Sanstar Limited is one of the major manufacturers of plant-based specialty products and ingredient solutions in India for food, animal nutrition and other industrial applications. Sanstar IPO is set to raise Rs 510.15 crores. The issue is a combination of fresh issue of 4.18 crore shares aggregating to Rs 397.10 crores and offer for sale of 1.19 crore shares aggregating to Rs 113.05 crores.
IPO opens
July 19, 2024
IPO Closes
July 23, 2024
IPO Size (Rs.)
₹510.15 Cr
IPO Size (shares)
53,700,000 shares
Breakup
Fresh issue only
Face Value:
₹ 2
IPO Price in Rs :
₹90 to ₹95 per share
Minimum Lot
150 Shares
Listing At
NSE , BSE (mainboard)
QIB
~50 %
NII Quota
~15%
Retail Quota
~35%
Lead Manager
Pantomath Capital
Registrar
Link Intime
Sanstar Limited : Notes
Sanstar Limited is one of the major manufacturers of plant-based speciality products and ingredient solutions in India for food, animal nutrition and other industrial applications.
Their products include liquid glucose, dried glucose solids, maltodextrin powder, dextrose monohydrate, native maize starches, modified maize starches and co-products like germs, gluten, fiber and enriched protein, amongst others. Company’s speciality products and ingredients solutions add taste, texture, nutrients and increased functionality to (i) foods as ingredients, thickening agents, stabilizers, sweeteners, emulsifiers and additives (in bakery products, confectionery, pastas, soups, ketchups, sauces, creams, deserts, amongst others), (ii) animal nutrition products as nutritional ingredients, and (iii) other industrial products as disintegrants, excipients, supplements, coating agents, binders, smoothing & flattering agents, finishing agents, among others. With an installed capacity of 3,63,000 TPA,
Sanstar is the 5th largest manufacturer of maize based speciality products and ingredient solutions in India.
Sanstar Limited IPO: Financials
Particulars/ Rs (in crore)
2024
2023
2022
Revenue from Operations
1,067.27
1,205.07
504.4
Revenue Growth (%)
-11.44%
138.91%
–
EBITDA
98.14
41.81
15.92
EBITDA Margin (%)
9.20%
6.01%
7.87%
Net Profit
66.77
41.81
15.92
Net Profit (%)
6.17%
3.46%
3.15%
Equity Share Capital
28.09
28.09
29.5
Net Worth
215.91
149.28
48.97
Total Borrowings
127.64
111.7
85.22
NAV (₹)
15.37
10.63
3.32
Post issue Share Capital
36.45
FV
2.0
IPO price
95.0
EPS Fy23
2.3
PE Fy23
41.4
EPS Fy24
3.7
PE Fy24
25.9
Market cap in Lacs
1,731
Market cap / Sales
1.44
Anchor Book: Sanstar Limited IPO
Salientb Points: Sanstar Limited IPO
Due to OFS promoter 100% stake will drop to 71%.
The Rs. 397 cr Fresh Issue proceeeds will be used for
capex Rs. 182 cr
Debt repayment Rs. 100 cr . Debt stood at f Rs. 164 cr. as of May 2024.
Sanstar Limited manufactures maize based specialty products like liquid glucose, dried glucose solids, maltodextrin powder, dextrose monohydrate, native maize starches, modified maize starches, gluten, fibre and bran. These are used for food, animal nutrition and industrial applications like pharma, paper, apparel, personal care etc.
Breakdown of Gross Revenue from Operations from various industry segments,
Food 58%
Animal Nutrition 10.5%
Other industrial applications : 31.5%
Export sales have been increasing, stand as follows for the last year
Exports Sales
3,944.38 Million
35.53%
Compared to listed peers
Company/ FY24 figures
CMP Rs.
Revenue Rs. Cr
Net Profit Rs. Cr
NPM (%)
PE
Macp/sales
RoNW(%)
Sanstar Limited
95
1,081.68
66.77
6.2%
25.9
1.44
30.92
Gujarat Ambuj Exports
346
4,927
346
7.0%
17.9
1.25
12.49
Gulshan Polyols
346
1,378
18
1.3%
68
0.88
2.3
Sukhjit Starch
480
1,375
50
3.6%
15
0.54
9.94
Sanstar is a recognised 2-Star Export house from Director General of Foreign Trade, GoI, while Sanstar Biopolymers Ltd, the erstwhile Company which was merged with the company pursuant to NCLT, Ahmedabad order dated 23-11-2023, was a recognised 3-Star Export House.
Company exported their products to 49 countries across Asia, Africa, Middle East,Americas, Europe and Oceania. Additionally, the company products are being sold in 22 states in India.
Their leading position in the industry, technical knowledge to bring specific functionality and nutrition to end products, more than 5 decades of presence, state of the art manufacturing facilities, diverse product portfolio and clientele in domestic and global markets, provide them with competitive advantage.
Group company Sanstar Biopolymers Limited Company was merged in Nov 2023 with the company. This will add to profts in the coming years.
I intend to apply in Sanstar Limited IPO. The company got a good response from anchor investors. Its installed capacity will almost double by 2026 and this shall catapult the company to the third largest Maize product manufacturer from the 5h position at present.
GMP as reported on social media has been Rs. 35 (36%)
This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.
