Sanstar Ltd Files IPO Proposal with SEBI for Plant-Based Products Expansion

Sanstar Ltd Files IPO Proposal with SEBI for Plant-Based Products Expansion

Asif Iqbal | January 4, 2024 | 08:51 PM IST | Breaking News | Follow on Google News

Sanstar Ltd Files IPO Proposal with SEBI for Plant-Based Products Expansion.image/iStock

Sanstar Ltd Files IPO Proposal with SEBI for Plant-Based Products Expansion

Sanstar Ltd has submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) in anticipation of an upcoming initial public offering (IPO). This Ahmedabad-based enterprise specializes in producing plant-based specialty products and ingredient solutions utilized across various industrial, animal nutrition, and food applications within India.

In this exciting development, Sanstar Limited’s IPO encompasses an offer for sale (OFS) by selling shareholders, involving up to 8 million shares, and a fresh issue of up to 40 million shares. The company may also consider a pre-IPO placement of up to 4 million shares, contingent upon discussions with the Book Running Lead Manager (BRLM). The face value of a company share is ₹2.

The proposed utilization of fresh issue proceeds includes funding part of the capital expenditure required for expanding the Dhule facility, amounting to approximately ₹182 crores. Additionally, the remaining net proceeds, up to ₹100 crores, are earmarked for specific borrowing repayment and/or prepayment. Any net proceeds beyond expenses will be directed towards general corporate needs and issue costs.

In the fiscal year 2023, the company reported consolidated revenue of approximately ₹1,180 crores, with an EBITDA of about ₹73 crores and a Profit After Tax (PAT) of roughly ₹42 crores. The company’s Return on Equity (ROE) and Return on Capital Employed (ROCE) stood at approximately 28% and 24%, respectively. On a stand-alone basis, revenue, EBITDA, and PAT demonstrated a Compound Annual Growth Rate (CAGR) of around 57%, 39%, and 71%, respectively, between FY21 and FY23.

Sanstar boasts a global presence, exporting its products to over 45 nations across the Middle East, Africa, Asia, Americas, Europe, and Oceania. Notably, more than 30% of the company’s total revenue is derived from exports. The company’s Kutch facility holds registration with the US Food and Drug Administration (USFDA), underlining its commitment to quality standards.

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Asif Iqbal

Asif Iqbal is a seasoned news writer with a passion for delivering the latest updates to the public. Currently serving as the senior writer at VoM News, a prominent news outlet known for its comprehensive coverage of diverse topics, Asif has established himself as a reliable source of information. With a keen eye for detail and a knack for storytelling, he consistently provides readers with well-crafted articles that cover a wide range of news categories. His dedication to journalistic integrity and his commitment to staying ahead of the news curve make him an invaluable asset to Vom News, ensuring that readers are always well-informed on the issues that matter most. You can find his work and stay updated on current events by visiting vomnews.in.