Sanstar Shares Surge 15% on Debut Trade

New Delhi, Jul 26 (PTI) Shares of plant-based speciality products company Sanstar Ltd on Friday listed with a premium of nearly 15 per cent against the issue price of Rs 95.

The stock started the trade at Rs 106.40, up 12 per cent from the issue price on the BSE. It further jumped 33.15 per cent to Rs 126.50.

At the NSE, it opened the trade at Rs 109, a jump of 14.73 per cent.

The initial public offer of Sanstar Ltd received 82.99 times subscription on the closing day of the share sale on Tuesday amid massive participation from institutional buyers.

The Rs 510-crore initial share sale had a fresh issue of up to 4.18 crore equity shares and an offer for sale of up to 1.19 crore equity shares.

The IPO had a price range of Rs 90-95 per share.

Proceeds from the fresh issue to the tune of Rs 181.55 crore will be utilised to fund the capital expenditure requirement for the expansion of the company's Dhule facility, Rs 100 crore for debt payment and a portion will also be used for general corporate purposes.

Sanstar is one of the major manufacturers of plant-based speciality products and ingredient solutions in the country.

The company's speciality products and ingredients add taste, texture, nutrients and increased functionality to foods as ingredients, thickening agents, stabilisers and sweeteners, among others.

It has an installed capacity of 1,100 tonne per day through its two manufacturing facilities at Dhule in Maharashtra and Kutch in Gujarat.

The company exports its products to 49 countries across Asia, Africa, the Middle East, the Americas, Europe, and Oceania and has established its presence across India, distributing its products to 22 states.