SanStar submits documents to SEBI in order to generate money via an initial public offering (IPO)

 SanStar submits documents to SEBI in order to generate money via an initial public offering (IPO)

SanStar submits documents to SEBI in order to generate money via an initial public offering (IPO)

SanStar IPO: The public offering consists of an 80 lakh share offer for sale in addition to a new four crore equity share issuance.

Sanstar, a plant-based product company located in Ahmedabad, has submitted preliminary documents to the Securities and Exchange Board of India (SEBI) in order to seek money via an initial public offering (IPO). Moneycontrol was informed by sources that the business hopes to raise between Rs 375 and Rs 425 crore via the sale.

An offer for sale (OFS) of 80 lakh shares by the Chaudhary family would be combined with a new issuance of four crore shares to make up the IPO.

Prior to publishing the red herring prospectus, the corporation may also think about raising money via a private placement, rights issue, or preferential offer of up to 40 lakh equity shares. The amount of the new offering will be lowered if the firm is able to raise money via the pre-IPO placement.

Sanstar, a company that produces plant-based speciality goods and ingredient solutions for food, animal nutrition, and other industrial uses, plans to expand its Dhule factory and pay off a Rs. 100 crore debt with an investment of Rs. 181.55 crore. The total amount of outstanding borrowings for the firm was Rs 120.52 crore as of December 15.

The proceeds from the remaining new offering will be put aside for general business needs.

Sanstar, which has an installed capacity of 3.63 lakh tons annually, ranks third in India for producing specialist goods and component solutions based on maize. Its two production sites are located in Gujarat's Kutch and Maharashtra's Dhule.

For the fiscal year that ended in March of 2013, SanStar declared a net profit of Rs 40.74 crore, up from Rs 15.92 crore the year before. From Rs 504.4 crore to Rs 759.7 crore, revenue grew. On sales of Rs 375.4 crore, it declared a net profit of Rs 21.82 crore for the six-month period ending in September of FY24.

Pantomath Capital Advisors serves as the issue's merchant banker.