Star Agriwarehousing and Collateral Management Limited files DRHP with SEBI

Star Agriwarehousing and Collateral Management Limited has filed its Draft Red Herring Prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI).

The company is a technology led integrated agricultural value-chain services platform, engaged in providing services such as procurement, trade facilitation, warehousing, collateral management, financing solutions, digital marketplace and technology based value added data services.

The company plans to raise fund through an Initial Public Offering. The total issue size of comprises of Fresh Issue aggregating up to ₹ 4,500 million (450 crore) and an Offer-For-Sale aggregating Up to 26,919,270 equity shares.  (“Total Offer Size”)

The company proposes to utilize the Net Proceeds towards funding (i) Part-funding the working capital requirements of the Company estimated to be ₹ 1,200 million [₹120 crore]; (ii) Part-funding the working capital requirements of company’s Material Subsidiary, FFIPL estimated to be ₹1250 million [₹125 crore]; (iii) Infusion of funds in Material Subsidiary, AFL, towards augmenting of capital estimated to be ₹1,000 million [₹100 crore] and the balance amount towards general corporate purposes. (“Objects of the Offer”)

The Offer for Sale comprises of upto 1,318,126 equity shares by Amith Agarwal, upto 4,393,754 equity shares by Amit Goyal, upto 15,005 Equity Shares by Amit Khandelwal, upto 1,500,000 equity shares by Suresh Chandra Goyal, (Combined “Promoter Selling Shareholders); upto 1,500,000 equity shares by Devkinandan Gupta, upto 219,688 equity shares by Sri Krishna Agarwal, upto 878,751 equity shares by Pramod Agarwal, upto 500,000 equity shares by Sumitra Devi Goyal, upto 500,000 equity shares by Ankush Gupta, (Combined “Promoter Group Selling Shareholders”); and upto 11,980,508 equity shares by Claymore Investments (Mauritius) Ltd (“Investor Selling Shareholders”) (Combined “Total Selling Shareholders”)

JM Financial Limited, Ambit Private Limited and Equirus Capital Private Limited are the Book Running Lead Managers.

Among the players in the integrated agricultural services, the company is the largest by revenue and the most profitable technology led integrated value chain services platform during Fiscals 2022 to 2024, as per the F&S Report. As per the F&S Report.

The company is estimated to be the largest player within the agricultural commodity based financing (Collateral Management) in India as of June 30, 2024, with an AUM between ₹130 to ₹165 billion, serviced by the largest agricultural warehousing capacity of 4.5 to 5.2 MMT, both as of June 30, 2024.