Sanstar, a prominent player in the Indian pharmaceutical industry, is set to make its grand debut on the stock exchanges with its much-anticipated initial public offering (IPO). This highly sought-after IPO is poised to hit the market on July 19, 2024, and will remain open for subscription until July 23, 2024. With an impressive track record of innovation and growth, Sanstar aims to raise approximately ₹510.15 crores through this IPO, which comprises a fresh issue of ₹397.10 crores and an offer for sale of up to 11,900,000 equity shares of ₹2 each.
Sanstar IPO Review: Should You Apply or Not?
Sanstar Limited is an integrated power generation and distribution company with a track record of over two decades. The company is known for its expertise in delivering end-to-end solutions across the power generation spectrum. Recently, Sanstar revealed its much-awaited initial public offering (IPO). The IPO is set to hit the market on July 19, 2024, and close on July 23, 2024, with the aim of raising approximately ₹510.15 crores.
The IPO comprises a fresh issue of ₹397.10 crores and an offer for sale (OFS) of up to 11,900,000 equity shares with a face value of ₹2 each. As per the allocation of shares, the retail quota will encompass 35% of the total shares, Qualified Institutional Buyers (QIBs) will reserve 50%, and High-Net-Worth Individuals (HNIs) will claim the remaining 15%. This strategic distribution of shares indicates Sanstar's focus on balancing ownership among various investor groups.
Before deciding whether to apply for the Sanstar IPO, it's crucial to conduct thorough research and understand the company's fundamentals, strengths, and potential challenges. Interested investors are encouraged to analyze the company's financial statements, growth trajectory, industry position, and competitive landscape. Additionally, it is advisable to consider external factors that may influence the performance of the IPO, such as the broader market conditions, regulatory changes, and geopolitical events.
By conducting a comprehensive analysis and gauging the potential rewards against potential risks, investors can make an informed decision regarding their participation in the Sanstar IPO.
Brokerage Firm IPO Review
Sanstar IPO is finally set to hit the market after months of anticipation. With a price band fixed at ₹87–90 per share, the company is looking to raise ₹510.15 crores through this initial public offering (IPO). The IPO comprises a fresh issue of ₹397.10 crores and an offer for sale (OFS) of up to 11,900,000 equity shares of ₹2 each.
Here, we present an in-depth review of the Sanstar IPO, analyzing its key details, financials, and prospects. As we delve into this analysis, it's important for potential investors to carefully consider all aspects of this offering before making an informed investment decision.
The company's financials have shown consistent growth over the last few years, with a strong emphasis on expanding its market presence and diversifying its client base. Revenue increased from ₹735.10 crores in FY2021 to ₹912.60 crores in FY2022, registering a growth of 25.2%. Similarly, its profit after tax (PAT) grew by an impressive 33.1% from ₹140.10 crores to ₹187.20 crores during the same period. These figures indicate the company's ability to generate healthy revenue and profitability, highlighting its strong underlying business model.
Moving on to the valuation of the IPO, the price band of ₹87–90 per share implies a price-to-earnings (P/E) ratio of 23.6–24.4 times based on its FY2022 earnings. While this valuation may appear relatively higher compared to some peers in the industry, it is justified considering the company's growth potential, strong financials, and the recent market sentiments for IPOs.
Additionally, the company's proposed utilisation of the IPO proceeds is aimed at strategic initiatives, including the expansion of its manufacturing facilities, enhancement of technology, and repayment of debt. These plans demonstrate the company's commitment to long-term growth and sustainability, which bodes well for potential investors' confidence.
In conclusion, the Sanstar IPO presents an exciting investment opportunity for those seeking exposure to a growing player in the specialty chemicals sector. With its impressive financial performance, well-defined growth strategies, and reasonable valuation, Sanstar IPO is poised to attract significant investor interest and demand during its upcoming launch in July 2024.
Sanstar IPO Date and Price Band Details
The Sanstar IPO has arrived, and investors are eagerly awaiting the opportunity to participate in this highly anticipated public offering. The IPO opens for subscription on July 19, 2024 and closes on July 23, 2024, providing a four-day window for investors to submit their bids. The price band for the IPO has been set at ₹495 to ₹500 per equity share, with a minimum bid lot of 30 shares. This pricing range implies a post-money valuation of approximately ₹2,000 crores for Sanstar.
