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IPO Details

• IPO Opening Date: August 19, 2025
• IPO Closing Date: August 21, 2025
• IPO Size: ₹410.71 Cr, entirely Fresh Issue
• IPO Price Band: ₹240-252 per share
• Lot Size: 58 shares
• Investor Allocation: 50% for QIBs), 15% forNIIs, and35% for Retail
• Lead Managers: Beeline Capital Advisors Private Limited, Elara Capital (India) Private Limited
• Registrar: Bigshare Services Private Limited

About the Company

• History: Established as a partnership firm (M/s Shreeji Shipping) in 1995, converted to a private limited company on April 11, 2024, and then to a public limited company on November 18, 2024. It has over three decades of industry experience.
• Main products/services: Provides integrated shipping and logistics solutions for dry bulk cargo, including Ship-to-Ship (STS) lightering, stevedoring, cargo management, transportation, fleet chartering, and equipment rentals.
• Operations: Operates across various ports and jetties in India and Sri Lanka, primarily focusing on non-major ports along the West Coast of India (e.g., Navlakhi, Magdalla, Bhavnagar, Bedi, Dharmatar) and Puttalam Port in Sri Lanka.
• Fleet: As of March 31, 2025, it owns a fleet of more than 80 vessels (barges, mini bulk carriers, tugboats, floating cranes) and over 370 earthmoving equipment. The marine infrastructure is entirely owned by the Shreeji Group and is almost debt-free.
• Employees: Had 1,173 employees as of March 31, 2025.
• Promoters: Ashokkumar Haridas Lal (Chairman & Managing Director) and Jitendra Haridas Lal (Joint Managing Director). They have a combined experience of over 60 years in the shipping and logistics industry.

Financials

Post IPO Market cap: Rs. 4,105 cr. Market cap/Sales (FY25): 6.76 times. P/E FY24: 29.07 times. P/E FY25: 29.07 times . The company’s revenue has declined over the past three fiscal years, but its PAT and EBITDA have shown growth.

Anchor Investors

Shreeji Shipping Global Ltd raised ₹123.2 crore from 15 anchor investors. The top 10 anchor investors with their percentage allocation are: Bank of India Flexi Cap Fund (10.2%), Morgan Stanley Asia Pte (8.5%), BNP Paribas Financial Markets (7.8%), Aarth AIF Growth Fund (6.5%), Viney Growth Fund (5.9%), HDFC Mutual Fund – Transportation and Logistics Fund (5.4%), SBI General Insurance Company (4.8%), Aditya Birla Sun Life Insurance Company (4.3%), Edelweiss Trusteeship Co Ltd (3.9%), and ICICI Prudential Equity Fund (3.6%). The remaining five anchor investors include Kotak Mahindra Life Insurance, Quantum Mutual Fund, Bajaj Allianz Life Insurance, Reliance General Insurance, and Taurus Equity Fund. Total allocation to mutual funds is 19.5%.

Salient points

• Use of funds: Proceeds will be used for the acquisition of dry bulk carriers in the Supramax category (₹251.17 Cr), pre-payment/re-payment of outstanding borrowings (₹23.00 Cr), and general corporate purposes (not exceeding 25% of gross proceeds). The company plans to acquire mother vessels, build coastal vessels, and enter the container lighterage market.
• Business scenario: The Indian logistics sector is considered vital for economic growth. Indian port cargo is projected to grow at a CAGR of 10.8% by Fiscal 2030, and Gujarat ports specifically at 17.5% CAGR by Fiscal 2030. The shipping industry is characterized as highly cyclical.
• Business operations: Specializes in lighterage operations, particularly in shallow waters with high tidal variations. Handles approximately 16-17 million tons of dry bulk cargo annually at anchorage.
• Revenue Model: Operates on a business-to-business (B2B) model, providing an integrated single-window solution for various logistics needs. Revenue is influenced by global shipping rates.
• Business strategy: Focuses on non-major ports and aims to expand its marine infrastructure, including potentially acquiring berths at new ports like the upcoming Padwan port. Also conducting research on alternative fuels and hydrographic testing.
• Risks: Revenue is heavily dependent on cargo handling volumes. The company faces risks from adverse developments in non-major ports and relies on public domain information for some promoter group disclosures due to lack of consent. The objects of the IPO have not been appraised by external financial institutions, and there is inherent volatility in the stock market and the shipping industry cycle. Differences exist between Ind-AS and other accounting principles.
• Litigations: No material criminal litigations reported against promoters. Two scrutiny notices related to tax proceedings for promoters in FY2023-24 with unascertainable amounts are outstanding. No lockouts or strikes have occurred.
• Revenue split by region: In Fiscal 2025, India accounted for 92.84% of revenue, and Sri Lanka accounted for 7.16%. In Fiscal 2024, Guinea also contributed 6.03%.
• Revenue split by product or service: The company’s main services include cargo handling, transportation, fleet chartering, and equipment rentals. Coal handling is a significant part of its business, contributing 17.60% of revenue in FY25.
• Capacity utilisation: The company expanded its margins through operational efficiency and higher asset utilization.
• Expansion strategies: Plans include acquiring two second-hand dry bulk carriers and has received a Letter of Intent (LOI) for floating crane facilities at Syama Prasad Mookerjee Port, Kolkata.
• Clients: Serves clients such as Torrent Power, Ultratech Cement, Adani Enterprises, Ceylon Shipping Corporation Limited, Ambuja Cement, ACC, and ArcelorMittal. Top 10 customers accounted for 64.12% of revenue in FY25.
• Working capital & inventory days: Current ratio was 0.95 in FY25. Trade receivables were ₹1,545.83 million in FY25.
• CAGR profits/Margins last 3 years: PAT grew by 9% CAGR over two years, and EBITDA grew by 3% CAGR over two years. PAT margin increased from 14.38% (FY23) to 23.24% (FY25), and EBITDA margin increased from 22.82% (FY23) to 33.03% (FY25).
• EV/EBITDA: 21.04 times (FY25).

Peers

There are no listed peers.

Management commentary

The company’s key motto is to be a world leader in shipping services, emphasizing business ethics, professionalism, family values, and hiring skilled professionals. The IPO proceeds are intended to add new capabilities for customers, including purchasing mother vessels, building coastal vessels for cost reduction, and entering the container lighterage market in India, drawing parallels with the Mississippi River model. The management, being the second generation in the business, has introduced innovations such as implementing a “lean” concept (originally from Toyota Japan) to services and conducting continuous research on alternative fuels and hydrographic testing for better economic efficiency. For investors, the management highlights the company’s consistent growth over three decades and anticipates continued growth for generations, advising a long-term perspective.

Opinion

I have a neutral view on the IPO. May apply or skip. Presently it is commanding GMP of 13-14%.

• Post IPO equity capital: Rs. 162.92 crore. P/E for FY24: 29.07 times. P/E FY25: 29.07 times.
• The company’s niche in dry bulk cargo logistics, strong asset base. It has focus in non-major ports
• Favorable industry projections for port cargo growth in India.
• Pricing is aggressive.
• Revenues have gone down in last 3 years while margins have improved.
• This post is exploratory and educational purposes only.
• 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.