Jamnagar-based Shreeji Shipping Global Limited, a prominent shipping and logistics solutions provider, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on January 25, 2025. The company plans to raise funds entirely through a fresh equity issue to meet its strategic and operational needs.
Shreeji Shipping caters to 17 domestic ports in India and three international ports in Sri Lanka and West Africa, establishing itself as a reliable player in the maritime logistics sector.
Key Details of the Shreeji Shipping IPO
1. Issue Structure
- IPO Type: Book-built public issue
- Fresh Equity Issue: Up to 2 crore equity shares
- Face Value: ₹10 per share
- Offer-for-Sale (OFS): None, meaning all proceeds will go directly to the company.
2. Utilization of Funds
Shreeji Shipping has clearly outlined its fund utilization plan in the DRHP:
- ₹289.43 crore: To acquire dry bulk carriers in the “Supramax category” from the secondary market.
- ₹19.5 crore: To repay or prepay outstanding borrowings, either in part or full.
- Remaining Proceeds: For general corporate purposes, strengthening the company’s financial stability.
This focused allocation highlights the company’s commitment to improving operational efficiency and reducing debt, which is expected to enhance profitability in the long term.
Who Are the Key Players Involved in the IPO?
- Promoters:
- Ashokkumar Haridas Lal
- Jitendra Haridas Lal
- Lead Managers (BRLMs):
- Beeline Capital Advisors Pvt Ltd
- Elara Capital India Pvt Ltd
- Registrar:
- Bigshare Services Pvt Ltd
These industry-renowned entities will oversee the IPO process, ensuring compliance and seamless execution.
Financial Performance of Shreeji Shipping
Shreeji Shipping’s DRHP includes impressive financial highlights, demonstrating its growth trajectory over recent years:
Quarterly Performance (as of September 30, 2024):
- Net Profit: ₹80.53 crore
- Total Income: ₹300.97 crore
- Net Worth: ₹297.17 crore
Annual Financials:
- FY 2023-24:
- Net Profit: ₹124.51 crore (4.7% growth from the previous year)
- FY 2022-23:
- Net Profit: ₹118.88 crore
- FY 2021-22:
- Net Profit: ₹83.46 crore
The company’s consistent profitability reflects its operational efficiency and its ability to navigate industry challenges.
What Makes Shreeji Shipping’s IPO Attractive?
- Focused Fund Utilization:
With a large portion of proceeds allocated for acquiring dry bulk carriers, the company is poised to strengthen its fleet and expand capacity. - Debt Reduction:
By using ₹19.5 crore to repay borrowings, Shreeji Shipping aims to improve its balance sheet and reduce financial liabilities. - Established Market Presence:
Operating across 17 domestic ports and three international ports, the company has a robust market presence, making it an attractive investment opportunity. - Steady Financial Growth:
Consistent growth in net profit, even during challenging economic conditions, reflects the company’s resilience and potential for sustained profitability.
FAQs
What is the purpose of Shreeji Shipping’s IPO?
The IPO aims to raise funds through a fresh issue of shares to acquire dry bulk carriers, repay borrowings, and meet general corporate expenses.
How many shares will be issued in the IPO?
The IPO will consist of a fresh issue of up to 2 crore equity shares with a face value of ₹10 per share.
Will there be an Offer-for-Sale (OFS) component in the IPO?
No, there is no OFS component in this IPO. All proceeds will directly benefit the company.
How will the funds be utilized?
- ₹289.43 crore: To acquire Supramax dry bulk carriers.
- ₹19.5 crore: To repay or prepay outstanding borrowings.
- Remaining funds will be used for general corporate purposes.
What are the company’s key financial highlights?
- Net profit for FY 2023-24: ₹124.51 crore (4.7% growth from FY 2022-23).
- Quarterly net profit (as of September 30, 2024): ₹80.53 crore.
- Total income (September 2024): ₹300.97 crore.
Who are the promoters of Shreeji Shipping?
The company’s promoters are Ashokkumar Haridas Lal and Jitendra Haridas Lal.
Which ports does Shreeji Shipping operate in?
The company caters to 17 domestic ports in India and three international ports:
- Puttalam, Sri Lanka
- Konta, West Africa
- Boffa, West Africa
Who are the IPO’s lead managers?
The IPO will be managed by Beeline Capital Advisors Pvt Ltd and Elara Capital India Pvt Ltd, with Bigshare Services Pvt Ltd as the registrar.
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