Star Agriwarehousing Aimed at an IPO Ascendancy

Star Agriwarehousing and Collateral Management Ltd plans to raise funds through an IPO, with a fresh issue of equity shares worth Rs 450 crore and an Offer-For-Sale (OFS). Proceeds will support working capital needs and subsidiary investment. The company leads in agricultural services in India.

Star Agriwarehousing and Collateral Management Ltd, a leading tech-driven agricultural services firm, has initiated steps to launch an initial public offering (IPO) aimed at raising significant capital. The IPO proposal, filed with the Securities and Exchange Board of India (SEBI), features a fresh issue of equity shares totaling Rs 450 crore, complemented by an Offer-For-Sale (OFS) from stakeholders, including promoters and Claymore Investments.

Claymore Investments, which currently holds an 11.83% stake, is set to offload 1.19 crore shares, while promoters will release 1.5 crore shares. The company may also explore a pre-IPO placement to raise Rs 90 crore, which could subsequently adjust the fresh issue size. The Maharashtra-based organization intends to channel Rs 120 crore toward meeting its working capital needs and Rs 125 crore for its subsidiary, FFIPL.

Additionally, Rs 100 crore will be infused into subsidiary AFL, with remaining funds allocated for general corporate purposes. Recognized as a leader in integrated agricultural services, Star Agriwarehousing holds a prominent market position in terms of revenue and technological advancement, as confirmed by an F&S Report.

(With inputs from agencies.)