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- By Aditya Pratap Singh
- Thu, 04 Jan 2024 06:49 PM (IST)
- Source:JND
Upcoming IPO: Sanstar, a Ahmedabad-based plant-based products manufacturer, filed preliminary documents with the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO). As per media sources, the company is aiming to raise Rs 375-425 crore with the offering.
The IPO will be a combination of a fresh issue of four crore shares and an offer for sale (OFS) of 80 lakh shares.
Sanstar may raise funds through private placement, rights issues or preferential issues of up to 40 lakh shares before filing the red herring prospectus. If the company can raise funds in pre-IPO placements, then the size of the new issue will be reduced.
The gujarat-based company manufactures specialty plant-based products and ingredient solutions for food, animal nutrition and other industrial applications.
The company will spend Rs 1.81 cr to expand its manufacturing facility in Dhule. The company is looking to pay Rs 100 crore debt, as of December 15, the outstanding balance of the company stood at Rs.120.52 crore. The rest of the newly issued money will be earmarked for general corporate purposes.
Sanstar, with a 3.63 lakh tonnes per annum installed capacity, is India's third largest producer of corn-based speciality products and raw material solutions. Sanstar has two manufacturing facilities one at Dhule in Maharashtra and another at Kutch in Gujarat.
The company posted a net profit of Rs 40.74 crore in March FY23, as against Rs 15.92 crore in the previous year. The company's Revenue rose to Rs 759.7 million from Rs 504.4 million. The company has recorded a net profit of Rs 21.82 crore on revenue of Rs 375.4 crore for the six months ended September 24.
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