Sanstar IPO GMP soars ahead of listing on NSE, BSE: What experts predict

Sanstar IPO listing price, date:The unlisted shares of Sanstar Ltd, a leading Indian manufacturer of maize-based specialty products, are commanding a strong premium ahead of their debut on the BSE and NSE. A high GMP indicates solid listing gains for investors. The scheduled listing date of Sanstar IPO shares is Friday, July 26, 2024.

The allotment of Sanstar IPO shares was finalised on Wednesday, July 24, 2024. Available at the price band of Rs 90 - Rs 95 per share and a lot size of 150 shares, Sanstar IPO was subscribed 82.99 times until the final day of subscription on Tuesday, July 23, 2024.

 

Sanstar IPO GMP

According to several websites that track grey market activities, Sanstar shares are trading at a premium of Rs 27-30 or 28  - 32 per cent from the upper end of the issue price of Rs 95. This is slightly lower than the GMP of the last three days.

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Sanstar IPO listing prediction - experts weigh in

Prashanth Tapse, Senior VP (Research), Mehta Equities, said that despite valuations being slightly on the expensive side, Sanstar received a healthy response on the last day of the issue from all types of investors. Tapse believes the investor demand has come from considering an opportunity to invest in one of the leading Indian manufacturers of plant-based specialty products and ingredients derived from maize.

"Considering healthy subscription demand and a unique business matrix, we expect a decent room for listing gain in the range of 22-25 per cent against the issue price of Rs 95 per share. While looking at market mood post-budget, we recommend allotted investors to book profits on listing day,” said Tapse.

The issue appears to be priced aggressively when considering the FY24 earnings, said Amit Goel, Co-Founder & Chief Global Strategist, Pace 360. Goel expects a listing at around Rs 125-130 per share, resulting in a listing gain of around 33 per cent. "With rising demand for its products, the management is confident of improving the trends reported and its performance post expanded capacities. Post listing, we recommend investors book profits," said Goel.

Shivani Nyati, Head of Wealth at Swastika Investmart, said, "While recent market volatility has slightly dampened initial enthusiasm, the company's strong fundamentals position it for a positive listing. Sanstar's diverse product range, strategic manufacturing facilities, and large customer base position it well within the industry. However, challenges like raw material price fluctuations, global market volatility, intense competition, and product concentration need careful consideration. Despite these challenges, the IPO valuation of 20x P/E appears reasonable." Nyati added, "While market conditions have impacted the GMP, Sanstar's solid fundamentals and strong subscription suggest a positive listing."

Sanstar IPO details

Sanstar IPO comprises a fresh issue of 41,800,000 shares aggregating up to Rs 397.10 crore and an offer for sale of 11,900,000 shares aggregating up to Rs 113.05 crore. Investors could bid for a minimum of 150 shares and in multiples thereof. The minimum amount required by a retail investor to subscribe for the Sanstar IPO was Rs 14,250.

About Sanstar Limited

Sanstar Limited is engaged in manufacturing specialty plant-based products and ingredient solutions for food, pet food, and other industrial applications in India. It includes products such as liquid glucose, dried glucose solids, maltodextrin powder, dextrose monohydrate, native maize starches, modified maize starches, and by-products such as germ, gluten, fiber, and fortified proteins.