Preferential Issue and Joint Venture Press Release
SANSTAR · price
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Sanstar Limited's Board has approved a preferential issue of equity shares worth approximately Rs. 198.3 crores to Corn Products Development Inc., a wholly owned subsidiary of Ingredion Incorporated. Post completion, Ingredion will hold approximately 9.0% stake in Sanstar. 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 JV will combine Ingredion's proprietary formulation technology with Sanstar's local manufacturing and regulatory expertise. Commercial operations are targeted within 30-36 months of incorporation.
This partnership brings in a world-class strategic anchor investor and positions Sanstar to transform from a corn starch manufacturer into a full spectrum specialty ingredients company, potentially creating significant long-term value for shareholders.