Sanstar Limited IPO Garners Strong Investor Interest on Day 1 of Bidding

On the first day of bidding, the initial public offering (IPO) of Sansar Limited has caught the attention of investors with strong interest witnessed in the market. The company, specializing in pet foods ingredients, has set its price band for the IPO between ₹90 to ₹95 per equity share for the book build issue to be listed on both BSE and NSE.

Market observers have reported a premium of ₹42 in the grey market for shares of Sansar Limited, indicating a positive outlook among investors. By 2:48 PM on the opening day, the book build issue had been oversubscribed 2.93 times, showcasing the robust demand for the IPO.

Sansar Limited’s IPO size aims to raise ₹510.15 crore, with ₹113.05 crore reserved for offer for sale (OFS). The company’s manufacturing facilities in Dhule, Maharashtra, and Kutch, Gujarat, boast a combined annual production capacity of 3,63,000 tons.

The company’s products, including liquid glucose, dried glucose solids, and maize starches, are exported to over 50 countries globally, underscoring its wide reach and market presence. With a workforce of 271 individuals, Sansar Limited positions itself as the fifth largest producer of corn-based specialty products in India.

Link Intime India Private Limited has been appointed as the official registrar for the IPO, which is expected to be listed on BSE and NSE. The share allocation following the close of the bidding process is anticipated on July 24, 2024, with a probable listing date set for July 26, 2024.

Analysts, including Amit Goel from Pace 360, have given favorable reviews of the IPO, citing the company’s growth trajectory and financial performance. SBI Securities, DR Choksey, and Swastika Investmart have also recommended subscribing to the issue, emphasizing the potential for long-term investment gains.