Ahmedabad-based Sanstar files DRHP for IPO with SEBI

  • Sanstar Limited, an Ahmedabad-based company, plans to raise funds through an IPO with a fresh issue of up to 40 million shares and an offer for sale of 8 million shares.

Dhanya Nagasundaram
First Published4 Jan 2024, 05:30 PM IST
Sanstar Ltd files draft red herring prospectus for IPO with SEBI, consisting of offer for sale by selling shareholders and fresh issue of shares. Photo: iStock
Sanstar Ltd files draft red herring prospectus for IPO with SEBI, consisting of offer for sale by selling shareholders and fresh issue of shares. Photo: iStock

Sanstar Ltd has filed its draft red herring prospectus (DRHP) with the capital market regulator, Securities and Exchange Board of India (SEBI), for an initial public offering (IPO).

Sanstar Limited, an Ahmedabad-based business, produces plant-based specialty products and ingredient solutions for use in industrial, animal nutrition, and food applications in India.

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Also Read: IPO fundraising drops 17% in 2023; issues worth around 70,000 crore in pipeline this year

The IPO consists of an offer for sale (OFS) by the selling shareholders for up to 8 million shares and a fresh issue of up to 40 million shares. A pre-IPO placement of up to 4 million shares may be considered by the company, subject to consultation with the Book Running Lead Manager (BRLM). A share of the company's equity has a face value of  2.

The capital expenditure required for the expansion of the Dhule facility would be funded in part by the fresh issue proceeds up to approximately 182 crores, while the remaining net proceeds up to 100 crores would be used for particular borrowing repayment and/or prepayment. Net proceeds remaining after expenses would be applied to general corporate needs and issue costs.

Also Read: Kaushalya Logistics IPO allotment to be out soon; GMP steady, steps to check Kaushalya IPO allotment status

On a consolidated basis, the company's revenue during FY 2023 was approximately 1,180 crores, its EBITDA was about 73 cores, and its Profit After Tax (PAT) was roughly 42 crores. The Company's ROE and ROCE were around 28% and 24%, respectively. When compared on a stand-alone basis, revenue, EBITDA, and PAT increased at a CAGR of approximately 57%, 39%, and 71%, respectively, between FY21 and FY23.

Sanstar exports to more than 45 nations in the Middle East, Africa, Asia, Americas, Europe, and Oceania. Exports account for more than 30% of the company's total revenue. The company's Kutch facility is registered with the US Food and Drug Administration (USFDA), which is noteworthy.

Also Read: Jyoti CNC Automation IPO: Price band set at 315-331 per share; check GMP, issue details, more

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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First Published:4 Jan 2024, 05:30 PM IST
HomeMarketsIPOAhmedabad-based Sanstar files DRHP for IPO with SEBI

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