Sadhav Shipping Announces IPO, To Open On Feb. 23

Sadhav Shipping Ltd. plans to come out with its Initial Public Offering of 40,18,800 equity shares of Rs 10 each for cash at a premium of Rs 85, aggregating to Rs 38.18-crore.

The IPO opens for public subscription on Friday, Feb. 23, 2024, with the issue price fixed at Rs 95. The retail quota comprises 50% of the net issue. The IPO will close on Tuesday, Feb. 27, 2024.

Market Makers have reserved 2,02,800 equity shares, leaving a net issue of 38,16,000 shares to the public. The Issue and Net Issue constitute 28% and 26.59%, respectively, of the post-issue paid-up equity share capital.

Sadhav Shipping is a key player in varied segments of the Maritime domain in India. It is a ship owner, ship manager and operator in verticals of Offshore Logistics, Port Services and Oil Spill Response.

In Offshore Logistics, Sadhav Shipping supports the exploration and production of oil and gas in offshore fields of ONGC Ltd. with specialised marine assets meant for offshore operations.

Its service bouquet to ports includes, pilot boats, high-speed security boats, survey boats and work boats. With an increase in traffic in all major ports of the country, demand for ancillary services which the company provides has also correspondingly increased.

With respect to the third vertical of Oil Spill Response, Sadhav Shipping provides Tier-1 Oil Spill Response facility for ports; it is presently offering its services on long-term retainer contracts to Kandla, Vadinar, Mumbai, JNPT, Mangalore & Paradip Port.

The company intends to utilise the proceeds of the issue to purchase additional vessels to cater to its business requirements. It will also deploy the resources to modify existing vessels and boats.

The company recently bagged a contract from ONGC to operate one fast crew boat and has contracted with a notable owner for purchase of a suitable boat. This boat will be the first of its kind in India with 60 passenger capacity, 25 knots speed, motion compensated gangway, gyro stabiliser and Dynamic Positioning system. This boat will be used to transport men and materials from ONGC's bases in Mumbai/Navi Mumbai to its offshore locations. Sadhav Shipping along with ONGC aims to improve the cost, time and ride quality of the passengers going to offshore Oil & Gas Platforms of ONGC.

The company constantly participates in the bidding process for port services and offshore logistics services across India and hence it wants to upgrade its vessels and boats to provide quality services and uncompromising safety of operations.

The company's Chairman and Managing Director Capt. Kamal Kant Choudhury said: "India's economy is growing robustly, and Sadhav Shipping is well-positioned to capitalize on the bright growth prospects of the Maritime industry."

The company presently owns and operates 24 vessels of which 19 are owned and the rest rented.

Sadhav Shipping has a blue-chip clientele which includes big names such as ONGC, BPCL, DRDO, and major ports such as the Mumbai Port and Paradip Port.