Upcoming IPO: Temasek-backed Star Agri files draft papers with SEBI to raise funds via public issue

Star Agri IPO: Star Agriswarehousing and Collateral Management, also called Star Agri, which is backed by multinational investment firm Temasek, has filed draft red herring prospectus (DRHP) or initial IPO papers with market regulator Securities and Exchange Board of India (SEBI) to raise funds via a public offer.

The IPO will consist of a fresh issue of shares valued at ₹450 crore and an offer-for-sale (OFS) component of 2.69 crore shares by promoters and selling shareholders.

The company intends to use IPO proceeds of ₹245 crore for working capital needs and ₹100 crore to boost the capital of subsidiary Agriwise Finserve. A portion will also be used for general corporate purposes.

Launched in 2006, Star Agri offers procurement and warehousing facilities for farm commodities, collateral management, and financing solutions. It also provides tech-enabled value-added data services and a digital marketplace.

In a pre-IPO round, the company may raise ₹90 crore from institutional investors. If such placement takes place, the fresh issue component may be reduced, the report said.

Star Agri IPO: Financials

Star Agri had reported a 66.6% year-on-year (YoY) increase in its consolidated net profit to ₹44 crore in the financial year 2023-24 (FY24). During the same period, revenue rose 41.8% YoY to ₹989.3 crore.

In the first quarter of FY25, profit and revenue stood at ₹22.2 crore and ₹338.2 crore, respectively.

These firms, which had filed their draft IPO papers with SEBI between August and September, will collectively raise ₹12,000 crore through their public offerings.

International Gemmological Institute (India) Ltd's ₹4,000 crore IPO is a mix of fresh issue of shares worth ₹1,250 crores and an OFS of ₹2,750 crore.