Sanstar receives SEBI's nod to raise funds via IPO; check details

Sanstar IPO: Plant-based speciality products firm Sanstar Limited has received SEBI's approval to raise funds via initial public offering (IPO), an update with the markets regulator showed on Tuesday.

The proposed IPO is a mix of fresh issuance of four crore equity shares and an offer for sale (OFS) component of up to 80 lakh shares by its promoters and promoter group selling shareholders, as per the draft red herring prospectus (DRHP).

The issue size is anticipated to be ₹425-500 crore, market sources told news agency PTI.

The company may also consider a pre-IPO placement of up to 40 lakh equity shares, and if such a placement is completed, the fresh issue size will be reduced.

The Ahmedabad-based company had filed its IPO papers with SEBI in January 2024. It obtained the market regulator's observations on April 30

In SEBI's terminology, obtaining observations means its consent to float the public issue.

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According to draft papers, proceeds from the fresh issue will be used to fund the capital expenditure requirement for expanding the company's Dhule facility, clearing debt and general corporate purposes.

About Sanstar

Sanstar is one of the major manufacturers of plant-based speciality products and ingredient solutions in India. The company's speciality products and ingredients add taste, texture, nutrients, and increased functionality to foods such as ingredients, thickening agents, stabilisers, and sweeteners.

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

The equity shares of the company are expected to be listed on the BSE and the National Stock Exchange (NSE).

The book-running lead manager for the issue is Pantomath Capital Advisors.

With PTI inputs

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