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The initial public offering (IPO) of Shreeji Shipping Global Ltd, a provider of dry bulk cargo solutions, received a healthy subscription of 2.13 times on its first day of bidding on Tuesday. The INR 411-crore share sale saw robust interest from non-institutional and retail investors, with the Qualified Institutional Buyers (QIB) portion also fully subscribed. The IPO, which has a price band of INR 240-252 per share, is a fresh issue with no offer-for-sale component. The company plans to use the largest part of the IPO funds to purchase "supramax" dry bulk carriers. This strategic investment is intended to expand its fleet and take advantage of the growing maritime logistics sector in India. The public can subscribe to the IPO until August 21.
The initial public offering (IPO) of Shreeji Shipping Global Ltd, a company specializing in shipping and logistics for dry bulk cargo, got a robust start on Tuesday, receiving a subscription of 2.13 times on its first day. The INR 411-crore public issue, which closes on August 21, saw bids for over 2.42 crore shares against the 1.14 crore shares on offer. The strong interest was led by the Non-Institutional Investors (NIIs), whose portion was subscribed 3.53 times, followed by the Retail Individual Investors (RIIs) at 2.12 times. The Qualified Institutional Buyers (QIBs) also showed confidence, with their portion getting a 1.09 times subscription on the inaugural day. Advertisement
The IPO, which is a fresh issue of 1.63 crore equity shares with a price band of INR 240-252 per share, is a key part of Shreeji Shipping's long-term growth strategy. The company intends to allocate INR 251.2 crore of the proceeds to acquire "supramax" dry bulk carriers in the secondary market. These vessels, which typically have a deadweight tonnage of 50,000-60,000 metric tons, are highly versatile and can access a wide range of ports, including those that cannot accommodate larger ships. This acquisition will significantly expand the company's fleet and operational capabilities, reducing its reliance on third-party vessels.
The flagship company of the Jamnagar-based Shreeji Group has established a niche by focusing on non-major ports and jetties, particularly along the west coast of India. The company's business model is strategically positioned to benefit from the increasing cargo traffic at these smaller ports, which are a growing focus area for the Indian government's maritime development projects. The dry bulk shipping sector, which is currently experiencing a period of moderate growth, is expected to benefit from India's robust industrial and infrastructure development.
The IPO has attracted attention from various brokerage firms, with most recommending a "subscribe" rating for long-term investors. Analysts point to the company's established relationships with major industrial clients in the energy and steel sectors, a strong asset base, and an expanding operational footprint. While the company's revenue has seen some fluctuations, its ability to maintain healthy profit margins has been a key positive factor. The IPO's strong start, combined with its clear use of funds for business expansion, signals a positive investor sentiment towards the company's growth trajectory in India's dynamic logistics and shipping market.
Source -PTI
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