Seven Islands Shipping IPO - 7 Things to Know
Seven Islands Shipping Ltd, is a seaborne logistics company that manages end to end logistics for international trading customers. The company had secured SEBI clearance for its IPO in end of March last year and will be valid till the end of March 2022, by which time the issue has to come out. However, the company has not yet finalized the date of IPO due to unfavourable market conditions.
7 Important Things to Know About Seven Islands Shipping IPO
1) Seven Islands Shipping Ltd has filed for a Rs.600 crore IPO with SEBI which comprises of a fresh issue of Rs.400 crore and an offer for sale of OFS of Rs.200 crore. The company had originally made plans for an IPO in the year 2017 but had put it off at that point of time after the markets had turned weak after a slew of IPOs had underperformed.
This will be the second attempt for an Seven Islands Shipping IPO and time may be running out for the approval to lapse.
2) In this particular case, Seven Islands Shipping Ltd had filed its DRHP with SEBI back in February 2021 and had received SEBI observations by the last week of March 2021. In IPO lingo, the SEBI observations are equivalent to a SEBI approval. The SEBI approval is valid for a period of 1 year so this current SEBI approval can support an IPO by March end of 2022, in the absence of which they will have to file DRHP afresh.
3) Out of the Rs.200 crore offer for sale (OFS) of Seven Islands Shipping Ltd, the offer of Rs.100 crore will be done by FIH Mauritius Investments. In addition, promoter of Seven Islands Shipping Ltd, Thomas Wilfred Pinto, will offer shares worth Rs.85.64 crore in the OFS while Leena Metylda Pinto will offer shares worth Rs.14.35 crore in the OFS.
4) Regarding the fresh issue component of Rs.400 crore, Seven Islands Shipping Ltd will utilize a predominant amount of Rs.352 crore for acquiring one large crude carrier vessel and one medium range vessel from the secondary market. This will be used to facilitate the seaborne logistics business of Seven Islands Shipping Ltd.
5) According to information available in the DRHP, Seven Islands Shipping Ltd will reserve a total of 50% of the issue size for the qualified institutional buyers (QIBs), 15% for the non-institutional investors (HNI) and the balance 35% will be reserved for the retail investors.
6) Seven Islands Shipping Ltd commenced operations in the year 2003 and while it started with just one vessel, today it owns a complete fleet of 20 India-flagged and India-owned liquid cargo vessels. The liquid cargo vessels are normally used to transport crude oil and refined oil, for which the sea route is normally the most economical.
Over the last 18 years of operations, Seven Islands Shipping Ltd has purchased 40 vessels and sold 20 vessels leaving the company with a total fleet of 20 vessels. Currently, Seven Islands Shipping Ltd has a total dead weight tonnage (DWT) capacity of 11,05,682 MT.
7) The IPO of Seven Islands Shipping Ltd will be lead managed by JM Financial and IIFL Securities Ltd. They will act as the book running lead managers or BRLMs to the issue.
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