Star Agriwarehousing and Collateral Management Limited Files DRHP with SEBI for IPO

Varahi media.com online news,December 7th,2024: Star Agriwarehousing and Collateral Management Limited, a technology-driven integrated agricultural value-chain services provider, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI).

The filing is part of the company’s plan to raise funds through an Initial Public Offering (IPO).The IPO comprises a Fresh Issue of ₹450 crore (₹4,500 million) and an Offer for Sale (OFS) of up to 26,919,270 equity shares, making up the total offer size.

The net proceeds from the fresh issue will be used for the following purposes:

Working Capital Requirements:
- ₹120 crore for Star Agriwarehousing.
- ₹125 crore for its material subsidiary, FFIPL.
Capital Augmentation:
- ₹100 crore infusion in its subsidiary, AFL.
General Corporate Purposes.

The Offer for Sale includes equity shares from the following:

Promoter Selling Shareholders: Amith Agarwal (1,318,126 shares), Amit Goyal (4,393,754 shares), Amit Khandelwal (15,005 shares), and Suresh Chandra Goyal (1,500,000 shares).
Promoter Group Selling Shareholders: Devkinandan Gupta, Sri Krishna Agarwal, Pramod Agarwal, Sumitra Devi Goyal, and Ankush Gupta.
Investor Selling Shareholders: Claymore Investments (Mauritius) Ltd, contributing 11,980,508 shares.

According to the F&S Report, Star Agriwarehousing leads the integrated agricultural services sector by revenue and profitability for FY 2022-2024. It also dominates the agricultural commodity-based financing segment (collateral management) in India, with an AUM ranging between ₹130-₹165 billion and the largest agricultural warehousing capacity of 4.5 to 5.2 million metric tonnes (MMT) as of June 30, 2024.

JM Financial Limited, Ambit Private Limited, and Equirus Capital Private Limited will act as the Book Running Lead Managers for the IPO.

This IPO underscores the company’s robust position in the agricultural value chain and its commitment to leveraging technology for enhanced services.

https://www.bseindia.com/corporates/download/321912/IPO%20Prior/241204_Abhay_Consolidated_20241204162939.pdf