Shreeji Shipping IPO Set to Launch
Shreeji Shipping Global is gearing up for its initial public offering (IPO), which opens for subscription tomorrow and will run until August 21. The company has established a price band of Rs 240 to Rs 252 per share for its Rs 411-crore offering. In the grey market, shares are currently trading at a 10% premium to the upper issue price, indicating strong demand from investors.
IPO Details and Market Response
The Shreeji Shipping IPO is attracting significant attention, with the last grey market premium (GMP) reported at Rs 26. Given the upper price band of Rs 252, the anticipated listing price is around Rs 278 per share, suggesting a potential gain of approximately 10.32% for investors. This reflects a robust interest in the company, which specializes in shipping and logistics solutions for dry bulk cargo.
Scheduled to open for public subscription on August 19, the IPO will close on August 21. Anchor investors will have a dedicated bidding window on August 18. The offering consists entirely of a fresh equity issue, totaling 1.63 crore shares, with no offer-for-sale component. If the company successfully reaches the upper end of the price range, it will raise the full Rs 411 crore, which will be directed towards business expansion and strengthening its balance sheet.
Allocation Structure and Financial Goals
The IPO allocation is structured to reserve 50% for Qualified Institutional Buyers (QIBs), 35% for retail investors, and the remaining 15% for Non-Institutional Investors (NIIs). Shreeji Shipping plans to utilize Rs 251.2 crore from the proceeds to acquire Supramax-category dry bulk carriers from the secondary market, enhancing its operational capacity. Additionally, Rs 23 crore is earmarked for debt repayment, which will bolster the company’s financial stability, while the remaining funds will be allocated for general corporate purposes.
In terms of financial performance, Shreeji Shipping reported a revenue of Rs 610 crore for the fiscal year ending March 31, 2025, marking a 17% decline from Rs 736.17 crore in FY24. However, the company saw an increase in profitability, with Profit After Tax (PAT) rising 13.4% year-on-year to Rs 141 crore in FY25, up from Rs 124 crore in FY24. EBITDA also showed a slight increase of 1.4%, reaching Rs 200 crore in FY25 compared to Rs 197.89 crore in FY24, indicating improved efficiency and margins despite lower revenues.
Shreeji Shipping Global, based in Jamnagar, Gujarat, is the flagship company of the Shreeji Group, primarily operating along India’s west coast. The company has a strong presence in non-major ports and private jetties, a sector expected to experience significant growth in the coming years. According to a D&B report, India’s port cargo volume is projected to grow at a compounded annual growth rate (CAGR) of 10.8%, increasing from 1,540 million metric tonnes (MMT) in FY24 to 2,849 MMT by FY30. Ports in Gujarat are expected to grow even faster, with volumes nearly doubling from 317.2 MMT in FY24 to 720 MMT by FY30.
Beeline Capital Advisors Pvt Ltd and Elara Capital (India) Pvt Ltd are serving as the book-running lead managers for the IPO. Shreeji Shipping Global shares are anticipated to debut on the stock exchanges on August 26.
