Sadhav Shipping lists at 42% premium to IPO price on NSE SME platform

Sadhav Shipping IPO: Ahead of the listing, the shares were commanding a 30 percent premium in the grey market

The stock of Sadhav Shipping made a decent debut, listing at a 42.1 percent premium over the IPO price, on March 1. The stock opened at Rs 135 against an issue price of Rs 95 on the NSE SME platform.

Ahead of the listing, the shares were commanding a 30 percent premium in the grey market, which is an unofficial ecosystem where shares start trading before the allotment in the IPO and until the listing day. Most investors track the grey market premium (GMP) to get an idea of the listing price.

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The strong listing was on the back of impressive subscription figures. The offer was subscribed 135 times with the retail portion getting booked 65 times between February 23 and February 27. The company raised Rs 38.18 crore through a fresh issue of 40.18 lakh shares.

The company's promoters are Kamal Kant Biswanath Choudhury, Sadhana Choudhury, Vedant Kamal Kant Choudhury and Subhas Chandra Choudhury. Isk Advisors was the book-running lead manager,  Maashitla Securities was the registrar, and Sunflower Broking was the market-makers for the issue.

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The company plans to use the net fresh issue proceeds to repay certain outstanding borrowings, part-funding of capital expenditure to purchase or acquire additional boats and vessels and fund additional working capital requirements. The remaining amount will be used for general corporate purposes.

Sadhav Shipping Limited owns and operates marine assets to service ports, and coastal logistics, and provides other port maritime-related services The company has 24 ships, of which 19 are owned and 5 are leased, which are deployed in various sectors of maritime trade in India.