Sanstar Shares Debut At 15% Premium Over IPO Price
With the doubling of capacity, the revenue can potentially more than double by the end of 2026, says Shreyans Chowdhary of Sanstar.
Shares of Sanstar Ltd. listed on the National Stock Exchange on Friday at Rs 109 apiece, a premium of 14.7% over its issue price of Rs 95. On the BSE, the stock debuted at Rs 106.4 per share, a 12% premium over the issue price.
The initial public offering of Sanstar was subscribed 82.99 times on its third and final day, led by demand from non-institutional investors. The IPO consisted of a fresh issue of 4.18 crore shares and an offer for sale of 1.19 crore shares.
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.
Growth Trajectory
The expansion of the company's facilities has already begun and is on track to double capacity by June 2025, Shreyans Gautam Chowdhary, joint managing director of Sanstar, told NDTV Profit.
Chowdhary also expressed confidence in maintaining the company’s growth trajectory and achieving a similar compound annual growth rate over the next three years.
A significant portion of the expansion will focus on higher-value-added derivatives, the second generation of maize-based specialty products, which will drive a corresponding increase in revenue. With the doubling of capacity, the revenue could potentially more than double by the end of 2026, according to Chowdhary.
The company showed strong performance in the export market, with exports worth nearly Rs 400 crore in the last financial year, he said. Chowdhary anticipates that the company would double this figure with the increased capacity.
On the sustainability front, he mentioned that a 3.5-megawatt solar plant was commissioned in March, and a biogas engine is expected to be operational soon, leading to cost savings in renewables.
About Sanstar
Sanstar is a major manufacturer of plant-based specialty products and ingredient solutions in India for food, animal nutrition and other industrial applications.
The company's products include liquid glucose, dried glucose solids, maltodextrin powder, dextrose monohydrate, and native maize starches, among others. Their manufacturing facilities are located at Dhule in Maharashtra and Kutch in Gujarat.
Correction: NSE listing price
