Star Agriwarehousing & Collateral Mgmt IPO Details
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Schedule of Star Agriwarehousing & Collateral Mgmt IPO
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About IPO
Star Agriwarehousing & Collateral Mgmt. Ltd will soon launch its IPO, which will comprise a fresh issue and an offer for sale. While the fresh issue size is pegged at ₹450 crore, the offer for sale consists of up to 26,919,270 equity shares with a face value of ₹2 each.
Objectives of Star Agriwarehousing & Collateral Mgmt. Ltd
The Net Proceeds of the Fresh Issue are proposed to be utilised in the following manner:
- Part-funding the working capital requirements of the Company.
- Part-funding the working capital requirements of Material Subsidiary, Farmers Fortune (India) Private Limited (“FFIPL”).
- Infusion of funds in Material Subsidiary, Agriwise Finserv Limited (“ AFL”), towards augmenting capital.
- General corporate purposes.
Star Agriwarehousing & Collateral Mgmt. Ltd Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA |
Fresh Issue | ₹450 crore |
Offer for Sale | Up to 26,919,270 equity shares |
EPS (in ₹) for FY 24 | 6.08 |
Star Agriwarehousing & Collateral Mgmt. Ltd IPO Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not more than 50% of the Net Offer size |
Non-institutional Investors (NIIs) | Not less than 15% of the Offer |
Retail-individual Investors (RIIs) | Not less than 35% of the Net Offer |
Industry Outlook
India’s agricultural sector continues to evolve, driven by technological advancements, government support, and strategic crop management. Despite global challenges, FY 2023-24 witnessed resilient growth across key crops. The agriculture and allied sector expanded at an average annual growth rate of 4.18% from FY 2018-19 to FY 2023-24, reaching ₹47,252.23 billion. With a projected CAGR of 6.92%, the sector is expected to reach ₹66,020.52 billion by FY 2028-29, underscoring its strong growth trajectory.
Company Information
Star Agriwarehousing & Collateral Mgmt. Ltd is a technology-led integrated agricultural value-chain services platform, offering procurement, trade facilitation, warehousing, collateral management, financing solutions, a digital marketplace, and technology-driven value-added data services. According to the F&S Report, it was the largest and most profitable technology-led integrated value-chain services platform by revenue from FY 2022 to FY 2024. As of June 30, 2024, the company is estimated to be the largest player in agricultural commodity-based financing (Collateral Management) in India, with an AUM ranging between ₹130 to ₹165 billion and the largest agricultural warehousing capacity of 4.5 to 5.2 MMT.
Star Agriwarehousing & Collateral Mgmt Strengths
Trusted custodian for stakeholders across the agricultural sector.
According to the F&S Report, the company operates a unique business model, playing a key role in formalising India's agricultural sector by leveraging technology, trust, and networks across the agricultural value chain. With the capability to provide end-to-end services, the company offers warehouse and collateral management, testing, procurement, and financing of agricultural commodities, driving efficiency and transparency in the sector.
The presence in multiple points in the agricultural value chain creates a networking effect.
The company operates a pan-India network of warehouses across 19 states as of June 30, 2024, providing storage solutions for agricultural commodities. Additionally, it has procurement and delivery centres in 16 states, enabling the sourcing of commodities at optimal quality and price. The company supports banks, NBFCs, and financial institutions by issuing warehouse receipts, which serve as collateral for financing agricultural commodities stored in professional warehouses. It also offers collateral management services for commodities stored in borrowers’ field warehouses. Through its financial solutions business, the company extends loans using its own capital and a co-lending model, helping lenders reach underserved regions and communities. As of June 30, 2024, its NBFC operations span 20 branches across five states.
Integrated technology-led agricultural services provider.
The mobile and internet revolution has played a transformative role, providing personalised technology access to farmers, even in remote areas across India, fostering greater efficiency and resilience in agriculture. The company has 6 different platforms specially made for farmers. They are Agrigates, Agripay, E-Mandi Platform, Agribazaar Tradefloor, Agribazaar Marketplace, and Agribhumi.By integrating these innovative solutions,they are redefining the agricultural landscape, providing transparency, efficiency, and security to all stake holders involved.
Risks of Star Agriwarehousing & Collateral Mgmt. Ltd IPO
- Revenue-Share and Lease Agreement Risks
As of June 30, 2024, 723 warehouses (62.06%) of their professional warehouses operate on a revenue-share basis, while 420 warehouses (36.05%) are leased. There is no assurance that revenue-share or lease agreements will be renewed upon termination or that the company will be able to secure alternative warehouses on similar commercial terms, which could impact its operations and financial stability.
- Collateral Management Business Risks
The company’s Collateral Management business faces various threats and challenges that could negatively impact its reputation, business operations, financial condition, and overall performance.
