Temasek-backed Star Agriwarehousing files DRHP for IPO with SEBI

Star Agriwarehousing and Collateral Management Limited has filed its draft red herring prospectus (DRHP) with the capital market regulator, Securities and Exchange Board of India (SEBI), for an initial public offering (IPO).

The company operates as a technology-driven integrated agricultural value-chain services platform. It focuses on a range of essential services including procurement, trade facilitation, warehousing, collateral management, and financing solutions. Additionally, it offers a digital marketplace and technology-based value-added data services aimed at enhancing efficiency and productivity within the agricultural sector. Through these services, the company aims to streamline operations and support stakeholders across the value chain.

Issue Details

The IPO consists of fresh issuance of equity shares valued at ₹450 crore, along with an offer for sale of 2.69 crore equity shares from current shareholders.

Claymore Investments (Mauritius) Pte, an indirect wholly owned subsidiary of Temasek Holdings, is set to be the largest selling shareholder, contributing 1.19 crore equity shares to the offer. The promoters will also participate by selling the remaining 1.5 crore shares in this offering.

Currently, the promoters hold 88.17 percent of Star Agriwarehousing's shares, while Claymore Investments holds the remaining 11.83 percent.

The company plans to allocate ₹245 crore from the fresh issue proceeds to meet its working capital needs. Additionally, ₹100 crore will be designated for strengthening the capital base of its subsidiary, Agriwise Finserv. The remaining funds will be used for various general corporate purposes.

The company has demonstrated impressive financial performance in recent years. For the fiscal year 2024, consolidated profit experienced substantial growth, climbing 66.6% to ₹44 crore. Revenue also saw a significant increase, rising by 41.8% to ₹989.3 crore compared to the previous fiscal year. In the first quarter of fiscal 2025, the company achieved a profit of ₹22.2 crore on revenues of ₹338.2 crore, reflecting a positive trajectory.

JM Financial, Ambit, and Equirus Capital have been strategically appointed as the merchant bankers.

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