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Courage - Seven Islands Shipping To Tap IPO Market

Seven Islands files for six hundred cr IPO

To buy 3 vessels as the company doing well

As per the CRISIL Report, Seven Island Shipping held a significant market share in the Indian time charters for crude oil imports and it has been among the few shipping companies who have delivered profits over the last 3 fiscals

MUMBAI, Feb 17 (The CONNECT) - India’s 3rd Largest Seaborne Logistics company by Deadweight Tonnage Seven Islands Shipping has filed its papers with the stock markets regulator SEBI for Rs. 600 cr Initial Public Offering. The company had earlier tried to tap the capital markets in 2017. The public issue comprises of a fund raise via fresh issue amounting to Rs 400 cr and an Offer for Sale aggregating up to Rs. 200 cr by PE investor FIH Mauritius Investments aggregating up to Rs 100 cr and promoter selling shareholder, Thomas Wilfred Pinto of Rs 85.64 crs and Leena Metylda Pinto aggregating upto 14.35 crs.

The portion reserved for Qualified Institutional Buyers will be upto 50% of the offer, Non-Institutional Investors to have upto 15% of the portion reserved while upto 35% will be reserved for the Retail Investors.

The Net Proceeds raised from the fresh issue are to be utilized to acquire 1 Very Large Crude Carrier vessel and 1 Medium Range Vessel from the secondary market at an estimated expense of Rs 352.43 crs.

The company started its operations in 2003 with one vessel and currently has 20 Indian flagged and Indian Owned Liquid Cargo Vessels with a total DWT capacity of 1,105,682 MT which across small, medium and long-range vessels cater to transport of products like white oils, black oils, lube oil and liquid chemicals. Over the last 18 years the company has acquired 40 vessels and sold 20 vessels, it typically acquires pre owned vessels depending for the demand for a vessel in the segment it operates in.

As per the CRISIL Report, Seven Island Shipping held a significant market share in the Indian time charters for crude oil imports and it has been among the few shipping companies who have delivered profits over the last 3 fiscals and also have been so since the first year of its operations. It intends to focus on time charter arrangements considering it provides more stability, predictability and certainty of revenues.

Between FY18-FY20, the revenue from contracts and EBITA grew at a CAGR of 31.3% and 14% respectively and its Return on Average Equity and EBITA margin is amongst the highest in the seaborne logistics industry. JM Financial Limited and IIFL Securities Ltd are the BRLMS to the Issue.

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