- Legal Risks and Ongoing Proceedings
Star Agriwarehousing & Collateral Mgmt. Ltd, along with its Directors, Promoters, and Subsidiaries, is involved in outstanding legal proceedings. Failure to successfully defend these cases could negatively impact its business prospects, financial condition, operations, and reputation.
All Financial Information about Star Agriwarehousing & Collateral Mgmt
Anchor Investor Bidding Date TBA
IPO Registrar and Book Running Lead Manager
Link Intime India Private Limited is the registrar of the Star Agriwarehousing & Collateral Mgmt. Ltd IPO. The book-running lead managers are:
- Ambit Private Limited
- Equirus Capital Private Limited
- JM Financial Limited
Business Model
Star Agriwarehousing & Collateral Mgmt. Ltd is a technology-led, integrated agricultural value-chain services platform, offering procurement, trade facilitation, warehousing, collateral management, financing solutions, a digital marketplace, and technology-based value-added data services.
Company Growth Trajectory
Although they started primarily as an agricultural warehousing and collateral management company, overtime, they have built a ‘phygital’ platform across the agricultural value chain and an integrated marketplace, connecting stakeholders through deep linkages, resonating with their “sourcing to settlement” philosophy. The aggregate installed capacity of their professional warehouses has increased from 2.30 MMT in FY 2022 to 10MMT in FY 2024, which is an increase of 78.26%. Their revenue from operations increased from ₹496.734 crores in FY 2022 to ₹658.392 crores in FY 24. Their profit after tax increased from ₹85.160 crores in FY22 to ₹144.173 crores in FY24.
Company Market Position:
Among the players in the integrated agricultural services, they are 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, they are 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, as of June30, 2024.
Star Agriwarehousing & Collateral Mgmt. Ltd Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crore) | 1006.71 | 709.71 | 392.03 |
Profit Before Tax ( in ₹ crore) | 62.50 | 41.98 | 19.13 |
Profit After Tax (in ₹ crore) | 46.66 | 28.75 | 12.14 |
EBITDA (in ₹ crore) | 86.39 | 66.21 | 54.31 |
EPS (in ₹) | 30.38 | 18.24 | 10.56 |
Star Agriwarehousing & Collateral Mgmt. Ltd Cash Flow
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit before tax | 62.501 | 41.984 | 19.130 |
Net Cash Used in Operating Activities (in ₹ crore) | 12.15 | 123.09 | 112.13 |
Net Cash Used in Investing Activities (in ₹ crore) | 21.35 | (16.90) | (29.33) |
Net Cash Generated from Financing Activities (in ₹ crore) | (12.47) | (90.26) | (94.49) |
Cash and Cash Equivalent at the End of the Year (in ₹ crore) | 46.30 | 21.55 | 5.63 |
How to Check the Allotment Status of Star Agriwarehousing & Collateral Mgmt. Ltd?
You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of Link Intime Private Ltd. To check the status on the BSE website:
- Visit the BSE website
- Click on “Investor Services” and choose “Application Status Check”
- Choose the issue type — Equity or Debt
- Select the Issue Name from the drop-down. The issue name is the company’s name, which is Star Agriwarehousing & Collateral Mgmt. Ltd
- Enter your application number or PAN number
- Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status
To check status on the website of Link Intime Private Ltd:
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Visit the website of Link Intime Private Ltd
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Choose ‘Public Issues’ from Investor Services dropdown
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Choose the name of the company from the ‘Select Company’ dropdown
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Enter any of these - PAN Number, Application Number, DP/Client ID, Account Number / IFSC
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Click on Submit to check the status
How to Apply for Star Agriwarehousing & Collateral Mgmt. Ltd?
Here are the steps to apply for Star Agriwarehousing & Collateral Mgmt. Ltd IPO:
- Step 1: Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Star Agriwarehousing & Collateral Mgmt IPO FAQs
What is the Star Agriwarehousing & Collateral Mgmt. Ltd?
The Star Agriwarehousing & Collateral Mgmt. Ltd IPO is a 100% book-built issue comprising a fresh offer and an offer-for-sale. The fresh issue size is pegged at ₹450 crores.
Is Star Agriwarehousing & Collateral Mgmt. Ltd IPO coming?
Yes, Star Agriwarehousing & Collateral Mgmt. Ltd is expected to come up with its IPO soon.
Who is the CEO of Star Agriwarehousing & Collateral Mgmt. Ltd?
Amith Agarwal is the CEO of Star Agriwarehousing & Collateral Mgmt. Ltd.
From where can I read more about the IPO of Star Agriwarehousing & Collateral Mgmt. Ltd?
You may read more about Star Agriwarehousing & Collateral Mgmt. Ltd and its IPO from the company’s draft red herring prospectus (DRHP) here.
