Shreeji Shipping Global files IPO papers to raise funds for dry bulk carriers acquisition

Shreeji Shipping Global IPO

Shreeji Shipping Global, which provides shipping and logistic solution for dry bulk cargo, has filed draft papers with SEBI to raise funds via initial public offering for acquisition of dry bulk carriers.

The IPO comprises of entirely fresh issue of 2 crore equity shares by the Gujarat-based company. Hence, the entire issue proceeds will go to the company.

With the fleet of more than 75 vessels (consisting of barges, mini bulk carriers, tug boats and floating cranes) and more than 380 earthmoving equipments, the Ashokkumar Haridas Lal and Jitendra Haridas Lal-promoted company provides shipping and logistic solution for dry bulk cargo at various ports and jetties at India and Sri Lanka.

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The flagship company of Jamnagar-based Shreeji Group primarily focuses on non-major ports and jetties, particularly along the west coast of India. Until September 2024, it has provided services at more than 20 ports and jetties including major Indian ports at Kandla, non-major ports at Navlakhi, Magdalla, Bhavnagar, Bedi and Dharmatar and overseas port at Puttalam Port (Sri Lanka).

Shreeji Shipping Global is planning to spend Rs 289.4 crore out of IPO proceeds for acquisition of dry bulk carriers in supramax category in the secondary market, and further use Rs 19.5 crore for repaying debt. "As of December 15 last year, its total secured outstanding borrowings amounted to Rs 180.86 crore," the company said in its DRHP filed on January 24.

The company does not have comparable peer among the listed entities in India or globally.

On the financials front, the shipping and logistic solution provider has recorded net profit at Rs 124.5 crore for the fiscal 2024, rising 4.7 percent over the same period last fiscal, but revenue in the same period declined by 11.6 percent to Rs 731 crore, down from Rs 827 crore. Profit in the first half of FY25 stood at Rs 80.5 crore on revenue of Rs 299.4 crore.

Beeline Capital Advisors, and Elara Capital (India) are appointed as the book running lead managers to the issue.