About the Company:
Sanstar Limited, established in 1982, stands as a premier producer of specialty plant-based products and ingredient solutions in India. Headquartered in Dhule with two manufacturing facilities located in Dhule and Kutch, the company operates on a sprawling total area of 10.68 million square feet, equivalent to approximately 245 acres.
Product Portfolio
Sanstar Limited's product line includes a wide variety of offerings such as liquid glucose, dried glucose solids, maltodextrin powder, dextrose monohydrate, native maize starches, modified maize starches, and several by-products like germ, gluten, fiber, and fortified proteins. These products serve multiple industries, particularly food, pet food, and various industrial applications.
Applications
- Food Products: Used as ingredients, thickeners, stabilizers, sweeteners, emulsifiers, and additives in baked goods, confectionery, pasta, soups, ketchup, sauces, creams, and desserts.
- Pet Food Products: Serve as nutritional ingredients.
- Industrial Products: Function as disintegrants, excipients, supplements, coating agents, binders, smoothing and flattening agents, and refining agents.
Global and Domestic Reach
Sanstar Limited exports its wide range of products to 49 countries spanning Asia, Africa, the Middle East, America, Europe, and Oceania. Within India, the company has an extensive presence, with its products available in 22 states.
Promoter Holding
- Promoters: Gouthamchand Sohanlal Chowdhary, Sambhav Gautam Chowdhary, and Shreyans Gautam Chowdhary.
- Pre-Issue Share Holding: 99.77%
- Post-Issue Share Holding: 70.37%
Objects of the Issue
The net proceeds from the fresh issue are intended to be used for:
- Funding capital expenditure for expansion.
- Repayment and pre-payment of borrowings.
- General corporate purposes.
Summary of Financial Information:
| Period Ended | 31-Mar-24 | 31-Mar-23 | 31-Mar-22 |
|---|---|---|---|
| Assets | 527.57 | 368.35 | 207.45 |
| Revenue | 1,081.68 | 1,209.67 | 504.77 |
| Profit After Tax | 66.77 | 41.81 | 15.92 |
| Net Worth | 215.91 | 149.28 | 48.97 |
| Reserves and Surplus | 225.18 | 158.41 | 55.69 |
| Total Borrowing | 127.64 | 111.7 | 85.22 |
Comparison with Listed Peers:
| Company Name | P/E | P/B | RoE (%) |
|---|---|---|---|
| Sanstar Ltd | 20 | 6 | 28 |
| Gujarat Ambuja Exports Ltd | 18 | 2 | 15 |
| Gulshan Polyols Ltd | 71 | 2 | 8 |
| Sukhjit Starch & Chemicals Ltd | 15 | 1 | 14 |
Key details of the IPO:
IPO Dates: 19 to 23 July, 2024
Price Band: Rs. 90 to Rs. 95 per share
Lot Size: 150 shares
Listing Date: 26 July, 2024
Total Issue Size: Rs. 510.15 Cr. (Fresh Issue = Rs. 397.10 Cr. )
Retail Quota: 35%
GMP: Rs. 41.50 (Only for information purposes.)
Note: For additional information & risk factors please refer to the Red Herring Prospectus
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Disclaimer: We are not SEBI registered. All the views are personal and only for educational purposes. Do your due diligence before making any trading or investing decisions. The data provided in this blog post is for illustrative purposes only and does not constitute financial advice. Always consult with a qualified financial advisor before making investment decisions.
