Shipwaves Online - Dec. 25- BSE SME IPO review (Not Rated)

•    The company is engaged in providing shipping and logistical services for ocean, land and air cargo verticals to its clients.
•    The company offers most modernize and tech savvy methods for all sort of logistical services under one roof.
•    It is operating in a highly competitive and fragmented segment.
•    Based on its recent financial data, the issue appears aggressively priced.
•    Well-informed/cash surplus investors may park moderate funds for medium term.

PREFACE:
This company originally planed its IPO with a time line of September 30, 2025 to October 06, 2025, but withdrew the same at the last moment for the reasons better known to promoters and the merchant banker. Now it is coming with IPO with the same numbers with latest addition of FY26-H1 numbers with a new time line.

ABOUT COMPANY:
Shipwaves Online Ltd. (SOL) is comprehensive, single unified platform designed to meet client’s shipping and logistical needs. Its expertise spans across multimodal transportation solutions, offering seamless end-to-end support for shipments across Ocean, Land, and Air. With a focus on providing efficient, cost-effective, and reliable services, it enables businesses to manage and move shipments globally with ease.

SOL’s platform is built to offer real-time visibility, ensuring that clients have full transparency and control over their logistics operations from the point of origin to the final destination. By integrating the capabilities of multimodal transport, it provides businesses with the flexibility to choose the best routes and modes of transportation based on their specific requirements—be it speed, cost, or efficiency.

The Company offers two primary service categories—Digital Freight Forwarding and Enterprise SaaS Solutions—each designed to meet the evolving needs of businesses in the global logistics and supply chain industry. As a digital freight forwarder, it provides end-to-end logistics services by leveraging advanced technology to streamline the transportation process across multiple modes—ocean, land, and air. SOL’s platform facilitates hassle-free bookings, real-time shipment tracking, automated documentation, and efficient customs clearance. Through a digital-first approach, it helps businesses optimize freight movement, reduce manual intervention, and achieve cost and time savings. Its expertise covers everything from booking and managing cargo space to ensuring on-time deliveries, all while offering full visibility and transparency throughout the shipment lifecycle.

In addition to freight forwarding capabilities, SOL delivers robust Enterprise SaaS Solutions tailored to meet the complex demands of supply chain management. Its SaaS platform offers an integrated suite of tools designed to streamline logistics operations, providing businesses with complete visibility and control over their supply chain. These solutions include real-time data analytics, predictive insights for demand forecasting, supply chain optimization, inventory management, and comprehensive shipment planning tools. Its software platform helps enterprises of all sizes to digitalize and automate their logistics processes, improving overall efficiency, minimizing risks, and driving performance. Together, its Digital Freight Forwarding services and Enterprise SaaS Solutions form a cohesive and innovative approach to managing modern logistics challenges with precision and scalability.

The company pride itself on being a one-stop solution provider, offering a comprehensive range of services designed to meet the diverse and evolving needs of clients. Its goal is to ensure that every aspect of customers' logistics and supply chain demands is addressed seamlessly. From start to finish, whether it's managing complex freight forwarding operations or delivering cutting-edge Enterprise SaaS solutions, the company offers an extensive suite of services under one roof, ensuring convenience, efficiency, and streamlined operations. This holistic approach enables it to deliver unparalleled support and value, helping clients achieve their operational goals with ease and confidence. As of October 31, 2025, it had 34 employees on its payroll.

ISSUE DETAILS/CAPITAL HISTORY:
The company is coming out with its maiden IPO of 46960000 equity shares of Re. 1 each at a fixed price of Rs. 12 per share to mobilize Rs. 56.35 cr. The IPO opens for subscription on December 10, 2025, and will close on December 12, 2025. The minimum application to be made is for 20000 shares and in multiple of 10000 shares thereon, thereafter. Post allotment, shares will be listed on BSE SME. The issue constitutes 33.19% of post-IPO paid-up equity capital of the company. The company is spending Rs. 5.77 cr. for this IPO process, and from the net proceeds of the issue, the company will utilize Rs. 17.13 cr. for working capital, Rs. 10.00 cr. for investment in its subsidiary for working capital, Rs. 15.00 cr. for repayment/prepayment of certain borrowings, and Rs. 8.45 cr. for general corporate purposes.

The IPO is solely lead managed by Finshore Management Services Ltd., while Cameo Corporate Services Ltd. is the registrar to the issue. Anant Securities is the market maker.

The company has issued/converted entire initial equity shares at par value so far. The average cost of acquisition of shares by the promoters is Rs. 0.96, and Rs. 1.00 per share. 

Post-IPO, company’s current paid-up equity capital of Rs. 9.45 cr. will stand enhanced to Rs. 14.15 cr. Based on the upper price band of the IPO, the company is looking for a market cap of Rs. 169.79 cr. 

FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has posted a total income/net profit, of Rs. 69.49 cr. / Rs. 2.24 cr. (FY23 - Standalone), Rs. 97.28 cr. / Rs. 6.29 cr. (FY24 - Consolidated), Rs. 108.65 cr. / Rs. 12.20 cr. (FY25 - Consolidated). For H1 of FY26 ended on September 30, 2025, it earned a net profit of Rs. 4.68 cr. on a total income of Rs. 41.71 cr. This indicates declining trends, However, management clarified that their second half has around 60% earnings as a historical trend and hence any annualized numbers based on H1 performance will result in wrong indication. The company posted steady growth in its top and bottom lines for the reported periods. 

For the last three fiscals, the company has reported an average EPS of Rs. 0.82, and an average RoNW of 38.20%. The issue is priced at a P/BV of 3.69 based on its NAV of Rs. 3.25 as of March 31, 2025, and at a P/BV of 1.95 based on its post-IPO NAV of Rs. 6.16 per share.

If we attribute its FY26 annualized earnings on post-IPO expanded equity base, then the asking price is at a P/E of 18.18, and based on its FY24 earnings, the P/E stands at 13.95. Thus, the issue appears aggressively priced.

The company has posted PAT margins of 3.23% (FY23), 6.04% (FY24), 10.01% (FY25), 10.88 (H1-FY26)and RoCE Margins of 15.41%, 22.78%, 25.79%, 10.18%, respectively for the referred periods. 

DIVIDEND POLICY:
The company has not declared any dividends for the reported periods of the offer document. It will adopt a prudent dividend policy, based on its financial performances and future prospects.

COMPARISON WITH LISTED PEERS:
As per the offer document, the company has shown Tiger Logi., Lancer Container, Timescan Logi., as its listed peers. They are currently trading at a P/E of 14, NA, and 6.71 (as of December 05, 2025). However, they are not truly comparable on an apple-to-apple basis. This comparison appears to be an eyewash.

MERCHANT BANKER’S TRACK RECORDS:
This is the 31st mandate from Finshore Management in the last four fiscals. Out of the last 10 listings, 2 opened at discount, 1 at par, and the rest with premium ranging from 3.63% to 90% on the date of listing.