Specialty products and ingredients solutions maker, Sanstar, is set to open its maiden initial public offering (IPO) for subscription on July 19, 2024. The company will be accepting bids for its maiden listing till July 23, 2024.
The firm has fixed the price band of the issue at Rs 90-95 per share and it intends to raise Rs 510.15 crore via the offering. The offer comprises a fresh issue of 4.18 crore equity shares worth Rs 397.1 crore and an offer-for-sale (OFS) of 1.19 crore shares worth Rs 113.05 crore being offered by the promoters, reported Moneycontrol.
The OFS will see Rani Gouthamchand Chowdhary offloading 38 lakh equity shares,while Richa Sambhav Chowdhary and Samiksha Shreyans Chowdhary will offer 33 lakh equity shares each. Other shareholders diluting their stake are Gouthamchand Sohanlal Chowdhary, Shreyans Gautam Chowdhary, and Sambhav Gautam Chowdhary, each offloading 5 lakh shares.
The company is based out of Ahmedabad and has allotted more than half of its issue size to qualified institutional investors. Meanwhile, retail investors will be allowed to bid for 35 per cent of the issue, and the remaining 15 per cent has been kept aside for non-institutional investors (high net worth individuals).
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The firm intends to utilise Rs 181.6 crore worth funds from the issue to expand its Dhule facility, while Rs 100 crore will be kept aside towards debt repayment. The remaining funds would be utilised for general corporate purposes. As of May 24, 2024, the company’s dues stood at Rs 164.23 crore.
The company’s net profit surged 60 per cent to Rs 66.8 crore in the 2023-24 fiscal year (FY24), against Rs 41.8 crore logged in the preceding fiscal year. EBITDA of the company increased by 35.5 per cent to touch Rs 98.1 crore in FY24.
The final allotment of the listing shares will be completed by July 24, 2024, while the company will make its debut in the stock market on July 26, 2024. The issue’s book-running lead manager is Pantomath Capital Advisors, while Link Intime India is the registrar.