Sanstar shares jump over 21% in debut trade

The stock started the trade at ₹106.40, up 12% from the issue price on the BSE. During the day, it jumped 34.4% to ₹127.68. Shares of the firm ended at ₹115.09, reflecting a surge of 21.14%.

On the NSE, it opened the trade at ₹109, a jump of 14.73%. The stock ended at ₹115.19 apiece, up 21.25%.

The company's market valuation stood at ₹2,097.45 crore.

The initial public offer of Sanstar Ltd received 82.99 times subscription on the closing day of the share sale on Tuesday amid massive participation from institutional buyers.

The ₹510-crore initial share sale had a fresh issue of up to 4.18 crore equity shares and an offer for sale of up to 1.19 crore equity shares.

The IPO had a price range of ₹90-95 per share.

Proceeds from the fresh issue to the tune of ₹181.55 crore will be utilised to fund the capital expenditure requirement for the expansion of the company's Dhule facility, ₹100 crore for debt payment and a portion will also be used for general corporate purposes.

Sanstar is one of the major manufacturers of plant-based speciality products and ingredient solutions in the country.

The company's specialty 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 Dhule in Maharashtra and Kutch in Gujarat.

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