ABS Marine Services Limited is specialized in Ship Management, Vessel Ownership, Marine Services, and Project Management. ABS Marine Services IPO is set to raise Rs. 96.29 crores. The issue is entirely a fresh issue of 65.5 lakh shares.
IPO opens
May 10, 2024
IPO Closes
May 15, 2024
IPO Size (Rs.)
₹96.29 Cr
IPO Size (shares)
6,550,000 shares
Breakup
Fresh issue only
Face Value:
₹ 10
IPO Price in Rs :
₹140 to ₹147 per share
Minimum Lot
1000 Shares
Listing At
NSE SME
QIB
~50 %
NII Quota
~15%
Retail Quota
~35%
Lead Manager
GYR Capital Advisors Private Limited
Registrar
Purva Sharegistry India
Market maker
Giriraj Stock Broking, Commodity Mandi
About ABS Marine Services Limited:
We are a fully integrated company with in-house complete vessel management including commercial management. We provide crew management services to ships comprising Oil Tankers, Gas Tankers, Bulk Carriers, Passenger Vessels Offshore Support vessels, Harbour Crafts and High Speed Crafts. Our customers are primarily comprised of Government of India, public sector undertakings, port authorities and private sector. Our existing business is divided into four divisions – 1) Ship Owning 2) Ship Management 3) Marine Services and 4) Port Services. For further details, please see “Our Business” on page 111.
Financials: ABS Marine Services Limited
They are a fully integrated company with in-house complete vessel management including commercial management.
They provide crew management services to ships comprising Oil Tankers, Gas Tankers, Bulk Carriers, Passenger Vessels Offshore Support vessels, Harbour Crafts and High Speed Crafts.
Their customers are primarily comprised of Government of India, public sector undertakings, port authorities and private sector.
Their existing business is divided into four divisions –
1) Ship Owning
2) Ship Management
3) Marine Services and
4) Port Services.
The company has offices in Mumbai and Chennai, a branch office in Cochin, and a Satellite Office in Kakinada.
The promoters of the company are Capt. P B Narayanan, Shreelatha Narayanan, Arathi Narayanan and Capt. Jeevan Krishnan Sanjeevan.
Particulars/ Rs. Lacs
Mar 31, 2024
Mar 31, 2023
Mar 31, 2022
Revenue from Operation
13,515.68
11,157.51
7,163.01
Restated profit for the year
2,355.41
952.74
809.43
Share Capital
1,800.00
1
1
Net Worth
11,717.39
9,352.42
8,370.01
Diluted Earnings per Share
13.09
5.29
4.5
Net Asset Value
65.1
51.96
46.5
Total Borrowings
4,567.96
4,866.29
6,114.77
Post issue Share Capital
1360
FV
10.0
IPO price
147.0
EPS Fy23
7.0
PE Fy23
21.0
EPS Fy24
17.3
PE Fy24
8.5
Market cap in Lacs
19,992
Market cap / Sales
1.48
Anchors: ABS Marine Services IPO
ABS Marine Services IPO: Salient Points
.There business is directly related to levels of economic activity in general, and international shipping volumes, particularly in the energy-related shipping sector.
The Net Proceeds are proposed to be utilized in the manner set forth below:
Sr. No.
Particulars
Amount
1.
To fund the acquistion of vessels
Upto 5,500
2.
To fund Working Capital Requirement
Upto 2,500
Key Metrics
Key Performance Indicator
Fiscal 2023-24
F.Y 2022-23
F.Y 2021-22
Revenue from Operations
13,515.68
11,157.51
7,163.01
Total Income
13801.89
11,380.78
8,283.98
EBITDA
4,467.33
3,030.13
3,096.97
Net Profit for the Year / Period
2,355.41
952.74
809.43
Return on Net Worth
20.10
10.19
9.67
Return on Capital Employed
18.67
11.66
9.80
Debt-Equity Ratio
0.39
0.52
0.73
Their customers are primarily comprised of Government of India, large industrial concerns, public sector undertakings, port authorities and private sector. They have also entered into 10 (ten) strategic contracts with Government agencies which contributes towards their Revenue from Operations. Out of the ten contracts, one major contract with the Ministry of Earth and Science (MOES) contributes towards 23.50% of the Revenue from operations.
As of ,March 31 2024, their owned, chartered-in and totally managed fleet comprises of the following type of vessels:
Sr. No
Type of Vessel
Number of Vessel
Owned /Ship Management / Chartered
1.
DP Anchor Handling Towing Supply Vessel
1
Owned & Managed
2.
DP Multi Purpose Platform Supply Vessel
1
Owned & Managed
3.
DP Multi Purpose Offshore Support Vessel
1
Chartered & Managed
4.
Harbour Crafts
3
Owned & Managed
5.
DP Ocean Research Vessels
2
Managed
6.
Coastal Research Vessels
3
Managed
7.
Fishery Oceanographic Research Vessel
1
Managed
8.
Bulk Carriers
4
Managed
9.
Oil Tankers
10
Managed
10.
Pasenger Vessels
10
Managed
Peers
Company
CMP (₹)
Revenue(₹cr)
Net Profit(₹ cr)
NPM %
PE
Macp/sales
RONW
ABS Marine
147
113.8
9.5
8.4%
21(8.5)
1.5
10.19%
Shipping Corporation of India
206
5907.2
800
13.5%
14.1
1.9
13.52%
Seamec Limited
247
457.2
25
5.5%
19.4
0.69
4.45%
ABS Marine Services also provides crew management services for an additional 24 ships, including Oil Tankers, Gas Tankers, Bulk Carriers, Passenger Vessels, and High-Speed Crafts.
While Revenue has Increased from Rs.57 Crores in FY22 to Rs.118 Crores in FY24 (~2x), Profit after Tax has Increased from 7 Crores in FY22 to 19 Crores in FY24. ( ~ 3x)
ABS Marine Services IPO is coming at a PE ratio of 21x (FY23 Earnings) and 8.5x (fy24 earnings)
It is not common to have HDFC Bank as an anchor investor in a SME IPO.
I intend to apply in ABS Marine Services IPO subject to availability of funds. They specialize in providing comprehensive maritime services , offshore and harbor crafts, ship management, and crew management services.I have a positive view on the company.
GMP as reported on social media has been Rs. 100.
GYR Capital Advisors Pvt. Ltd is the Lead Manager to the issue. with an outstanding record. Past issues handled by them include Naman In-Store (India) Limited, Koura Fine Diamond Jewelry Limited, Maxposure Limited, Kay Cee Energy & Infra Limited, Trident Techlabs Limited, Maitreya Medicare Limited, Basilic Fly Studio Limited, Srivari Spices and Foods Limited, Essen Speciality Films Limited, MCON Rasayan India Limited, Agarwal Float Glass India Limited, Anlon Technology Solutions Limited, Uma Converter Limited, Sabar Flex India Limited, Mafia Trends Limited, Pritika Engineering Components etc.
SME IPOs are quite volatile and new retail investors need to exercise considerable caution in my view.
This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.