Sanstar Ltd, a company specializing in plant-based products, has been granted approval by Sebi to launch its initial public offering, as revealed in an update from the markets regulator on Tuesday. The IPO plan includes a fresh issue of 4 crore shares and an Offer For Sale (OFS) of up to 80 lakh shares by its promoters and promoter group selling shareholders, as disclosed in the draft red herring prospectus (DRHP).
According to market sources, the IPO size is expected to range between INR 425 crore to INR 500 crore.
Additionally, the company may explore a pre-IPO placement of up to 40 lakh equity shares. Should this placement be finalized, it will result in a reduction of the fresh issue size.
The Ahmedabad-headquartered company, which submitted its draft IPO documents to Sebi in January this year, obtained its observations on April 30, as per the latest update.
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In Sebi’s terms, obtaining observations signifies approval to proceed with the public issue.
Based on the draft documents, funds raised from the fresh issue will be allocated towards fulfilling the capital expenditure needs for expanding the company’s Dhule facility, repaying debts, and covering general corporate expenses.
Sanstar stands as a key manufacturer of plant-based specialty products and ingredient solutions within India. Its range of specialty products and ingredients enhances the taste, texture, nutritional value, and functionality of various foods, serving as ingredients, thickening agents, stabilizers, sweeteners, and more.
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With two manufacturing facilities located in Dhule, Maharashtra, and Kutch, Gujarat, Sanstar boasts an installed capacity of 1,100 tonnes per day.
The company will be selling its equity shares on the NSE as well as on the BSE.
Pantomath Capital Advisors is exclusively serving as the book-running lead manager for the IPO.
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