Preferential Issue Details

  • Approval Date: Board of Directors approved on May 28, 2026
  • Allottee: Corn Products Development Inc. (wholly owned subsidiary of Ingredion Incorporated)
  • Issue Type: Preferential allotment of equity shares on private placement basis
  • Issue Size: Approximately ₹198.3 crores
  • Pricing: ₹110 per equity share, as per valuation report in accordance with SEBI ICDR Regulations
  • Resulting Stake: Corn Products Development Inc. will hold approximately 9.0% stake in Sanstar post-completion
  • Conditions: Subject to shareholder approval at Extraordinary General Meeting and requisite stock exchange approvals
  • Legal Framework: Companies Act, 2013 and SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018

Joint Venture Details

  • Execution Date: Definitive shareholders' agreement executed on May 28, 2026
  • JV Partners: Sanstar Limited and Ingredion India Private Limited and Amishi Drugs and Chemicals Private Limited (Ingredion designated subsidiary and associate)
  • JV Structure: Incorporated entity in India as a private limited company
  • Business Scope: Manufacture, sale, and distribution of specialty pharmaceutical and other specialty ingredient products across high-value end use markets
  • Proposed Location: Manufacturing facility location to be finalized; shortlisted states include Gujarat and Maharashtra
  • Governance: Joint governance through Board of Directors/Management Committee with Reserved Matters requiring mutual consent
  • Technology Contribution: Ingredion to contribute proprietary formulation, process technology and global applications know-how; Sanstar to contribute local manufacturing, procurement and regulatory expertise
  • Timeline: Commercial operations targeted within 30 to 36 months of incorporation of JV Entity, subject to receipt of applicable approvals, project implementation, commissioning and other customary conditions

Strategic Rationale

  • Access to Ingredion's global R&D infrastructure, technical expertise, and specialty ingredient formulation capabilities across more than 120 countries
  • Strengthening of Sanstar's balance sheet to accelerate capacity expansion and diversification into value-added specialty product segments
  • Establishment of a long-term partnership aligned with Sanstar's strategic growth roadmap
  • Facilitation of technology transfer in advanced starch derivatives, plant-based ingredients, functional texturant systems and pharmaceutical excipients
  • Enhanced credibility with global customers, including multinational FMCG companies

Management Commentary

Mr. Gouthamchand Chowdhary, Chairman and Managing Director: "This partnership with Ingredion marks a defining chapter in Sanstar's evolution from a leading corn starch manufacturer to a full spectrum specialty ingredients company. The preferential issue brings in a world class, strategic anchor investor, while the Joint Venture will allow us to jointly create high value products for sectors that demand precision, purity, and innovation."

Mr. Jim Zallie, Chairman, President and CEO, Ingredion Incorporated: "India represents an increasingly important growth market for Ingredion. Our partnership with Sanstar expands our presence with a reputable local partner that complements our existing businesses in India with the opportunity to scale a broad specialty ingredients platform."

Company Background

Sanstar Limited: One of India's leading corn-based specialty products and ingredient solutions companies with manufacturing facilities processing maize-based specialty products. Recently commissioned new facility at Dhule plant, increasing total installed capacity from 1,100 TPD to 2,350 TPD.

Ingredion Incorporated: USD 7.2 billion multinational conglomerate, leading global ingredient solutions company headquartered near Chicago, USA, serving customers in more than 120 countries with over 12,000 employees. In January 2026, named to FORTUNE World's Most Admired Companies list for the 16th time.