belt of Maharashtra and Madhya Pradesh, accounting for 25% of the country’s total maize production. Global presence in a market with high entry barriers due to high capital costs, limited availability of raw materials, requirement of a certain level of capacities, and competition from well established players. Financial growth with EBITDA margins of 7%, 6%, and 9% in FY22, FY23, and FY24, respectively. Large and diversified customer base, having served over 525 customers in FY24 with long lasting relationships with 96 customers over the last three years. Risks and threats Requires extensive working capital during peak arrival season of maize harvesting to store significant quantity of maize, amounting to ₹189 crore in FY24. It is subject to import duties and restrictions, as 35% of its revenue from operations came from export sales in FY24. As of 31 March 2024, it had total outstanding borrowings of ₹127 crore, which imposed certain restrictions on its operations. Many small players have started manufacturing maize starch and derivatives causing pricing pressures in the industry. Dependent on the western region of India for the majority of its sales accounting for 70% of its domestic sales in FY24. Increased demand for maize as a raw material in other sectors, such as feed manufacturers, ethanol manufacturers, and the Food and Beverage industry, might strain the supply of maize. Sanstar Limited IPO details |Sanstar Limited IPO date According to the offer document filed by the company with the SEBI, the Sanstar IPO’s opening date – in other words, the Sanstar IPO launch date – will be 19th July 2024. The Sanstar IPO closing date is 23rd July 2024. After this, investors will be updated about the allotment status on 24th July 2024. Investors who have been allotted shares can expect them to be credited to their demat account on 25th July 2024. The Sanstar IPO listing date is 26th July 2024. The listing date is the date on which a company's shares are listed on the bourses—NSE and BSE. |Sanstar Limited IPO Price Band The IPO is a fresh issue and an offer for sale. The Sanstar IPO price band has been set between ₹90 and ₹95 per share. Interested investors can choose a price within this band to apply for the IPO. The Sanstar IPO listing price will be determined on 26th July 2024. The listing price is the price at which a company’s shares debut on the stock exchanges. |Sanstar Limited IPO Lot size The Sanstar IPO details have been declared. The Sanstar IPO lot size is set at 150 shares, and an investor can apply for a minimum of 1 lot. Meanwhile, the Sanstar IPO issue size is approx ₹510 crore. How to pre-apply for the Sanstar Limited IPO? You can pre-apply for the Sanstar Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription. Follow these steps to pre-apply for the IPO: Login to your Upstox account, using your six-digit PIN After successfully logging in, click on ‘Discover’ On the Discover tab, you will find the ‘Invest in IPO’ section Under the Invest in IPO section, look for the ‘Sanstar Limited IPO’ tab and click on it Now fill in all the required information, like ‘bid price’ and ‘lot size’ Confirm and click on ‘Pre-Apply’ Accept the mandate on your UPI app How to apply for the Sanstar Limited IPO? If you are interested in this investment opportunity but unsure how to apply for the Sanstar Limited IPO, here we are listing out the steps for you. When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Sanstar Limited IPO on Upstox: Login to your Upstox account, using your six-digit PIN After successfully logging in, click on ‘Discover’ On the Discover tab, you will find the ‘Invest in IPO’ section Under the Invest in IPO section, look for the ‘Sanstar Limited IPO’ tab and click on it Now fill in all the required information, like ‘bid price’ and ‘lot size’ Confirm and click on ‘Apply’ Accept the mandate on your UPI app How to check the Sanstar Limited IPO allotment status? When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes. Here’s a step-by-step guide on how to check the Sanstar Limited IPO allotment status: Login to your Upstox account, using your six-digit PIN After successfully logging in, click on ‘Discover’ On the Discover page, you will find the ‘Invest in IPO’ section Under the Invest in IPO section, you will find the ‘View all’ option Once you click on ‘View all’, you will be directed to the ‘IPO’ tab In the ‘IPO’ tab, click on ‘My applications’ In ‘My applications’, under the History section, your Sanstar Limited IPO allotment status will be mentioned Check Allotment Status Open a demat account with Upstox to apply for the Sanstar Limited IPO To apply for the Sanstar Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app. Here is a step-by-step guide on how to open a demat account with Upstox: Click here to visit the demat account opening page on the Upstox website. Enter your phone number and other essential details to begin opening a demat account. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed. Complete the e-verification using the OTP sent to your registered mobile number. This is all it takes to open a demat account with Upstox. Easy and quick, right? Open Demat Account Upstox – trading app to apply for the Sanstar Limited IPO Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India. You can apply for the Sanstar Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero. In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.