Sanstar Sets IPO Price Band At Rs 90–95 Per Share

Plant-based speciality products company Sanstar Ltd. has set a price band of Rs 90 to Rs 95 per share for its upcoming initial public offering.

The public issue consists of a fresh issue of 4.18 crore shares and an offer-for-sale component consisting of 1.19 crore shares, according to the red herring prospectus. On the upper end of the price band, the company is looking to raise Rs 510.15 crore via the maiden share sale.

The minimum lot size for bidding will be 150 shares, with further bids to be made in multiples, according to the prospectus. The issue will open for subscription on July 19 and close on July 23. The bidding for the anchor portion will open for a day on July 18.

Gouthamchand Sohanlal Chowdhary, Rani Gouthamchand Chowdhary, and Sambhav Gautam Chowdhary will be among the promoters offloading the shares.

The company received the market regulator's go-ahead to float an initial public offering on May 7. The shares will be listed on the National Stock Exchange and on the BSE. Pantomath Capital Advisors Pvt. is the sole book-running lead manager for the issue.

Proceeds from the fresh issue will be utilised to fund the capital expenditure requirement for the expansion of the company's Dhule facility, debt payment and general corporate purposes.

Sanstar is one of the major manufacturers of plant-based speciality products and ingredient solutions in India. The company's specialty products include liquid glucose, dried glucose solids, maltodextrin powder, dextrose monohydrate, native maize starches among others.

The company's two manufacturing facilities spread across a cumulative area of 10.68 million square feet are located in Maharashtra and Gujarat.