Shreeji Shipping Global files DRHP for IPO with SEBI
Shreeji Shipping Global Ltd. has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO). The IPO will consist entirely of a fresh issue of 2 crore equity shares, with a face value of ₹10 each. There will be no offer-for-sale by promoters or investors. The equity shares are proposed to be listed on the National Stock Exchange (NSE) and Bombay Stock Exchange Ltd.
IPO Proceeds Utilization
The company plans to use ₹289.4 crore from the IPO proceeds to acquire dry bulk carriers in the supramax category in the secondary market. An additional ₹19.5 crore will be used for repaying debt. The remaining funds will be used for general corporate purposes. As of September 2024, the company had total borrowings of ₹264.54 crore.
Company Operations
Shreeji Shipping Global Ltd. provides shipping and logistic solutions for dry bulk cargo. The company primarily focuses on non-major ports and jetties, especially along the west coast of India. As of September 2024, the company has a fleet of 75 vessels and over 380 earthmoving equipment. Shreeji Shipping has provided services at more than 20 ports and jetties, including major Indian ports like Kandla and non-major ports like Navlakhi, Magdalla, Bhavnagar, Bedi and Dharmatar, as well as the overseas port at Puttalam in Sri Lanka. The company also serves Konta and Boffa in West Africa.
Financial Performance
As of September 30, 2024, the company reported a revenue of ₹299.35 crore, an EBITDA of ₹99.36 crore, and a profit of ₹80.54 crore from continuing operations. The company reported a profit after tax (PAT) of ₹124.51 crore for FY 2023-24, reflecting a 4.73% increase from ₹118.89 crore in the previous fiscal year. However, total income for FY 2023-24 declined by 11.02% to ₹736.17 crore from ₹827.33 crore in FY 2022-23. The company's net worth till September 30, 2024, was ₹297.17 crore.
Market Growth
According to D&B Report, Cargo handled at Indian ports is expected to grow at an annual rate of 10.80% to 2,849 MMTs by Fiscal 2030, up from 1,540 MMTs in Fiscal 2024. Ports in Gujarat are expected to see even faster growth, with cargo projected to increase to 720 MMTs by Fiscal 2030 from 317.20 MMTs in Fiscal 2024, representing a 17.50% annual growth rate. India has a long coastline with 12 major ports, 217 minor ports, and 78 non-major ports handling cargo.
Pre-IPO Placement
The company may consider an issue of equity shares as a pre-IPO placement. If the pre-IPO placement is completed, the amount raised under the pre-IPO placement will be reduced from the fresh issue.
Book-running Lead Managers
The company has appointed Beeline Capital Advisors Pvt. Ltd. and Elara Capital (India) Pvt. Ltd. as its lead managers, with Bigshare Services Pvt. Ltd. serving as the registrar. The Draft Red Herring Prospectus (DRHP) was filed with SEBI on January 25.
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