Shreeji Shipping Global IPO

About Shreeji Shipping Global Ltd IPO

The IPO comprises fresh issue of up to 20,000,000 equity shares of face value of ₹10 each. There is no offer for sale. It’s a 100% book-built issue.

Objectives of Shreeji Shipping Global Ltd IPO

• Acquisition of dry bulk carriers in Supramax category in the secondary market
  
• Pre-payment/re-payment, in part or full, of certain outstanding borrowings availed by the company
  
• General corporate purposes
  

Industry Outlook

India's logistics industry is a vital component of the country's economic growth, poised to achieve significant milestones due to a surge in e-commerce, government initiatives, and technological advancements. As the Indian economy expands, the logistics sector is expected to see unprecedented growth, driven by a range of factors including enhanced infrastructure and evolving market demands.

Freight movement in India is predominantly reliant on road transportation, accounting for 59% of goods moved in ton-kilometers, followed by rail (35%), waterways (6%), and air (1%) India's logistics market is estimated to have valued at USD 317 Bn in 2024 and is projected to reach USD 517 Bn by 2029.

Company Information

Shreeji Shipping Global Ltd provides shipping and logistic solutions for dry bulk cargo at various Ports and Jetties in India and Sri Lanka. As of September 30, 2024, the company has fleet of more than 75 vessels, consisting of barges, mini bulk carriers (MBCs), tug boats and floating cranes, and more than 380 earthmoving equipment consisting of material handling machines, excavators, pay loaders, tippers including trailers, tankers and other vehicles in services of its clients.

It has a legacy of more than two and half decades in the shipping and logistic industry with prominent experience in cargo handling, transportation, fleet chartering and equipment rentals and other ancillary services.

For the last three fiscal years, on a restated consolidated basis, its revenue from operations, EBITDA and PAT from continuing operations grew at a CAGR of 13.05%, 18.51% and 22.14%, respectively.

Risks of Shreeji Shipping Global Ltd IPO

• Customer concentration: The company derives a significant portion of its revenue from operations from its top ten customers, with its single largest customer contributing more than 17.39% of its revenue from operations in the six months period ended September 30, 2024. Loss of any of these customers or a reduction in purchases by any of them could adversely affect its business, results of operations and financial condition.

• Stiff competition: The company faces significant competition from domestic and international shipping and logistics players which may lead to a reduction in its market share, which in turn may adversely affect its business, results of operations, financial condition and cash flows.

• Geographical concentration in port operations: The company’s cargo handling services are dependent on the ports and jetties on which it provides its services. Majority of these ports and jetties are situated across the west coast of India. Any adverse developments affecting its operations in such ports and jetties, could have an adverse impact on its business, financial condition, results of operations and cash flows.

Peer Comparison

There are no listed peer group companies (i.e., companies of comparable size in the same industry), in India or globally (outside India) that engage in a business similar to that of Shreeji Shipping Global Ltd. Accordingly, it is not possible to provide an industry comparison in relation to the company.

Anchor Investor Bidding Date TBA

IPO Registrar and Book Running Lead Manager

• Registrar: Bigshare Services Pvt Ltd
• Book running lead managers: Beeline Capital Advisors Pvt Ltd and Elara Capital (India) Pvt Ltd

Business Model

The company offers comprehensive shipping and logistic solutions for dry bulk cargo, including cargo handling and transportation services. Under its cargo handling segment, it provides STS (Ship to Ship) Lighterage, Stevedoring and other port services including cargo management services. Its service offerings include cargo handling services, transportation, fleet chartering and equipment rentals and other operational income.

Further, as a part of the logistic supply chain, it also provides transportation services for dry bulk cargo including port to premise drop-off and vice versa. The company’s complete integrated end to end shipping and logistic services provides its customers with a preferable option of single-window solutions thereby negating the need to approach multiple service providers at different levels in the chain of shipping and logistic services.

Company Growth Trajectory

The company’s revenue from operations has grown at a CAGR of 13.05% from ₹571.973 crore in FY 22 to ₹731.003 crore in FY 24. Its EBITDA has grown at a CAGR of 18.51% from ₹140.907 crore in FY 22 to ₹197.891 crore in FY 24.

How to Check Allotment Status of Shreeji Shipping Global Ltd IPO?

Visit the Registrar’s Website

Visit the official website of Bigshare Services Pvt Ltd and click on any one of the three servers. Select the name of the company from the dropdown followed by selection of application number, beneficiary ID or PAN number. Enter captcha and click on search.

Check on the Bombay Stock Exchange Website

The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investors' tab. Under 'Investors', click on 'IPO'. This will take you to the IPO allotment status page.

On the BSE IPO page, follow these steps:

• Select 'Equity' from the dropdown menu
• Choose 'Shreeji Shipping Global Ltd' in the next dropdown
• Enter your application number
• Enter your PAN
• Click 'Search'

Your Shreeji Shipping Global Ltd IPO status will be displayed.

Verify on the National Stock Exchange Website

The National Stock Exchange (NSE) has an IPO Bid Verification module. Use this to check Shreeji Shipping Global Ltd IPO allotment status.

Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'.

On the NSE IPO Bid Verification page, enter:

• Application number
• PAN

Then click 'Submit'. Your Shreeji Shipping Global Ltd IPO bid and allotment details will be displayed.

How to Apply for Shreeji Shipping Global Ltd 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.