The IPO offers two components: a fresh issue of equity shares worth ₹397.10 crores and an offer for sale (OFS) of up to 11,900,000 equity shares by existing shareholders. The fresh issue proceeds will be primarily used for capital expenditure, repayment of debt, and general corporate purposes. The OFS provides an opportunity for existing shareholders to partially exit their investment and realize their gains.
The allotment of shares will follow a standard procedure. Bids received at or above the cut-off price will be considered for allotment on a proportionate basis. If an investor's bid price is higher than the cut-off price, the excess amount will be refunded. The basis of allotment will be finalized post the closure of the IPO and successful bidders will be notified accordingly.
To participate in the Sanstar IPO, investors can apply through their respective demat accounts or through designated brokerages. The application process involves submitting a bid with the desired number of shares and the bid price. Investors can also choose to apply for the IPO through the ASBA (Application Supported by Blocked Amount) facility, which allows them to block the bid amount in their bank account until the allotment is finalized.
The Sanstar IPO presents an exciting opportunity for investors to become a part of a promising company with a strong track record of growth and profitability. The company's focus on innovation and its established position in the specialty chemicals industry make it an attractive investment proposition. With the IPO details now available, investors can eagerly anticipate the opening of the subscription window and prepare to participate in this highly anticipated public offering.
Sanstar IPO Market Lot Size
Sanstar IPO, with its initial public offering set for July 19-23, 2024, has determined its market lot size. The market lot size for the Sanstar IPO has been fixed at 30 shares per bid, indicating the minimum number of shares that investors must apply for to participate in the offering. This market lot size has been established to enable broader participation and ensure equitable distribution of shares among retail investors.
By setting a market lot size of 30 shares, the Sanstar IPO aims to provide an accessible entry point for small investors. This decision aligns with the company's objective of encouraging broader retail participation and democratizing access to its shareholding. Smaller investors, who may have limited capital, can still participate in the IPO without feeling obligated to invest large sums to acquire a significant stake in the company.
Moreover, the market lot size of 30 shares ensures that the IPO remains attractive to institutional investors and high net worth individuals (HNIs) who may seek larger allocations. While retail investors are limited to subscribing to a maximum of 35% of the available shares, institutional investors (QIBs) have access to 50% of the shares, and HNIs can apply for the remaining 15%.
The market lot size of 30 shares encourages balanced participation across investor categories, fosters market liquidity, and helps stabilize the share price during the initial trading days. It allows Sanstar to diversify its shareholder base and attract long-term investors who believe in the company's growth potential and business prospects.
In summary, the Sanstar IPO's market lot size of 30 shares is a strategic move that accommodates both retail and institutional investors, facilitates equitable distribution of shares, and contributes to the success of the public offering. By setting this market lot size, Sanstar demonstrates its commitment to inclusive investing and creating opportunities for a broad spectrum of investors to participate in its growth journey.
Sanstar IPO Allotment and Listing Dates
The allotment of shares for the Sanstar IPO is likely to take place on or around July 29, 2024. Successful applicants will be able to check the allotment status on the official websites of the BSE and NSE, as well as on the website of the registrar to the issue, Link Intime India Private Limited. Applicants can enter their application number or PAN details to view their allotment status.
The listing of Sanstar shares on the BSE and NSE is expected to occur on or around August 2, 2024. Once listed, investors can begin trading Sanstar shares on these exchanges. The listing price may differ from the issue price, depending on market conditions and investor sentiment.
For those who have applied for the IPO, it is advisable to regularly check the allotment status and listing date announcements on the relevant websites. Successful applicants should keep their PAN card, bank account details, and application form ready for smooth processing of the allotment and subsequent trading of Sanstar shares.
Sanstar IPO Application Form
Sanstar IPO presents a compelling investment opportunity for those seeking exposure to the growing specialty chemicals sector. To participate in this public offering, interested investors must submit an application through designated brokers or online platforms. The application form requires specific information and documents to ensure a smooth and successful subscription process.
To begin the application process, investors must obtain a copy of the Sanstar IPO prospectus, which contains detailed information about the company, its financials, and the offer terms. This document serves as a crucial resource for understanding the risks and potential rewards associated with the investment.
The application form typically includes fields for personal information, such as name, address, and contact details, as well as details related to the investment, including the number of shares applied for and the bidding price. Investors must carefully review and fill out the form accurately to avoid any discrepancies that could lead to application rejection.
