Sanstar Ltd has secured in-principle approval from BSE Limited and National Stock Exchange of India Limited to issue 1,80,24,157 equity shares on a preferential basis. The shares will be issued to Corn Products Development Inc., a non-promoter, at a price of ₹110 per share, including a premium of ₹108. The face value of each equity share is ₹2.

The approval, granted on June 15, 2026, is subject to the company fulfilling specific conditions, including filing a listing application within twenty days from the date of allotment. Sanstar Ltd must also obtain statutory and other approvals from authorities such as SEBI, RBI, and MCA, and comply with the Companies Act, 2013, and the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (ICDR Regulations).

Regulatory Conditions and Compliance

Both exchanges have advised Sanstar Ltd to strengthen internal controls to monitor trades executed by the proposed allottee before the allotment of securities. The company is required to obtain an undertaking from the allottee confirming that they will not engage in intra-day trading or sell any shares in the company until the allotment date. This measure is intended to ensure compliance with Chapter V of the SEBI ICDR Regulations.

The responsibility for verifying the allottee's trading activities and ensuring compliance with Regulation 167(6) of the SEBI ICDR Regulations, 2018, rests solely with the issuer company. Any non-compliance observed by the exchanges post-verification could impact the listing of these shares.

Issue Details

The preferential allotment involves the issuance of 1,80,24,157 equity shares. The issue price of ₹110 per share comprises a face value of ₹2 and a premium of ₹108. The in-principle approval does not constitute approval for the listing of the securities, and the company must separately comply with all requirements for listing.

Sanstar Ltd must submit the listing application and applicable fees without delay following the allotment. The exchanges reserve the right to withdraw the in-principle approval if the information provided is found to be incomplete, incorrect, or misleading.

Sanstar Limited has re-published a newspaper advertisement in the Financial Express (Gujarati) on June 1, 2026, intimating shareholders about its Extraordinary General Meeting (EGM). The EGM is scheduled on June 20, 2026, at 11:00 a.m. IST through Video Conferencing or Other Audio Visual Means (VC/OAVM) to seek approval for a preferential issue of equity shares aggregating to ₹198.3 crores. The issue is priced at ₹110 per equity share, including a premium of ₹108, and is directed towards Corn Products Development Inc., a wholly owned subsidiary of Ingredion Incorporated. Post-allotment, the investor will hold approximately 9.0% stake in the company.

The Board of Directors approved the proposal on May 28, 2026. The proceeds are intended for working capital requirements and general corporate purposes, with deployment expected in FY 2026-27. As the issue size exceeds ₹100 crores, Acuité Ratings & Research Limited has been appointed as the monitoring agency to oversee fund utilization in accordance with SEBI regulations. The company has also proposed increasing its authorized share capital from ₹38 crores to ₹50 crores to facilitate this fundraise.

The remote e-voting facility will commence on June 17, 2026, at 9:00 a.m. IST and conclude on June 19, 2026, at 5:00 p.m. IST. Shareholders recorded in the register of members or beneficial owners as on the cut-off date of June 15, 2026, are entitled to vote. The advertisement was disclosed to the exchanges under Regulation 30 and Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Transaction Summary

Joint Venture Overview

Simultaneously, Sanstar and Ingredion have executed a definitive shareholders’ agreement to establish a jointly owned entity in India for the manufacture, sale, and distribution of specialty pharmaceutical and other specialty ingredient products. The Joint Venture partners include Sanstar, Ingredion India Private Limited, and Amishi Drugs and Chemicals Private Limited. The proposed entity will be incorporated as a private limited company, with manufacturing locations shortlisted in Gujarat and Maharashtra. Commercial operations are targeted within 30 to 36 months of incorporation, subject to applicable approvals.