Arvind & Company Shipping Agency IPO - Review, Today GMP

Arvind and Company Shipping Agency - Complete Overview

Established in 1987, Arvind and Company Shipping Agency is involved in the field of shipping and forwarding agency services. This company is a member of the Arcadia group and is situated in Jamnagar, Gujarat.

Arvind and Company Shipping Agency operates in two primary business segments: 
a) Chartering of Barges
b) Hotel and Hospitality

In the realm of shipping, the company manages various types of vessels, including Cargo Barges, Flat Top Barges, Crane Mounted Barges, Hopper Barges, Spud Barges, and tugs for Cargo.

The company expanded into the hospitality sector and now owns two hotels, namely "Hotel Millennium Plaza" and "Hotel 999," both located in Jamnagar, Gujarat.

As of March 31, 2023, the company has generated a revenue of Rs. 711.45 lakhs.

 

What does the company do? 

Arvind and Company Shipping Agency is involved in the field of shipping and forwarding agency services.

 

 

IPO Overview 

The Arvind and Company Shipping Agency IPO date is set to take place from October 12, 2023, to October 16, 2023. This SME IPO is categorized as a Fixed Price Issue IPO.

The IPO is expected to list on October 25, 2023. The total issue size for the upcoming SME IPO amounts to Rs. 14.74 Crores. Arvind and Company Shipping Agency's IPO price is set at Rs. 45 per share.

Out of the total issue, the company has allocated 50% of the shares to retail investors and the remaining 50% to other categories of investors.

 

Arvind and Company Shipping Agency IPO timetable (Tentative)

Events	Date
IPO Opening Date	12 October 2023
IPO Closing Date	16 October 2023
IPO Allotment Date	19 October 2023
Refund initiation	20 October 2023
IPO Listing Date	25 October 2023

 

Arvind and Company Shipping Agency IPO Details 

IPO Opening & Closing Date	12 October to 16 October 2023
Face value	Rs.10 per Share
Issue Price	Rs. 45 per Share
Lot Size	3000 Shares
Price of 1 lot	Rs. 135,000
Issue Size	3,276,000 Shares (aggregating up to Rs. 14.74 Cr)
Offer for sale	NA
Fresh issue	3,276,000 Shares (aggregating up to Rs. 14.74 Cr)
Listing at	NSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Skyline Financial Services Pvt. Ltd.

 

Arvind and Company Shipping Agency IPO Lot Details 

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	1 Lot
Minimum Lot Investment (HNI)	2 Lot

 

Arvind and Company Shipping Agency IPO Reservation

Other Investors Share Portion	50%
Retail Investors Share Portion	50%

 

Company Financial

Amount in Lakhs

Period	FY 23	FY 22	FY 21
Total Assets	3,381.18	1,860.94	578.46
Total Revenue	841.10	331.44	52.51
PAT	347.12	100.28	23.75
Net worth	914.05	566.92	467.61
Reserve & Surplus	913.05	565.92	466.61
Total Borrowings	2,232.21	1,221.04	105.84

 

Revenue Bifurcation of the Company

Amount in Lakhs

Particulars	May 31, 2023	March 31, 2023	March 31, 2022
Barge Rental Income	196.40	711.45	257.40
Hotel Division	36.90	-	-
Total	233.30	711.45	257.40

 

Revenue Split of the Company 

Particulars	May 31, 2023	March 31, 2023	March 31, 2022
Number of Barges	5	5	3
Revenue Split between different verticals of the company
Chartering of Barges (Rs. in Lakhs)	196.40	711.45	257.40
Hotel & Hospitality (Rs. in Lakhs)	36.90	129.40	74.03
Contribution to revenue from operations of top 1 / 3 / 5 customers (Chartering of Barge)
Top 1 Customers (%)	51.94%	41.79%	88.77%
Top 3 Customers (%)	79.69%	85.66%	100.00%
Top 5 Customers (%)	100.00%	100.00%	100.00%

 

Objective of the Issue 

The funds raised from the Fresh Issue will be allocated for the following purposes:

• Financing the company's capital expenditures.
• Covering general corporate expenses.
• Meeting the costs associated with the public issue.

 

Promoters and Management of Arvind and Company Shipping Agency

Mr. Arvind Kantilal Shah, Mr. Vinit Arvind Shah, Mrs. Parul Arvind Shah, and Mr. Chintan Arvind Shah are the company's promoters.

Pre-issue Promoter Shareholding	100%
Post-issue Promoter Shareholding	73%

 

Peer Comparison

As stated in the Arvind and Company Shipping Agencies Limited IPO DRHP, the company has not identified any publicly listed peers that are directly comparable to it.

 

IPO's Valuations

To evaluate the IPO valuation, we can utilise the data presented in the company's DRHP. Arvind and Company Shipping Agencies Limited IPO price is Rs. 45 per share and an EPS of Rs. 4.62, the company's P/E ratio, based on the issue price, is 9.74.

 

Dividend Policy 

The company has not distributed any dividends in the previous financial years, and any potential future dividend payments will depend on the company's financial performance.

 

IPO's Strengths 

• Highly capable promoters and management team with significant experience.
• A competitive cost structure and streamlined operational efficiency.
• Strategically located facilities that foster closer relationships with both vendors and customers.

 

IPO Weaknesses 

• The company's revenue heavily relies on its activities within the geographical region of the state of Gujarat.
• The company's income and profits are predominantly linked to the chartering of barges.
• Promoters and Directors of the company are currently facing significant legal disputes.
• The company operates under various statutory and regulatory permits, licenses, and approvals.
• The company is required to secure, renew, or uphold statutory and regulatory permits and approvals.
• A substantial portion of operational revenue is generated through a group entity, namely Arcadia Shipping and Trading Co.
• Potential conflicts of interest between the Company and its affiliated entities may arise.
• The Company experienced negative cash flow in its operational activities in previous years.

 

 

IPO GMP Today

Arvind and Company Shipping Agency SME IPO GMP is not yet available. 

 

Conclusion

The company operates in the barges segment and is also involved in providing hospitality services. The future of the company appears promising. Investors may apply for the issue after evaluating all the factors.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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