Plant-based speciality products company Sanstar Ltd has received Sebi’s go-ahead to float an initial public offering, an update with the markets regulator showed on Tuesday.
The proposed initial public offering (IPO) comprises a fresh issue of 4 crore shares and an Offer For Sale (OFS) of up to 80 lakh shares by its promoters and promoter group selling shareholders, according to the draft red herring prospectus (DRHP).
According to market sources, the IPO size is expected to be Rs 425-500 crore.
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
The Ahmedabad-based company, which filed its draft IPO papers with Sebi in January this year, obtained its observations on April 30, as per the update.
In Sebi’s parlance, obtaining observations means its go-ahead to float the public issue.
Going by the draft papers, proceeds from the fresh issue will be utilised to fund the capital expend
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