🚀 GMP IPO Launching Soon!
Plant-based specialty products company Sainstar Limited is all set to launch its IPO soon. The company has received approval from SEBI for this purpose. According to the draft red herring prospectus, 4 crore new equity shares will be issued under this IPO.
Additionally, promoters and shareholders will offer 80 lakh shares for sale under the offer for sale. Market sources estimate the IPO size to be between 425-500 crores.
The Ahmedabad-based company submitted IPO documents to SEBI in January this year. The company received a scrutiny letter on April 30. It is mandatory for any company to obtain a scrutiny letter before launching an IPO.
The company may also consider a pre-IPO placement of 40 lakh equity shares. Upon completion of such placements, the size of the new IPO will be reduced. The funds raised from the new issue will be utilized to meet the capital expenditure requirements for expanding the company’s facilities.
In addition, the funds will be used for loan repayment and general corporate purposes. Sainstar is a leading manufacturer of plant-based specialty products and material solutions in India.
The company’s daily capacity is 1,100 tons across two manufacturing plants in Dhule, Maharashtra, and Kutch, Gujarat. The proposal to list the company’s equity shares on BSE and NSE is underway. Pantomath Capital Advisors is the sole book-running lead manager for the IPO.
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