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Star Agriwarehousing and Collateral Management Ltd, a tech-driven agricultural services firm, has filed preliminary papers with capital markets regulator 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 on Wednesday. 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 Maharashtra-based company plans to utilise the proceeds of the fresh issue worth Rs 120 crore to partly fund its working capital requirements and Rs 125 crore towards the working capital needs of its subsidiary, FFIPL. Additionally, Rs 100 crore will be infused into its subsidiary, AFL, to augment its capital and the remaining amount will be allocated towards general corporate purposes. Star Agriwarehousing and Collateral Management 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. Among the players in integrated agricultural services, the company is the largest in terms of revenue and the most profitable technology-led integrated value chain services platform during fiscals 2022 to 2024, as per an 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 (asset under management) between Rs 130 billion and Rs 165 billion, serviced by the largest agricultural warehousing capacity of 4.5 to 5.2 MMT, as of June 30, 2024. JM Financial, Ambit and Equirus Capital are book-running lead managers to the issue.

Shares of HEG climbed 6.4% on Thursday to Rs 619.25 on the BSE following the execution of a block deal worth Rs 172 crore on the exchanges and amid optimism for Indian graphite electrode manufacturers following China’s decision to implement a stricter review process for graphite exports to the US. This raised hopes that the restrictions could increase demand for Indian graphite suppliers.About 28.8 lakh shares of HEG, comprising a 6% equity in the company, changed hands on the counter at an average selling price of Rs 600 per share, ET Now reported. Meanwhile, China’s decision to tighten its export restrictions on graphite has created optimism that Indian suppliers, like HEG and Graphite India, could see an increase in demand. HEG shares extended their winning streak to the third session on the overall optimism. China, the world's largest producer of graphite, plays a key role in supplying the material, which is used in military applications and the production of Electric Vehicle (EV) batteries. The recent decision by China to tighten its export controls could limit the availability of graphite to the US, which may in turn boost demand for Indian suppliers.This move follows the US government's heightened scrutiny of Chinese semiconductor technology and other critical materials, including gallium, germanium, and antimony, all of which have military applications.Additionally, demand for graphite is expected to rise as it is a key component in the steel industry, which could benefit from increased government spending in the coming months. With graphite being a crucial component in steel production, the surge in demand is also expected to be fueled by upcoming government spending aimed at the steel industry. As HEG continues to expand its operations, including a recent increase in production capacity to 100,000 tons, it is well-positioned to capitalise on the growing global demand for graphite. Over 70% of HEG's revenue comes from exports, with the US contributing around 17% of its sales.The introduction of a Rs 9,000 crore production-linked incentive (PLI) scheme by the Indian government for electric battery components further strengthens HEG’s outlook, especially as it explores entering the graphite anode market for lithium-ion batteries.China’s announcement of stricter export reviews, especially for shipments to the US, is expected to significantly impact global graphite supply chains. However, HEG and Graphite India may benefit as they continue to expand and enhance their global presence, competing with international giants such as GrafTech International and Japan’s Resonac.Also read | Indraprastha Gas to consider bonus share issuance in December board meeting(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)