Global investment company Temasek-backed Star Agriwarehousing and Collateral Management plans to approach the primary market for raising funds for its working capital requirements, as it has filed preliminary papers with the capital markets regulator SEBI on December 4.
The agricultural marketing company offers procurement, trade facilitation, warehousing, collateral management, financing solutions, digital marketplace and technology-based value added data services.
The IPO comprises of fresh issuance of equity shares worth Rs 450 crore and an offer-for-sale of 2.69 crore equity shares by existing shareholders.
Claymore Investments (Mauritius) Pte, an indirect wholly owned subsidiary of Temasek Holdings, will be the largest selling shareholder offloading 1.19 crore equity shares via offer-for-sale, and remaining 1.5 crore shares will be sold by promoters in the offer-for-sale.
Promoters' shareholding in the Star Agriwarehousing stands at 88.17 percent and the remainder 11.83 percent shares are owned by Claymore Investments.
The Mumbai-based company may raise Rs 90 crore from institutional investors before the IPO launch. If it manages to undertake this pre-IPO placement, such amount will be reduced from the fresh issue component.
It intends to spend Rs 245 crore out of the fresh issue proceeds for working capital requirements, Rs 100 crore for capital augmentation of subsidiary Agriwise Finserv, and the remainder funds for general corporate purposes.
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Star Agriwarehousing, which provides warehousing, procurement and collateral management of agri commodities, claimed to be the largest by revenue and the most profitable technology led integrated value chain services platform during FY22-FY24. It does not have comparable peer in the listed space.
Its financial performance remained strong in the past years with consolidated profit in the fiscal 2024 growing 66.6 percent to Rs 44 crore and revenue rising 41.8 percent to Rs 989.3 crore as compared to previous fiscal. Profit in the first quarter of fiscal 2025 stood at Rs 22.2 crore on revenue of Rs 338.2 crore.
JM Financial, Ambit, and Equirus Capital are appointed as the merchant bankers to the issue.
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