Sanstar IPO: Shares list at premium on NSE, BSE; should you book profit?

Sanstar shares make a poitive debut on BSE, NSE: Shares of maize-based specialty products manufacturer Sanstar Limited made a positive debut on the bourses on Friday. Sanstar's shares listed at a premium of 10.83 per cent at Rs  106.40 on the BSE, compared to the issue price of Rs 95. Meanwhile, on the NSE, the company's shares listed at Rs 109, yielding a return of Rs 14 or 14.75 per cent apiece to investors after listing.

The grey market premium (GMP) of Sanstar IPO shares soared nearly 26 per cent ahead of its listing on the BSE and NSE, indicating solid listing gains for the investors

Despite market headwinds, the IPO received an overwhelming response, with a subscription of 82.99 times, reflecting strong investor interest in the company's growth prospects," said Shivani Nyati, Head of Wealth at Swastika Investmart Ltd.

Nyati believes that Sanstar's listing, while not reaching the initial hype, is a positive development. "The company's strong fundamentals and investor interest provide a solid foundation for future growth. Investors may hold their position at the issue price," Nyati added.

Prashanth Tapse, Senior VP (Research) at Mehta Equities, said, "Despite the market being on a positive note, Sanstar's listing was below our listing expectation of 22-25 per cent, while post-listing, the stock is heading towards our expectation." 

Despite the market's upbeat mood, we still continue to recommend that allotted investors book profits on listing day, he said, and continued, "We are not comfortable with the valuations, which were slightly on the expensive side compared to other listed peers."

Sanstar IPO details

The public issue of Sanstar comprised a fresh issue of 41,800,000 shares, aggregating to Rs 397.10 crore, and an offer for sale of 11,900,000 shares, aggregating to Rs 113.05 crore. The Sanstar IPO was priced at a band of Rs 90-95 per share, with a lot size of 150 shares. The public issue received massive demand from investors, getting subscribed 82.99 times by the final day of subscription on Tuesday, July 23, 2024. The allotment of Sanstar IPO shares was finalized on Wednesday, July 24, 2024.

About Sanstar Limited

Sanstar Limited manufactures specialty plant-based products and ingredient solutions for food, pet food, and other industrial applications in India. Some of its products include liquid glucose, dried glucose solids, maltodextrin powder, dextrose monohydrate, native maize starches, modified maize starches, and by-products such as germ, gluten, fiber, and fortified proteins.

Standard Glass to raise Rs 600 cr via IPO, files DRHP with Sebi
 

Standard Glass Lining Technology Limited on Friday said it has filed a Draft Red Herring Prospectus (DRHP) with the capital markets regulator Securities Exchange Board of India (Sebi) to raise Rs 600 crore through an initial public offering (IPO). The firm in the DRHP said the public issue comprises a fresh issue of shares with a face value of  Rs 10, aggregating up to Rs 250 crore.