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IPO: Sunstar Limited is one of India's leading manufacturers of plant-based specialty products and ingredient solutions. The company's products are used in food, animal nutrition and other industrial applications.
The company has fixed a price band of ₹90/- to ₹95/- per share for its equity shares, with a base price of ₹2/- per share. The initial public offering of the company will open for subscription on July 19, 2024, and close on July 23, 2024. Investors can bid for a minimum of 150 equity shares and in multiples of 150 equity shares thereafter.
The IPO consists of a fresh issue of up to 41.80 million equity shares and an offer for sale of up to 11.90 million equity shares by the promoter and promoter group selling shareholders.
Out of the total proceeds raised from the fresh issue, up to ₹181.55 crore will be used towards meeting capital expenditure requirement for expansion of its Dhule facility, ₹100 crore towards repayment and/or pre-payment of borrowings in part or full by the company and for general corporate purposes.
The Ahmedabad-based company offers a range of co-products including liquid glucose, dry glucose solids, maltodextrin, dextrose monohydrate, native corn starch, modified corn starch and germ, gluten, fiber and corn steep liquor. Their unique products and ingredient solutions enhance the taste, texture and nutritional value of food. The products are used as ingredients, thickening agents, stabilizers, sweeteners, emulsifiers and additives in various food products such as bakery products, confectionery, pasta, soups, ketchup, sauces, creams and desserts. In addition, they offer animal nutrition products that serve as nutritional ingredients and industrial products that act as disintegrants, adjuvants, additives, coating agents, binders, smoothing and flattening agents and finishing agents.
Sanstar operates two manufacturing facilities. The Company operates two manufacturing facilities covering a total area of 10.68 million sq. ft. (approximately 245 acres), one each located in Dhule, Maharashtra and Kutch, Gujarat. These facilities collectively produce 3,63,000 tonnes per annum (1,100 tonnes per day) of installed capacity. The Company ranks among the leading top 5 manufacturers of corn-based specialty products and ingredient solutions in India (Source: Company Commissioned Frost & Sullivan Report, dated May 18, 2024).
The company exports its products to 49 countries in Asia, Africa, Middle East, America, Europe and Oceania and has established a pan-India presence, distributing its products in 22 states.
Based on the company's consolidated financial statements in FY2024, Sanstar's revenue from operations grew at a CAGR of 45.46% from ₹504.40 crores in FY2022 to ₹1,067.27 crores in FY2024, while their profit after tax grew at a CAGR of 104.79% from ₹15.92 crores in FY2024 to ₹66.77 crores in FY2024.
Pantometh Capital Advisors Private Limited is the sole book running lead manager and Link Intime India Private Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.
