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, according to the DRHP.
The Maharashtra-based tech-driven agricultural services firm, Star Agriwarehousing and Collateral Management Ltd has filed preliminary papers with capital markets regulator Securities and Exchange Board of India (Sebi) to raise funds through an initial public offering (IPO). The proposed IPO comprises a fresh issue of equity shares aggregating up to Rs 450 crore and an Offer-For-Sale (OFS) component of 2.69 crore equity shares by promoters and an investor, according to the draft red herring prospectus (DRHP) filed.
As part of the OFS, Claymore Investments (Mauritius) Pte, an indirect subsidiary of Temasek Holdings, is offering 1.19 crore equity shares through the OFS and the remaining 1.5 crore shares will be offloaded by promoters.
At present, Claymore holds 11.83 per cent stake in Star Agriwarehousing and Collateral Management and promoters own 88.17 per cent stake in the company. The company may consider raising Rs 90 crore through a pre-IPO placement. If this placement happens, the fresh issue size will be reduced.
The 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 Agri warehousing 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.
