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ABS Marine IPO
ABS Marine Services Ltd
₹1,40,000 /1000 sharesMinimum Investment
ABS Marine IPO Details
| Bidding Dates | Min. Investment | Lot Size | Price Range |
|---|---|---|---|
| 10 May ‘24 - 15 May ‘24 | ₹1,40,000 | 1,000 | ₹140 - ₹147 |
| Issue Size | IPO Doc |
|---|---|
| 96.29Cr | RHP PDF |
About ABS Marine
Founded in
1992
Managing director
Capt. P. B. Narayanan
Parent organisation
ABS Marine Services Ltd
Strengths & Financials of ABS Marine
Strengths
Risks
The company started its operations in 1992. Therefore, there is a long history of the company’s operations, which can help investors assess its past performance and future prospects.
The company serves a diverse customer base that primarily includes the Government of India, large industrial concerns, public sector undertakings, port authorities, and private sector entities. They have also secured 10 strategic contracts with various government agencies. Among these contracts, a major one with the Ministry of Earth and Science (MOES) accounts for approximately 23.50% of the company's revenue from operations.
The company’s fully-owned, fully managed and crewed fleet includes state-of-the-art DP-2 multipurpose offshore supply vessels, anchor handling towing supply vessel, multi-disciplinary ocean research vessels, coastal research vessels, fishery oceanographic research vessel, bulk carriers, gas tankers, oil tankers, passenger vessels, high speed crafts and harbour crafts. This fleet diversification helps it enter into chartering and ship management arrangements of varying durations with different types of customers.
The company’s total income has risen consistently over the last three years from Rs 71.63 crore in FY22 to Rs 111.58 crore in FY23 to Rs 135.16 crore in FY24. Profit after tax (PAT) too has risen consistently from Rs 8.09 crore in FY22 to Rs 9.53 crore in FY23 to Rs 23.55 crore in FY24.
The company experienced negative cash flow from operating activities of Rs. 16.90 cr in FY 2023.
As of March 31, 2024, the company had total outstanding borrowings of Rs. 45.68 cr. The company's borrowing agreements include restrictive covenants, requiring lender approval for certain actions such as mergers, changes in capital structure, or alterations to the company's management or constitutional documents.
A majority of the company’s revenues come from a handful of clients, largely hailing from the government and PSU sectors. Any disruption in business from these clients can hurt the prospects of the company.
The life of the company’s current vessels range from 2 to 18 years, with an average age of around 7 years. Increase in the age of the vessel necessitates expenditures for maintaining it in good operating condition. But it’s difficult to predict such expenditures with precision. Also, as the vessels age, cargo insurance rates increase and cost efficiency decreases, both of which decrease the company’s profitability.
The company is subject to extensive laws, treaties and agreements governing the management, transportation, etc. Any failure to adhere to these laws could result in substantial liability, which could hurt the company’s business.
The company has significant working capital requirements and may need additional financing in the future to meet these needs. If the company fails to secure such additional financing, or if it's unable to obtain it on favourable terms, it could negatively impact their operations and financial condition.
ABS Marine Financials
*All values are in Rs. Cr
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Application Details of ABS Marine IPO
| Apply as | Price band | Apply Range |
|---|---|---|
| Regular | ₹140 - 147 | ₹2 - 5 Lakh |
| High Networth Individual | ₹140 - 147 | ₹2 - 5 Lakh |
For ABS Marine IPO, eligible investors can apply as Regular.