Shreeji Shipping IPO review

•    The company is engaged in providing specialized services for shipping and logistics for dry bulk cargo.
•    Currently it provides such services on 20 Indian ports and jetties and 1 port at Sri Lanka.
•    Though it marked declining trends in its top lines for the reported periods, it marked growth in its bottom lines following cost control management and specialized services.
•    Based on its recent financial data, the issue appears fully priced.
•    Investors may park funds for medium to long term.

ABOUT COMPANY:
Shreeji Shipping Global Ltd. (SSGL) is providing shipping and logistic solution for dry bulk cargo at various Ports and Jetties at India and Sri Lanka. As of March 31, 2025, it had fleet of more than 80 vessels (consisting of barges, mini bulk carriers (MBCs), tug boats and floating cranes) and more than 370 earthmoving equipment (consisting of material handling machines, excavators, pay loaders, tippers including trailers, tankers and other vehicles) in services of clients. The company has a legacy of more than three decades in the shipping and logistic industry with prominent experience in cargo handling, transportation, fleet chartering and equipment rentals and other ancillary services. Its customer list includes Adani Enterprises, Agarwal Coal Corp., Torrent Power, Tata International, Mohit Minerals, etc. to name a few.

It is the flagship company of Jamnagar based “Shreeji Group”, the company has evolved into an integrated shipping and logistic solution provider for dry bulk cargo handling at all-weather and seasonal ports in India and Sri Lanka. Though, it provides services at major ports, it is primarily focused on non-major ports and jetties, particularly along the West Coast of India. As of March 31, 2025, it provided services at more than twenty (20) ports and jetties including major Indian ports at Kandla, non-major ports at Navlakhi, Magdalla, Bhavnagar, Bedi and Dharmatar and overseas port at Puttalam Port (Sri Lanka). (Source: Dun & Bradstreet Report)

SSGL offers comprehensive shipping and logistic solutions for dry bulk cargo, including cargo handling and transportation services. Under its cargo handling segment, the company provides STS (Ship to Ship) Lighterage, Stevedoring and other port services including cargo management services. Further, as a part of logistic supply chain, it also provides transportation services for dry bulk cargo including port to premise drop-off and vice versa. For the period ended March 31, 2025, and for the Fiscal ended 2024, and 2023, our company handled total cargo volume of 15.71 MMTs, 13.78 MMTs, and 13.87 MMTs respectively. For the same period, volume of cargo transported by the company was 2.49 MMTs, 2.74 MMTs, and 2.96 MMTs, respectively.

It prolongs experience in the shipping and logistic industry and wide network of transportation and distribution model helps the company to deliver solutions to customers engaged across various industries. It primarily caters to customers in various sectors including Oil and Gas, Energy and Power, Fast Moving Consumer Goods (FMCG), Coal and Metal Industry. Its complete integrated end to end shipping and logistic services provides 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. Further, SSGL’s integrated service model provides it with greater business opportunities from customers involving wide range of services, contributing to its revenue and profitability. As of March 31, 2025, it had 1173 employees on its payroll.

ISSUE DETAILS/CAPITAL HISTORY:
The company is coming out with its maiden book building route IPO for 16298000 equity shares (worth Rs. 410.71 cr. at the upper cap). The company has announced a price band of Rs. 240 – Rs. 252 per equity shares of Rs. 10 each. The issue opens for subscription on August 19, 2025, and will close on August 21, 2025. The minimum application to be made is for 58 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE and NSE. The issue constitutes 10.00% of the post-IPO paid up equity capital. From the net proceeds of the fresh issue, the company will utilize Rs. 251.18 cr. for acquisition of dry bulk carriers in Supramax category in the secondary market, Rs. 23.00 cr. for repayment/prepayment of certain borrowings, and the rest for general corporate purposes.

The joint Book Running Lead Managers (BRLMs) to this issue are Beeline Capital Advisors Pvt. Ltd., Elara Capital (India) Pvt. Ltd., while Bigshare Services Pvt. Ltd. is the registrar to the issue. Spread X Securities Ltd., and Elara Securities (India) Pvt. Ltd. are the syndicate members.

The company has issued initial equity shares at par value. It has also issued further shares at a fixed price of Rs. 360818 per share in September 2024. It has also issued bonus shares in the ratio of 1400 for 1 in September 2024. The average cost of acquisition of shares by the promoters is Rs. 11.46 per share. 

Post-IPO, its current paid-up equity capital of Rs. 146.62 cr. will stand enhanced to Rs. 162.92 cr. Based on the upper cap of the IPO price band, the company is looking for a market cap of Rs. 4105.54 cr. 

FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has posted a total income/net profit, of Rs. 827.33 cr. / Rs. 118.89 cr. (FY23), Rs. 736.17 cr. / Rs. 124.51 cr. (FY24), and Rs. 610.45 cr. / Rs. 141.24 cr. (FY25). According to the management, with cost management and modern technology, it has increased its output with higher net margins from FY24 onwards. FY23 was exceptional year with sudden boost in its activities post the pandemic.

For the last three fiscals, the company has posted an average EPS of Rs. 9.29 and an average RoNW of 45.68%. The issue is priced at a P/BV of 10.76 based on its NAV of Rs. 23.41 as of March 31, 2025, and at a P/BV of 5.45 based on its post-IPO NAV of Rs. 46.27 per share (at the upper cap).

If we attribute FY25 earnings to its post-IPO fully diluted paid-up equity capital, then the asking price is at a P/E of 29.07. Based on FY24 earnings, the P/E stands at 32.98. The issue appears fully priced.

The company has posted PAT margins of 14.38% (FY23), 17.03 % (FY24), 23.24 % (FY25), and RoCE margins of 38.05 %, 35.33 %, 28.09 %, respectively for the referred periods.

DIVIDEND POLICY:
The company has not declared any dividends for the reported periods of the offer document. It has already adopted a dividend policy in December 2024, based on its financial performance and future prospects.

COMPARISON WITH LISTED PEERS:
As per the offer document, the company has no listed peers to compare with. 

MERCHANT BANKER’S TRACK RECORD:
The two BRLMs associated with this offer have handled 61 issues in the last three fiscals, out of which 2 issues closed below the issue price on listing date.