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The initial public offering (IPO) of Sanstar Limited, a company seeking to raise ₹510.15 crore, opened on July 19th, 2024, and is set to close on July 23rd. The company aims to utilize the funds for debt repayment, strengthening its balance sheet, and expanding capacity to fuel growth. The IPO has received strong interest from investors, evidenced by a subscription level of 4.16 times after the first day of bidding.
The grey market premium (GMP) for Sanstar Limited shares has also been bullish, currently standing at ₹46. This signifies that investors are willing to pay a premium over the IPO price to acquire shares in the secondary market. The GMP is attributed to the robust subscription status and the company's growth prospects, despite a generally weak sentiment in the Indian stock market.
Several leading brokerage firms, including Master Capital Service, BP Equities, Adroit Financial Services, Arihant Capital, Canara Bank Securities, DR Choksey, Marwadi Shares and Finance, Nirmal Bank, Reliance Securities, Sushil Finance, and Ventura Securities, have recommended subscribing to the Sanstar Limited IPO. The analysts highlight the company's plans to expand its capacity, its strong subscription level, and the fair valuation compared to its listed peers.
The Sanstar Limited IPO allotment date is expected to be July 24th, 2024, and the listing date is likely to be July 26th, 2024, based on the 'T+3' listing rule. However, it is important to note that the views and recommendations presented in the article are those of individual analysts and brokerages, not Mint. Investors are encouraged to consult with certified financial advisors before making any investment decisions.
Source: Sanstar Limited IPO: GMP jumps after strong subscription status. Apply or not?