Sanstar's ₹181 Cr IPO Boost for Maharashtra Plant

Sanstar, a leading maize-based specialty products manufacturer from Ahmedabad, is set to raise ₹510 crore through an IPO. A significant portion of these funds, ₹180 crore, will be directed toward expanding its Dhule, Maharashtra plant. This expansion will increase the facility’s capacity by an additional 1,000 tonnes per day, with the project expected to be completed by July 2025.

Sambhav Chowdhary, Joint Managing Director of Sanstar, stated that the total investment for the Dhule expansion is ₹200 crore, with ₹20 crore already allocated. Sanstar's expansion aims to boost its overall maize processing capacity from 1,100 TPD to 2,100 TPD, enhancing its ability to supply key ingredients to major FMCG companies and other industries.

Sanstar's clientele includes industry giants like ITC, Hindustan Unilever, and Godrej Agrovet. The company manufactures a variety of maize-based products, such as starch, dextrin, and liquid glucose, catering to the food, pharmaceutical, and animal nutrition sectors. The expansion will support increasing demand, particularly for plant-based and vegan food products.

The company, which generated ₹1,100 crore in revenue last fiscal year, is heavily export-oriented, with 35% of its earnings coming from international markets. Sanstar exports to 49 countries, including Malaysia, Kenya, and Vietnam.

In addition to the facility expansion, Sanstar will use ₹100 crore from the IPO to reduce its existing debt of ₹140 crore. The remaining IPO funds will support further growth initiatives.

News by Rahul Yelligetti