Sanstar IPO: Size 510 crores, share price Rs 95 and GMP 47%, will you invest in this IPO?

Upcoming IPO / Trending IPO :Another mainboard IPO is opening for subscription on the last trading day of this week i.e. Friday, July 19. Sunstar Limited’s Initial Public Offer i.e. IPO will open on July 19. Investment can be made in it till July 23. The size of the IPO is Rs 510 crore, while the company has fixed the price band at Rs 90-95 per share. Apart from fresh equity, it also has OFS. Sunstar shares will be listed on BSE and NSE on July 26, 2024.

About IPO

Sunstar plans to raise Rs 510.15 crore from the market through its IPO. In the IPO, the company is issuing 41,800,000 fresh equity shares worth Rs 397.10 crore. Whereas, the existing investors of the company will sell 11,900,000 shares worth Rs 113.05 crore through Offer for Sale i.e. OFS. The company will use the money raised from the IPO for capex required for expansion, payment of debt and other company purposes.

Craze in grey market right now

Sunstar’s IPO will open for subscription on July 19, but craze is already visible in the grey market about it. The company’s unlisted stock is at a premium of Rs 45 in the grey market. This is a 47 per cent premium to the upper price band of Rs 95. If this indication is correct, then the stock may be listed at Rs 135 as compared to the IPO price of Rs 90.

How much reserve for whom

35% of Sunstar’s IPO is reserved for retail investors. 50% is reserved for qualified institutional buyers (QIB). 15% is reserved for non-institutional buyers (NII). The lot size of this IPO is 150 shares. This means that retail investors will have to invest at least Rs 14,250. The maximum amount that can be invested is Rs 199,500.

Allotment of shares will be done on July 24, 2024. While refund and credit in demat account will be done on July 25, 2024. Listing of shares will be done on July 26, 2024.

How are the company’s financials

In the financial year 2022, the company’s revenue, expense and PAT were Rs 504.77 crore, Rs 482.78 crore and Rs 15.92 crore. Whereas in the financial year 2023, this data is Rs 1209.67 crore, Rs 1154.28 crore and Rs 41.81 crore. Whereas in the financial year 2024, the revenue and expense were Rs 1081.68 crore, Rs 991.96 crore and Rs 66.77 crore.

what the company does

This Ahmedabad-based company manufactures liquid glucose, dried glucose solids, maltodextrin powder, dextrose monohydrate, indigenous maize starch, refined maize starch, gluten, fibre and protein among other products. The company has two production units in Kutch in Gujarat and Dhule in Maharashtra. As of May 18, 2024, the company’s total production capacity was 3,63,000 tonnes per annum (1,100 tonnes per day).