Investors are crazy about this IPO, it filled 4 times on the first day, they can invest till July 23

New Delhi. The initial public offering (IPO) of Sunstar Limited, a plant-based specialty products and component solutions company, opened today. The issue received strong support from retail investors and non-institutional investors. Quotas for both these categories were fully subscribed within two hours of opening. Overall, Sunstar Limited’s IPO was filled 4.20 times on the first day. As of 5:30 pm on the first day, the Rs 510.15 crore IPO received bids of 15,77,98,350 shares against 3,75,90,000 shares. In the gray market as well, the unlisted shares of Sunstar Limited IPO are trading at a premium of 42 percent.

The Sunstar Limited IPO price band is Rs 90-95 per share. As per the latest data, the retail quota of the IPO received 4.14 times subscription, while the non-institutional investor category received 9.87 times subscription. The Qualified Institutional Buyers (QIB) category received 5 percent of the bids. Investors can bid for shares in the issue till July 23. The company’s shares are likely to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on July 26.

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510.15 crore collection target of Rs
Sunstar Limited intends to raise Rs 510.15 crore through the issue. The company has issued 41,800,000 new shares worth ₹397.10 crore, whereas, existing investors of the company are selling 11,900,000 shares worth ₹113.05 crore through an Offer for Sale (OFS). Sanstar is one of the leading plant-based specialty product and component solutions manufacturers in India. The company’s factories are located at Dhule in Maharashtra and Kutch in Gujarat.

35 percent is reserved for retail investors.
The Ahmedabad-based company has reserved half of its issue for qualified institutional buyers (QIB), 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.

Waves of shares are rising in the gray market.
Sunstar IPO shares are in high demand in the gray market. According to gray market monitoring website IPOwatch.in, the issue was trading at a premium of Rs 40 in the unlisted market today, July 19. Thus, according to the upper price band, the shares of the company are likely to be listed at a price of Rs.135. But, IPO investors should always keep in mind that it is not necessary that if the shares of an IPO are trading at a premium in the gray market, their listing should also be at a premium. The opposite can also happen.

(Disclaimer: Investing in IPOs is subject to market risks. If you wish to invest in any of them, consult a certified investment advisor first. News18 shall not be liable for any profit or loss you may incur. shall not be liable for damages.)

Tags: business news, IPO, Money making tips, Stock market