Plant-based speciality products company Sanstar Ltd has filed its draft papers with capital markets regulator Sebi to raise Rs 425-500 crore through an initial public offering.
The total size of the Initial Public Offering (IPO) is up to 4.80 crore equity shares, comprising a fresh issue of up to 4 crore shares and an Offer For Sale (OFS) of up to 80 lakh shares by its promoters and promoter group selling shareholders.
As part of the OFS, Gouthamchand Sohanlal Chowdhary, Rani Gouthamchand Chowdhary, Sambhav Gautam Chowdhary, Shreyans Gautam Chowdhary, Richa Sambhav Chowdhary and Samiksha Shreyans Chowdhary will offload the shares of the company, as per the draft red herring prospectus (DRHP).
Also, the company may consider a pre-IPO placement of up to 40 lakh equity shares. If such placement is completed, the fresh issue size will be reduced.
According to market sources, the IPO size is expected to be Rs 425-500 crore.
Going by the draft papers, proceeds from the fresh issue will be utilised to fund the capital expenditure requirement for the expansion of the company's Dhule facility.
A portion of the proceeds will be used for debt repayment availed by the company and general corporate purposes.
Ahmedabad-based Sanstar is one of the major manufacturers of plant-based speciality products and ingredient solutions in India.
The company's speciality products and ingredients add taste, texture, nutrients and increased functionality to foods as ingredients, thickening agents, stabilizers, and sweeteners, among others.
It has an installed capacity of 1,100 tonnes per day through its two manufacturing facilities at Dhule in Maharashtra and Kutch in Gujarat.
The equity shares of the company are proposed to be listed on the BSE and NSE.
Pantomath Capital Advisors is the sole book-running lead manager, and LinkIntime India is the registrar for the IPO.