Investor subscribe Sanstar IPO 13.47 times offer size on day 2 of offer

The initial public offer of plant-based speciality products company Sanstar Ltd received 13.47 times subscription on the second day of share sale on Monday.

The Rs 510-crore initial share sale got bids for 50,64,45,900 shares against 3,75,90,000 shares on offer, according to NSE data.

The category for non-institutional investors received 32.84 times subscription while the quota for Retail Individual Investors (RIIs) got subscribed 12.14 times. The portion meant for Qualified Institutional Buyers (QIBs) fetched 1.29 times subscription.

The IPO has a fresh issue of up to 4.18 crore equity shares and an offer for sale of up to 1.19 crore equity shares.

The IPO has a price range of Rs 90-95 per share.

On Thursday, Sanstar Ltd said it has collected Rs 153 crore from anchor investors.

Proceeds from the fresh issue to the tune of Rs 181.55 crore will be utilised to fund the capital expenditure requirement for the expansion of the company's Dhule facility, Rs 100 crore for debt payment and a portion will also be used for general corporate purposes.

Sanstar is one of the major manufacturers of plant-based speciality products and ingredient solutions in the country.

The company's speciality products and ingredients add taste, texture, nutrients and increased functionality to foods as ingredients, thickening agents, stabilisers and sweeteners, among others.

It has an installed capacity of 1,100 tonnes per day through its two manufacturing facilities at Dhule in Maharashtra and Kutch in Gujarat.

The company exports its products to 49 countries across Asia, Africa, the Middle East, the Americas, Europe, and Oceania and has established its presence across India, distributing its products to 22 states.

Pantomath Capital Advisors is the book-running lead manager to the offer.

The equity shares of the company are proposed to be listed on the BSE and the NSE.