Sanstar Limited deployed Rs 46.77 crore of June issue by September

Sanstar had deployed Rs 46.77 crore of its Rs 198.27 crore preferential equity issue by September 30, 2026, leaving Rs 151.50 crore unutilised after the June 24 allotment. It said the balance was temporarily invested in fixed deposits with a scheduled bank or held in a separate account.

How much of Sanstar’s June issue had been used?

Sanstar had used Rs 46.77 crore, or Rs 151.50 crore less than its Rs 198.27 crore issue size, by September 30, 2026. The company completed the preferential issue in the quarter ended June 30, 2026 and reported the proceeds position in its unaudited standalone half-year results released on November 5, 2026.

Sanstar allotted 1,80,24,157 equity shares to Com Products Development Inc. on June 24, 2026, on a private-placement basis. The non-promoter investor received shares with a Rs 2 face value at Rs 110 each, including a Rs 108 securities premium, for aggregate disclosed proceeds of Rs 198.27 crore.

How did Sanstar allocate its Rs 46.77 crore deployment?

Sanstar deployed Rs 32.16 crore for working-capital requirements and Rs 14.61 crore for general corporate purposes by September 30, 2026. Working capital was the larger issue object at Rs 182.20 crore, while general corporate purposes had a smaller Rs 16.07 crore allocation.

The working-capital balance left unused was Rs 150.04 crore at September-end, compared with only Rs 1.46 crore under general corporate purposes. This means Rs 150.04 crore of the overall Rs 151.50 crore unutilised amount remained assigned to working capital, based on the company’s stated proceeds schedule.

Sanstar’s standalone cash-flow statement recorded a Rs 20.50 crore cash outflow from an increase in inventories during the half year ended September 30, 2026. Trade receivables increased by Rs 1.62 crore and trade payables decreased by Rs 6.39 crore over the same half year, but the filing does not link these individual cash-flow movements specifically to preferential-issue money.

Sanstar reports one operating segment, manufacturing and trading of commodities, under Indian Accounting Standard 108 on operating segments. As a result, its September 30 disclosure does not split the Rs 32.16 crore working-capital use by product, plant, customer category or commodity activity.

Where is Sanstar holding the unused issue money?

Sanstar said its Rs 151.50 crore unutilised balance was temporarily invested in fixed deposits with a scheduled bank or held in a separate account as of September 30, 2026. The company did not disclose the amount in each form of holding, deposit maturities, interest rates or the identity of the bank.

Bank balances other than cash and cash equivalents were Rs 271.69 crore at September 30, 2026, compared with Rs 6.62 crore at March 31, 2026. Cash and cash equivalents were Rs 19.12 crore at September-end, versus Rs 109.88 crore at the previous financial year-end; these wider balance-sheet categories are not a direct reconciliation to the Rs 151.50 crore of unutilised issue proceeds.

The half-year cash-flow statement recorded Rs 161.60 crore invested in other bank deposits, against Rs 10.26 crore in the half year ended September 30, 2025. That increase is consistent with temporary placement of unused proceeds, although Sanstar did not state that all Rs 161.60 crore of deposit investments came from the June issue.

What did the June issue change in Sanstar’s balance sheet?

Sanstar’s total equity was Rs 906.70 crore at September 30, 2026, up from Rs 693.93 crore at March 31, 2026, while total assets increased to Rs 1,020.01 crore from Rs 803.04 crore. Equity share capital rose to Rs 40.05 crore from Rs 36.45 crore after the June 24 share allotment.

Other equity stood at Rs 866.65 crore at September 30, 2026, compared with Rs 657.48 crore at March 31, 2026. The issue price included Rs 108 per share of securities premium, but Sanstar did not provide a separate balance-sheet bridge showing the precise impact of the Rs 198.27 crore issue on other equity.

Sanstar’s cash-flow statement reported Rs 197.69 crore of proceeds from a fresh issue of shares in the half year ended September 30, 2026, while its preferential-issue note reported gross proceeds of Rs 198.27 crore. The filing does not explain the Rs 0.58 crore difference between the two disclosed figures.

Conclusion

Sanstar had deployed Rs 46.77 crore from its Rs 198.27 crore preferential issue by September 30, 2026, with Rs 32.16 crore used for working capital and Rs 14.61 crore for general corporate purposes. The remaining Rs 151.50 crore was largely the Rs 150.04 crore still allocated to working-capital requirements.

The next results disclosure should show whether Sanstar applies more of the Rs 150.04 crore working-capital balance, which was temporarily held in deposits or a separate account at September-end. The November 5, 2026 filing gives no deployment deadline, deposit maturity schedule or explanation for the Rs 0.58 crore difference between gross issue proceeds and fresh-share proceeds in cash flows.