Sanstar IPO Listing Today: Plant-based speciality products company Sanstar Ltd on Friday made its stock market debut with 12 per cent gains. On the BSE, the company’s shares opened at Rs 106.4 apiece as against its issue price of Rs 95. However, the share prices increased further and traded at Rs 112.28 as of 10:05 am.
The Sanstar IPO, which was opened for subscription between July 19 and July 23, received an 82.98 times subscription, garnering bids for 3,11,93,83,050 shares as against 3,75,90,000 shares on offer.
The price band of the 510.15-crore initial public offering (IPO) was fixed at Rs 90-Rs 95 apiece.
Shivani Nyati, head of wealth, Swastika Investmart Ltd, said, “Sanstar Limited, the manufacturer of maize-based specialty products, made a solid debut on the stock market, listing at Rs. 109 per share, a 14.74% premium over its issue price of Rs. 95. While this performance is positive, it falls short of pre-listing expectations, likely influenced by the broader market volatility following the budget announcement.”
Despite the market headwinds, the IPO received an overwhelming response, with an 82.99 times subscription, reflecting strong investor interest in the company’s growth prospects. Sanstar’s diverse product range, strategic manufacturing facilities, and large customer base have contributed to this positive sentiment, she added.
However, the company’s exposure to raw material price fluctuations, global market volatility, and intense competition necessitates careful monitoring, she also said.
“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.
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