Amrut Dredging & Shipping IPO

About Amrut Dredging and Shipping IPO

Amrut Dredging and Shipping Limited IPO is an IPO of up to 49,10,000 equity shares. It consists of a fresh issue of up to 49,10,000 equity shares. The lot size is TBA. The price range is TBA. The shares will be allotted on TBA. The credit of shares to the demat account will take place on TBA and the initiation of refunds will take place on TBA.The listing of shares on the stock Exchanges will take place on TBA.

Objective of Amrut Dredging and Shipping IPO

• Funding of capital expenditure towards the purchase of dredgers, barges, and tugs.
• To fund the working capital requirements of the company.
• To fund expenditure towards general corporate purposes.

Industry Outlook

The dredging industry in India continues to grow owing to the increasing requirements of the maritime sector. At present, over 12 crore cubic metres (cum) of annual dredging is being carried out at major ports and dockyards in the country. The Dredging Guidelines 2021 envisage dredging activity ramping up to 300 crores cubic metres over the next 10 years.

Recently, the Ministry of Ports, Shipping and Waterways announced plans to undertake a dredging project worth ₹300 crore to increase Cochin Port’s draft depth to 18 metres, enabling the port to dock larger ships. The Indian dredging industry is supported by various initiatives such as the Sagarmala programme, Maritime India Vision 2030, SAROD Ports, Dredging Guidelines for Major Ports 2021, etc.

The global ship leasing market is an integral component of the modern global trade landscape, offering flexibility and accessibility to businesses that require maritime transportation. It is a dynamic and responsive sector that reflects the ever-changing nature of international trade, economics, and environmental concerns. As global trade continues to evolve, the ship leasing industry will remain a critical player in facilitating the movement of goods across the world's oceans. The global ship leasing market is estimated to reach $5,727.54 crore by 2030, growing at a CAGR of 3.8% from 2023 to

Company Information

Amrut Dredging and Shipping Limited operates as a contractor, providing marine and dredging services primarily to India’s major and non-major ports and shipyards. Their core business encompasses charter hire and the execution of dredging and marine contracts. They are recognised for their capabilities in transporting and supplying potable water and fuel through their fleet of tugs and barges. They provide comprehensive marine infrastructure services, including coastal protection, beach nourishment, land reclamation, inland dredging, and allied services. They collaborate with port operators, owners, and consulting engineers to deliver tailored solutions, often integrating these works with other dredging activities to enhance service delivery. Their chartering services include short- and long-term hire of a wide range of vessels such as dredgers, hopper barges, jack-ups, and specialised marine equipment, solidifying their market presence since 2014.

Risks of Amrut Dredging and Shipping IPO

• They may experience decreased revenues due to fluctuations in charter rates, which may have a material adverse effect on their financial condition and results of operations. :Their operating results are highly dependent on the prevailing charter rates at a given point in time. Since they derived ₹28.54 crore, or 73.21% of their total revenue for the financial year ended 31 March 2024, from charter hire charges, fluctuations in charter rates, or continued stagnation in charter rates, will have a material adverse effect on their financial condition and results of operations.

• Failure by customers to make payment could affect their cash flows and working capital, which may have an adverse effect on their results of operations. : If there is any delay by customers in settling bills due to circumstances beyond their control, it could result in the withholding of payments, blocking their working capital and affecting their cash flow, thereby adversely impacting their results of operations.

• Changes in technology may render their current vessel technology obsolete or may require them to make substantial capital investment. :The technological standards of their vessels, equipment, and machinery may change based on the requirements of the industry. The cost to upgrade their vessels or equipment, or to implement such advanced technological processes, could be significant and could adversely affect their results of operations and financial position.

IPO Registrar and Book Running Lead Managers

Book running lead managers:

Mark Corporate Advisors Private Limited

Catalyst Capital Partners Private Limited

Registrar for the IPO : KFin Technologies Limited

Business Model

The company earns their revenue as they operate as a contractor, providing marine and dredging services primarily to India’s major and non-major ports and shipyards.

Company Growth Trajectory

As of 31 August 2024, their order book amounted to ₹32.01 crore. Their revenue from operations was ₹18.10 crore, ₹38.77 crore, ₹23.44 crore, and ₹20.38 crore for the period that ended on 30 June 2024 and the fiscal years that ended 31 March 2024, 31 March 2023, and 31 March 2022, respectively. They also registered a PAT of ₹10.51 crore, ₹4.996 crore, ₹0.36 crore, and ₹1.97 crore for the period that ended on 30 June 2024 and the fiscal years that ended on 31 March 2024, 31 March 2023, and 31 March 2022, respectively.

Company Market Position

Amrut Dredging and Shipping Limited has successfully provided services to major ports across India. Their company is equipped to deliver a comprehensive range of dredging, chartering, marine infrastructure, and allied services to their clients. They maintain both traditional and modern vessels to enhance operational efficiency for their clients. Their key clients include top entities in industries such as construction, oil and gas, shipping, and port management. Their company has experienced significant growth over the past decade, establishing itself as a marine and dredging contractor in India, fostering trust for future collaborations.

How To Check Allotment Status of Amrut Dredging and Shipping IPO?

You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar KFin Technologies Limited. To check the status on the BSE website:

• Visit the BSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt (Equity in this case)
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Amrut Dredging and Shipping Limited
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

Follow these steps to know the allotment status on the registrar’s website:

• Visit the KFin Technologies Limited website
• Choose “Public Issues” from the “Investor Services” drop-down
• Select Amrut Dredging and Shipping Limited from the drop-down
• Enter your PAN number or Application number
• Click on “Submit” to know the allotment status

How To Apply for Amrut Dredging and Shipping IPO?

• Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.