Star Agriwarehousing and Collateral Management, a Temasek-backed agricultural marketing firm, has filed its preliminary papers with the Securities and Exchange Board of India (SEBI) to launch an initial public offering (IPO). The company plans to use the funds to meet its working capital needs and strengthen its operations.
The IPO includes a fresh issue of equity shares worth Rs 450 crore and an offer-for-sale (OFS) of 2.69 crore 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.
Currently, the promoters own 88.17% of Star Agriwarehousing, while Claymore Investments holds the remaining 11.83%.
From the fresh issue proceeds, the company plans to allocate Rs 245 crore for working capital, Rs 100 crore to boost the capital of its subsidiary Agriwise Finserv, and the remaining funds for general corporate purposes.
The company may also raise Rs 90 crore through a pre-IPO placement with institutional investors. If it manages to undertake this pre-IPO placement, such amount will be reduced from the fresh issue component.
Based in Mumbai, Star Agriwarehousing provides a range of services including procurement, warehousing, collateral management, financing solutions, and technology-driven data services. The company claims to be the largest revenue-generating and most profitable integrated value chain platform for agricultural commodities during FY22–FY24, with no comparable listed peer.
Star Agriwarehousing has shown strong financial growth. In FY24, its consolidated profit increased by 66.6% to Rs 44 crore, while revenue grew 41.8% to Rs 989.3 crore. For the first quarter of FY25, the company reported a profit of Rs 22.2 crore on revenue of Rs 338.2 crore.
The IPO is being managed by JM Financial, Ambit, and Equirus Capital as the appointed merchant bankers.
