Shreeji Shipping IPO: Should You Subscribe Or Not — Anand Rathi Report

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Anand Rathi Report

Shreeji Shipping Global Ltd. an integrated shipping and logistics services provider in India will launch its initial public offering on Aug. 19 and the offer closes on Aug. 21. The company has fixed the price band in the range of Rs 240 to Rs 252 per equity share.

Investors can place bids starting from a minimum of 58 shares and in multiples thereafter.

The Rs 410.7-crore IPO comprises only of fresh issue of 1.62 crore shares with a face value of Rs 10 each.

Beeline Capital Advisors Pvt. Ltd., and Elara Capital (India) pvt. Ltd. are the book-running lead managers for the public issue while Bigshare Services Pvt. Ltd. is the registrar to the offer.

Objects of the Issue

1. Acquisition of dry bulk carriers n Supramax category in the Secondary market.

2. Prepayment/re-payment of certain borrowings availed in the company.

3. General Corporate Purpose.

Strengths:

• Prominent player in integrated shipping and logistic service provider in India.

• Long-term institutional customer relationships in key sectors.

• Established cargo handling operations for Dry Bulk Cargo.

Key Strategies:

• Continued focus on cost optimization and improving operational efficiency.

• Continue to invest in their fleet and earthmoving equipment.

• Focus on expansion of their business operations from land to port to capitalize on industry opportunities.

• Acquire new customers and expand into new sectors.

Valuation

Shreeji Shipping Global is recognized as a leading and wellestablished player in the field of integrated shipping and logistics services in India. The company has successfully built and maintained long-standing relationships with reputed institutional customers across several critical industries.

Over the years, it has also developed a strong presence in cargo handling operations, particularly in the dry bulk cargo segment. In addition, the company’s operational strength is further reinforced by the advantage of owning and managing its own fleet, which enhances reliability, efficiency, and service delivery for its clients.

At the upper price band company is valuing at P/E of 28.5x to its FY25 earnings, with EV/Ebitda of 21.4x and market cap of Rs 41,055 million post issue of equity shares.

We believe that the IPO is fully priced and recommend a “Subscribe Long Term” rating to the IPO.

Click on the attachment to read the full IPO report:

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