Star Agri submits IPO papers to Sebi, eyes Rs 450 cr via fresh issue
According to the DRHP, the proposed IPO includes a fresh issue of equity shares worth Rs 450 crore and an Offer-For-Sale (OFS) of 2.69 crore equity shares by existing stakeholders.
Star Agriwarehousing and Collateral Management Ltd, an integrated post-harvest management services company, has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO) to raise funds.
According to the DRHP, the proposed IPO includes a fresh issue of equity shares worth Rs 450 crore and an Offer-For-Sale (OFS) of 2.69 crore equity shares by existing stakeholders. Claymore Investments (Mauritius) Pte, an indirect subsidiary of Temasek Holdings, will offer 1.19 crore shares, while the remaining 1.5 crore shares will be sold by promoters.
Claymore Investments holds an 11.83% stake in the company, with the promoters owning the remaining 88.17%. Additionally, the company is considering raising Rs 90 crore through a pre-IPO placement, which would proportionally reduce the size of the fresh issue if executed.
The Maharashtra-based company intends to allocate Rs 120 crore from the fresh issue to partially meet its working capital requirements and Rs 125 crore to the working capital needs of its subsidiary, FFIPL. Another Rs 100 crore will be invested in its subsidiary, AFL, to strengthen its capital base, with the remainder earmarked for general corporate purposes.
Star Agriwarehousing offers solutions in warehousing, procurement, and collateral management of agricultural commodities. With a network of over 100,000 farmers, 800+ warehouses across 16 states, Star Agri aims to become a strategic link in the global agricultural commodities supply chain. The company has received funding support from Temasek Holdings and IDFC Private Equity.
