Sanstar Shares Surge on Strong Market Debut

Sanstar made a strong entrance in the stock market today, with its shares opening on a positive note. On the National Stock Exchange (NSE), the stock started trading at ₹109 per share, which marks a significant increase of 14.73% from its issue price of ₹95. Meanwhile, on the Bombay Stock Exchange (BSE), Sanstar shares opened at ₹106.40 each, reflecting a growth of 12% from the same price.

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Market experts had predicted Sanstar’s share price would debut between ₹125 and ₹130. The company’s Initial Public Offering (IPO) had garnered a remarkable response, with subscription rates reaching an impressive 82.99 times by the end of the bidding period on July 23.

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On the last day of the auction, qualified institutional buyers (QIBs) showed tremendous interest, subscribing 145.68 times. Non-institutional investors (NIIs) also made their mark with a subscription rate of 136.50 times, while retail investors subscribed 24.23 times.

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Sanstar Limited specializes in creating unique plant-based products and ingredient solutions across various sectors, including pet food, food, and industrial uses. Their offerings include liquid glucose, dried glucose solids, maltodextrin powder, and other by-products such as germ and gluten.

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The company seeks to raise ₹510.15 crore through this IPO, which consists of a new issue of 4.18 crore equity shares valued at ₹397.1 crore and an offer-for-sale (OFS) of 1.19 crore shares priced at ₹113.05 crore by the promoters.

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Prominent shareholders such as Rani Gouthamchand Chowdhary plan to sell 38 lakh equity shares through the OFS. Other promoters, including Richa Sambhav and Samiksha Shreyans Chowdhary, are each offloading 33 lakh shares, while Gouthamchand Sohanlal Chowdhary and others are selling 5 lakh shares each.

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The net proceeds raised from the new issue are intended for general corporate purposes, repayment of some of the company’s debts, and funding the expansion of the Dhule Facility.

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Pantomath Capital Advisors Private Ltd is leading the book-running for the IPO, with Link Intime India Private Ltd serving as the registrar for the offer. Additionally, the grey market premium for Sanstar is around ₹25, indicating that shares were trading higher than the issue price prior to listing.

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As of today, Sanstar’s estimated listing price, based on grey market activities over the last two weeks, was projected at ₹120 per share, representing a 26.32% rise from the IPO price of ₹95.