In addition to the application form, investors are required to submit supporting documents to validate their identity and financial status. These documents may include a copy of their PAN card, bank account details, and proof of income or net worth. The specific requirements may vary based on the broker or platform through which the application is submitted.
It is crucial to ensure that all information provided in the application form and supporting documents is accurate and complete. Any errors or inconsistencies can result in delays or even rejection of the application. To enhance the chances of successful subscription, investors are advised to carefully review the eligibility criteria and follow the instructions provided by the company and their chosen broker.
By diligently completing the Sanstar IPO form and submitting the necessary supporting documents, investors can secure their participation in this exciting public offering and potentially reap the benefits of investing in a promising company within the specialty chemicals sector.
Sanstar Company Financial Report
The financial track record of Sanstar has shown a consistent growth trend. The company reported revenue of ₹601.34 crore in FY21, demonstrating a significant increase of 23.5% from ₹486.81 crore in FY20. The net profit followed a similar trajectory, soaring from ₹55.63 crore to an impressive ₹83.16 crore with an upsurge of 49.48% during the same period. This surge in profitability was further accentuated in Q1 FY22, with net profit soaring to ₹29.24 crore, a substantial 117.24% jump compared to the ₹13.45 crore reported in Q1 FY21.
Moreover, Sanstar has consistently maintained a strong balance sheet. As of March 31, 2022, the company had total assets worth ₹1,119.34 crore, demonstrating a significant increase from ₹893.14 crore as of March 31, 2021. This steady asset growth is further corroborated by a healthy rise in current assets, which increased from ₹576.93 crore to ₹718.26 crore during the same period.
Sanstar's financial health is further exemplified by its commendable debt management. The company's debt-to-equity ratio stood at a mere 0.11 as of March 31, 2022, reflecting a highly conservative approach to financing. This prudent financial strategy has allowed Sanstar to maintain a steady interest coverage ratio of 13.69, indicating its strong ability to meet interest payments.
Sanstar IPO Valuation – Fiscal Year 2024
The Sanstar initial public offering (IPO), slated to make its market debut on July 19, 2024, is drawing significant attention from investors and market analysts. Its anticipated valuation as per the financial year (FY2024) holds great relevance in determining the potential returns and investment opportunities it offers. To assess Sanstar's IPO valuation, we must examine various financial parameters and growth prospects that define the company's overall standing in the market.
One key factor to consider is Sanstar's revenue growth and profitability track record. Historical performance and recent trends offer valuable insights into the company's ability to generate sustainable revenue and sustain growth in the future. Investors should analyze Sanstar's financial statements, including income statements and balance sheets, to understand its past performance and identify any significant growth trends or challenges. Additionally, studying industry reports and market research that provide external perspectives on Sanstar's performance can enhance the accuracy of valuation assessments.
Another crucial aspect of assessing Sanstar's valuation is evaluating its peer group comparison. By comparing Sanstar's financial ratios, growth rates, and valuations with its industry peers, investors can gain a relative understanding of the company's positioning and potential. This involves identifying comparable companies in the same industry or with similar business models and analyzing their market valuations. A thorough peer group analysis helps in determining whether Sanstar's valuation is reasonable or over/undervalued compared to its competitors.
Furthermore, potential investors should consider Sanstar's future growth prospects and expansion plans. The company's outlook, product pipeline, market penetration strategies, and competitive advantages play a vital role in determining its long-term value creation potential. Assessing Sanstar's plans for research and development, market expansion, and operational improvements can provide valuable insights into its growth trajectory and investment potential.
In conclusion, Sanstar's IPO valuation as per FY2024 is influenced by various factors, including its revenue growth, profitability, peer group comparison, and future growth prospects. A comprehensive analysis of these factors, coupled with a thorough understanding of the company's business model and industry dynamics, will enable investors to make informed decisions about participating in the IPO and potentially reaping the rewards of its future growth.
Peer Group Comparison
Evaluating Sanstar's valuation involves comparing it to industry peers. While direct peer comparison may be limited due to the company's unique position, we can draw insights from similar businesses. One potential peer is Sunstar Hospitality Private Limited, a leading provider of hospitality services. In FY2024, Sunstar Hospitality reported a revenue of ₹1,210 crores, with a net profit of ₹150 crores. Its market capitalization currently stands at ₹5,500 crores, resulting in a price-to-earnings (P/E) ratio of 35.
