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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.
Detail | Information |
---|---|
Upper Price Band (₹) | TBA |
Existing Shares to be Sold | -- |
Fresh Issue | Up to 49,10,000 equity shares |
EPS (₹) | 3.99 |
For the year ended March 31, 2024 |
Investor Category | Shares Offered |
---|---|
QIBs Share Offered | Not more than 50% |
Non-Institutional Investors (NIIs) | Not less than 15% |
Retail Individual Investors | Not less than 35% |
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
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.
Consistent financial performance and strong order book.
They are a profitable, dividend-paying company that has posted continuous profits over the last three fiscal years. They have established a robust customer base, including prominent players in the marine and dredging industry, which reflects their commitment to delivering high-quality services.
Term contracts of an ongoing nature ensuring revenue visibility.
They have various medium- to long-term contracts which are ongoing in nature. They are also party to various contracts with public sector undertakings, which are driven by the tender process. All their owned vessels are contracted to reputed Indian companies. Additionally, their equipment is gainfully deployed at major ports in India.
Flexible portfolio of vessels.
Their fleet comprises 28 owned and leased vessels, characterised by diverse nature, size, and technical capabilities. This versatility enhances their competitiveness by allowing them to select the most suitable equipment for specific dredging and marine infrastructure projects.
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.
Parameter | Amrut Dredging and Shipping Limited | ABS Marine | Knowledge Marine & Engineering Works Limited |
---|---|---|---|
Total Income for the year ended March 31, 2024 (₹ in crores) | 21.141 | 138.019 | 166.709 |
P/E | --- | 25.5 | 67.3 |
EPS (Diluted) (₹) | 8.39 | 13.09 | 30.63 |
Return on Net Worth (%) | 6.68 | 21.69 | 19.75 |
NAV per share (₹) | 87.90 | 65.10 | 163.24 |
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.
Parameter | FY22 | FY23 | FY24 |
---|---|---|---|
Revenue from operations (₹ crores ) | 20.37 | 23.44 | 38.77 |
Profit Before Tax (₹ crores) | 4.71 | 4.43 | 11.17 |
Net profit / (loss) (₹ crores) | 1.96 | 0.36 | 4.99 |
EBITDA (₹ crores) | 8.83 | 8.34 | 17.75 |
EPS (₹) | 2.75 | 0.51 | 3.99 |
Parameter | FY22 | FY23 | FY24 |
---|---|---|---|
Profit before tax (₹crores) | 4.71 | 4.43 | 11.17 |
Net Cash from Operating Activities (₹ crores) | 7.26 | -5.33 | 0.05 |
Net Cash from Investing Activities (₹ crores) | -7.88 | -9.03 | -56.54 |
Net Cash from Financing Activities (₹ crores) | 0.84 | 14.80 | 56.59 |
Cash and Cash Equivalents (₹ crores ) | 0.28 | 0.07 | 0.83 |
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:
Follow these steps to know the allotment status on the registrar’s website:
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
You can read more about Amrut Dredging & Shipping and its IPO from the company’s red herring prospectus (RHP) here.
The Amrut Dredging and Shipping Limited IPO has an issue size of up to 49,10,000 equity shares. The IPO opens for subscription on TBA and closes on TBA.
KFin Technologies Limited is the registrar for this IPO.