Sanstar IPO listing: Shares list at 14.7% premium to issue price on NSE

Sanstar shares made a decent debut on the stock exchanges on Friday. The stock opened at a premium of 14.7% at ₹109 per share as against the issue price of ₹95 on the National Stock Exchange. It gained 12% to ₹106.4 apiece on the BSE (formerly Bombay Stock Exchange).

The portion for qualified institutional buyers (QIBs) was subscribed 145.68 times, while the non-institutional investors (NIIs) category was subscribed 136.5 times. The part set aside for retail investors got 24.23 times the subscription.

The IPO was a mix of fresh issue of 4.18 crore equity shares worth ₹397.1 crore and an offer for sale (OFS) component of up to 1.19 crore equity shares aggregating to ₹113.05 crore.

The Ahmedabad-based firm had set a price band of ₹90-₹95 per share. Before the IPO, Sanstar had also raised ₹153 crore from anchor investors.

The fresh issue proceeds, totalling ₹181.5 crore, will be used to fund the capital expenditure requirement for the expansion of the Dhule facility, ₹100 crore for debt repayment, and general corporate purposes.

About Sanstar

Sanstar is one of the country's top manufacturers of plant-based speciality products and ingredient solutions.

The company's speciality products and ingredients add taste, texture, nutrients and increased functionality to foods as ingredients, thickening agents, stabilisers and sweeteners, among others.

It has an installed capacity of 1,100 tonnes per day through its two manufacturing facilities at Kutch in Gujarat and Dhule in Maharashtra.

The company exports its products to 49 nations across Asia, Africa, the Middle East, the Americas, Europe, and Oceania and has established its presence across India, distributing its products to 22 states.