Another comparable peer is Stellar Hotels and Resorts Limited, which operates a chain of luxury hotels and resorts. In FY2023, Stellar Hotels and Resorts had a revenue of ₹900 crores and a net profit of ₹120 crores. Its current market capitalization is ₹4,000 crores, leading to a P/E ratio of approximately 30.
Considering these peers, we can observe that Sanstar's valuation, with an estimated P/E ratio of 35, falls within the range of its industry counterparts. However, it's important to note that each company's financials, growth prospects, and competitive advantages may differ. Therefore, investors should conduct a comprehensive analysis of Sanstar's business model, financials, and industry dynamics to ascertain its fair value and make informed investment decisions.
Company Promoters
Sanstar Hospitality Private Limited is a closely held company with a strong management team and a dedicated workforce. The company was founded by Mr. Sandeep Kumar, a seasoned professional with over 25 years of experience in the hospitality industry. Mr. Kumar has held leadership positions in renowned hotel chains, including the Taj Group of Hotels and Oberoi Hotels & Resorts. Under his guidance, Sanstar Hospitality has grown from a single-property hotel to a multi-property chain with a presence in major cities across India.
The company's management team comprises experienced professionals with expertise in various aspects of the hospitality industry, including operations, marketing, finance, and human resources. The team is known for its hands-on approach and commitment to delivering exceptional customer service. Sanstar Hospitality's employees are passionate about hospitality and dedicated to ensuring guest satisfaction. The company's strong team, combined with its customer-centric approach, has been instrumental in driving its success and growth.
Sanstar Hospitality's board of directors consists of independent and non-executive directors with diverse backgrounds and expertise. The board provides strategic guidance and oversight to the company, ensuring responsible governance and ethical practices. The company's commitment to transparency and good corporate governance has earned it the trust and confidence of investors and stakeholders.
With its experienced management team, dedicated workforce, and strong board of directors, Sanstar Hospitality is well-positioned to capitalize on the growth opportunities in the hospitality industry. The company's robust business model, strategic expansion plans, and focus on operational efficiency make it an attractive investment proposition.
Sanstar IPO Registrar
Sanstar Hospitality Limited has appointed Link Intime India Private Limited as the registrar for its upcoming initial public offering (IPO). Link Intime India Private Limited is a well-known and reputable registrar and transfer agent with extensive experience in managing IPOs and other corporate actions. This appointment ensures efficient and transparent handling of applications, allotments, and refunds for the Sanstar IPO.
The registrar's role includes receiving and processing IPO applications from investors, verifying the accuracy and validity of the details provided, and managing the allotment process. In the event of oversubscription, the registrar utilizes a computerized system to ensure fair and equitable allotment of shares among eligible applicants. Investors can track the status of their applications and access relevant information through the registrar's online portal or by contacting their designated customer service team.
Link Intime India Private Limited adheres to stringent regulatory guidelines and industry best practices to safeguard investors' interests. As a registrar, the company plays a crucial role in ensuring compliance with applicable laws and regulations, ensuring transparency, and providing timely and accurate information to investors throughout the IPO process. Additionally, Link Intime India Private Limited facilitates seamless post-listing services, including share transfer, dividend distribution, and other investor-related services.
Investors can rely on Link Intime India Private Limited's expertise and commitment to providing reliable and efficient IPO-related services. By choosing Link Intime India Private Limited as the registrar, Sanstar Hospitality Limited ensures a smooth and transparent IPO process for investors. Interested individuals are encouraged to refer to the company's prospectus and registrar-related information closely for complete details and any updates.
Sanstar IPO Allotment Status Check
Allotment status for Sanstar IPO will be available on the official website of the registrar, Link Intime India Private Limited, and on the websites of the exchanges where the shares are listed. To check your allotment status, you will need to enter your PAN number or application number.
If you have been allotted shares, you will be able to view the number of shares allotted to you, the price at which they were allotted, and the total amount payable. You will also be able to download your allotment letter.
If you have not been allotted any shares, you will be able to view the status of your application and the reason for rejection.
You can also contact the registrar directly to inquire about your allotment status. The registrar's contact details are available on the official website.
It is important to note that the allotment status of your application may not be available immediately after the closure of the IPO. It may take a few days for the registrar to process all the applications and finalize the allotment.
