Shreeji Shipping Global Launches IPO on August 19 with 1.6 Crore Shares

Gujarat-based Shreeji Shipping Global is set to launch its initial public offering (IPO) on August 19, 2023, marking a significant step for the company in the shipping and logistics sector. The IPO will remain open for subscription until August 21, 2023, and comprises entirely new shares, totaling 1.6 crore. This means the company will directly benefit from the proceeds of the offering.

The company is known for providing cargo handling, transportation, fleet chartering, and equipment rental services. It operates a fleet of over 80 vessels, including barges, mini bulk carriers, tug boats, and floating cranes, primarily focusing on non-major ports along the West Coast of India and in Sri Lanka. The anchor book for the IPO will launch on August 18, 2023, with share allotment scheduled for August 22, 2023. Trading in Shreeji Shipping Global shares is expected to commence on the bourses on August 26, 2023.

Use of Funds and Financial Performance

Shreeji Shipping Global plans to allocate approximately Rs 251.2 crore of the IPO proceeds towards acquiring dry bulk carriers in the Supramax category from the secondary market. Additionally, the company intends to use Rs 23 crore to repay existing debt. The remaining funds will be earmarked for general corporate purposes.

Despite a challenging year, Shreeji Shipping Global reported a profit of Rs 141.2 crore for the fiscal year ending March 2025, an increase of 13.4 percent compared to the previous fiscal year. However, revenue saw a decline of nearly 17 percent, totaling Rs 607.6 crore during the same period.

The company filed its draft papers with the Securities and Exchange Board of India (SEBI) in January 2023 and received regulatory approval to proceed with the IPO in May. Beeline Capital Advisors and Elara Capital (India) are acting as the merchant bankers for this significant offering.

Market Position and Future Prospects

Shreeji Shipping Global operates as the flagship entity of the Jamnagar-based Shreeji Group, which has carved a niche for itself in the logistics sector. Notably, the company does not have any direct peers listed on the stock exchange, which may provide it with an advantageous position in the market.

As the IPO approaches, Shreeji Shipping Global aims to enhance its operational capacity and strengthen its financial position through the raised capital. Investors are keenly observing how the market will respond to this IPO, especially given the company’s unique offerings and growth potential in the shipping industry.