Marinetrans India Ltd. IPO: Review, Valuation, Date & Todays GMP

Marinetrans India Limited IPO    - Complete Overview

Established in June 2004, Marinetrans is a company that deals with shipping goods across the sea. It started by helping move freight and later expanded to provide Door-to-Door Delivery and 3PL services in collaboration with other service providers. The company offers various services related to transportation and freight, including both sea and air freight.

Marinetrans has its main office in Navi Mumbai, Maharashtra, and another branch in Ahmedabad, Gujarat. It mainly works through different locations in India like JNPT, Nhava Sheva, Mundra, Kandla, Vizag, Chennai, and more to transport cargo globally.

What does the company do?

Marinetrans serves as a logistical intermediary between shipping lines and customers, facilitating the smooth delivery of goods. Their primary responsibilities include verifying sales booking requests, collaborating with shipping lines, and overseeing the direct transport of goods to customers. They handle stuffing and transportation within the dock area, ensuring seamless cargo handling. While Marinetrans doesn't operate directly through ports, it plays a crucial role in streamlining the logistics process, bridging the gap between shipping lines and customers.

 

Marinetrans India Limited IPO Overview

Marinetrans India Limited IPO  date is slated to be open for subscription from November 30, 2023, to December 5, 2023. This NSE SME IPO follows a Fixed Price Issue IPO. 

The Marinetrans India Limited IPO  price is fixed at Rs.26 per share. The upcoming NSE SME IPO will be listed on December 11, 2023.

The total issue size of this IPO amounts to Rs.10.92 CR. Within this total issue, 50% is issued to retail investors, and 50 % is issued to other investors.

Marinetrans India Limited IPO  timetable (Tentative)

Marinetrans India Limited IPO  Details

 

Marinetrans India Limited IPO  Lot Details

 

Marinetrans India Limited IPO  Reservation

 

 

Company Financial

As of May 30 in FY 23, the company's total assets increased to 2,618.58 lakhs, and total revenue surged from 2,305.89 lakhs (FY 22) to 15,036.84 lakhs. However, the Profit After Tax (PAT) dropped from 186.24 lakhs to 13.91 lakhs. The net worth strengthened from 1,451.22 lakhs to 1,617.96 lakhs, and total borrowings increased from 252.75 lakhs to 603.68 lakhs.

(Amount in Lakhs)

Revenue By operations

In the revenue breakdown, main operations brought in 15,027.09 lakhs in FY 23, a drop from 20,321.22 lakhs in FY 22. There's a rise in other income from 6.01 lakhs to 9.75 lakhs. Altogether, total revenue, including both, reached 20,327.23 lakhs in FY 23, showing an increase from the previous fiscal year.

(Amount in Lakhs)

The objective of the Issue

The company intends to use the net proceeds for the following objectives.

• Issue Expenses.

• General Corporate Expenses.

• Funding of working capital requirements of the Company.
  
  

 

Promoters and Management of Marinetrans India Limited IPO

1. Mr Tirah Kumar Babu Kotian 

2. Mr. Arunkumar Narayan Hegde.

Marinetrans India Limited IPO Lead Managers

•  Swaraj shares and securities private limited
  
  

Peers of Marinetrans India Limited IPO

Among Marinetrans India Limited and its IPO peers, slight variations exist in their financial performance. While Marinetrans has a P/E ratio of 14.53 and an EPS of ₹1.79, Cargosol Logistics stands out with a lower P/E of 8.56 and a higher EPS of ₹4.79. Investors should consider these differences in valuation and earnings when assessing investment opportunities.

 

IPO's Valuations

To evaluate the Marinetrans India Limited IPO, we can utilize the information presented in the company's DRHP and RHP. Marinetrans India Limited IPO is fixed at Rs.26 per share, with an EPS of Rs.1.79. Based on the issue price the company's P/E ratio is calculated at 14.52.

 

 

 

Dividend Policy

The company does not have a formal dividend policy. Its capacity to declare dividends in the future hinges on its earnings and financial health.

IPO's Strengths

• Well-defined organizational structure

• Organization Stability, Rich Management Experience, and Skilled Team

• Smooth Flow of Operations

 

IPO's Weaknesses

• Involved in legal proceedings at various court levels.

• Potential need for provisions for future payments.

• Broad litigation scope involving the company, subsidiaries, promoters, and directors.

• Uncertainty around IPO Grey Market Premium (GMP).

 

IPO GMP today

The GMP for the Marinetrans  is Rs. 3

Conclusion

While Marinetrans India Limited IPO presents strengths such as a well-defined organizational structure, stability, and a skilled team, it is important for investors to consider the identified weaknesses. The company's lack of a formal dividend policy and the uncertainty surrounding the IPO GMP should be carefully evaluated before making investment decisions. Also company is company is currently involved in legal proceedings at different levels, potentially leading to increased expenses and liabilities. Therefore investors are advised to conduct thorough due diligence and assess the risks associated with these weaknesses to make informed investment choices.