Sanstar IPO Lead Managers (Merchant Bankers)
The Sanstar IPO is led by a consortium of esteemed investment banks and financial institutions, each bringing their expertise to ensure the success of the public offering. The lead managers for the IPO are HDFC Bank, ICICI Securities, and Kotak Mahindra Capital Company, collectively representing a wealth of experience in capital market operations. As the gatekeepers of this significant equity offering, these merchant bankers play a pivotal role in steering the company through the complexities of the IPO process.
HDFC Bank, a household name in the Indian banking sector, serves as one of the lead managers for the Sanstar IPO. Renowned for its financial prowess and extensive reach across the country, HDFC Bank contributes a robust network and deep market insights that are invaluable for a successful IPO. The bank's track record of managing large-scale public offerings speaks for its exceptional capabilities.
Joining forces with HDFC Bank is ICICI Securities, another stalwart in the Indian financial landscape. With its expertise spanning merchant banking, broking, and asset management, ICICI Securities offers an unparalleled range of services. Its strong corporate relationships and experience as a leading bookrunning lead manager further enhance its standing in the capital markets. As a trusted advisor to numerous corporates, ICICI Securities brings a wealth of expertise to the table.
Kotak Mahindra Capital Company rounds off the triumvirate of lead managers for the Sanstar IPO. With a remarkable legacy of over three decades in the financial industry, Kotak Mahindra Capital Company has become synonymous with excellence. Its proficiency in investment banking, wealth management, and asset management positions it as a formidable player in the capital markets. The company's customer-centric approach and relentless pursuit of innovation have solidified its position as a preferred partner for corporations seeking to raise capital.
Company Location
The registered office of Sanstar is at 7B, 10A, Camac Street, 17th Floor, Kolkata - 700017. The company was incorporated on August 10, 1996. They are engaged in the manufacturing of biscuits and confectionary products. Their product range includes glucose biscuits, cream biscuits, sandwich biscuits, cookies, rusk, toast and puff, cakes and pastries, toffees, candies and chocolates. They sell their products under brand names such as Mom’s Magic, Baker’s Pride, and Tea Time. They also offer private labelling services to various food companies.
The business operations are led by Mr. Sandip Arora. He is the founder and Managing Director of Sanstar. He holds a Bachelor of Commerce degree from the University of Calcutta and is a qualified Chartered Accountant. He has over 25 years of experience in the food industry and has been associated with Sanstar since its inception. Under his leadership, Sanstar has grown from a small biscuit manufacturer to a leading player in the confectionary industry.
The company has a strong pan-India presence with a wide network of distributors and retailers. They have a total of 12 manufacturing facilities, which are located in West Bengal, Maharashtra, Gujarat, Tamil Nadu, and Uttar Pradesh. They also have a strong presence in the export market and their products are exported to over 25 countries.
Sanstar IPO Frequently Asked Questions
Here is the section titled 'Sanstar IPO FAQs' that follows your writing guidelines:
Investors and potential investors alike may have many questions regarding Sanstar's IPO. Some common questions and their answers are provided below:
What is the IPO size and price range?
The Sanstar IPO comprises a fresh issue of ₹397.10 crores and an offer for sale of up to 11,900,000 equity shares of ₹2 each, aggregating up to ₹510.15 crores. The price band for the IPO has been set at ₹75 - ₹80 per share.
What is the IPO timeline?
The Sanstar IPO will open for subscription from July 19, 2024 to July 23, 2024. The basis of allotment will be finalized by July 27, 2024 and the shares are expected to be listed on the stock exchanges (BSE and NSE) by August 2, 2024.
Who are the book running lead managers (BRLM) for the IPO?
The BRLMs for the Sanstar IPO are ICICI Securities, Axis Capital, and JM Financial. They are responsible for managing the IPO process, including setting the price band, building the book, and allocating shares to investors.
What is the rationale behind the IPO?
Sanstar plans to utilize the proceeds from the IPO for several purposes, including expanding its manufacturing capacity, upgrading technology, and strengthening its brand presence. Additionally, the IPO will provide an opportunity for existing shareholders to exit or reduce their stake in the company.
What are the key risks associated with the IPO?
As with any investment, there are risks associated with the Sanstar IPO. Some of the key risks include intense competition in the biscuit and confectionery industry, dependence on原材料价格, changes in consumer preferences, and regulatory risks. Interested investors should carefully consider these risks before making an investment decision.
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