Sadhav Shipping Ltd IPO - Review, Valuation, Date & GMP

Sadhav Shipping Limited IPO - Complete Overview

Established in 1996 and based in Mumbai, Sadhav Shipping Limited (SSL) has become a major player in India's maritime industry. With a fleet of 19 owned and 5 rented vessels, SSL specialises in owning and operating marine assets for ports, coastal logistics, and related services.

Originally known as "Homa Offshore & Shipping Company Private Limited," SSL underwent name changes before becoming a public limited company as "Sadhav Shipping Limited." Founded by Mr. Kamal Kant Biswanath Choudhury, SSL benefits from strong maritime and managerial leadership.

 

SSL's operations focus on three main areas:

1. Offshore Logistics: Supporting the Oil & Gas industry's exploration and production, SSL offers services such as anchor handling, supply of drilling materials, and offshore transportation, with a focus on safety.

2. Port Services: SSL provides comprehensive services to ports, including armed patrolling, hydrographic surveys, and harbour transportation tailored to the needs of major ports and private entities.

3. Oil Spill Response: SSL established India's first port-based Tier 1 Oil Spill Response Facility Center, offering oil spill response services to major ports, demonstrating its commitment to environmental protection and maritime safety.

Pictures of some of their vessels are as follows:

 

Sadhav Shipping Limited IPO Overview

Sadhav Shipping Limited IPO date is slated to be open for subscription from February 23, 2024, to February 27, 2024. This NSE SME IPO follows a Fixed Price Issue IPO.

Sadhav Shipping Limited IPO price is fixed at Rs. 95 per share. 

The total issue size of this IPO amounts to Rs.38.18 CR. The company has reserved 50% for retail investors and 50% for other investors. 

 

 

Sadhav Shipping Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	23 February 2024
IPO Closing Date	27 February 2024
IPO Allotment Date	28 February 2024
Refund initiation	29 February 2024
IPO Listing Date	01 March 2024

 

Sadhav Shipping Limited IPO Details

IPO Opening & Closing Date	23 February to 27 February2024
Face Value	Rs.10 per share
Issue Price	Rs.95 per share
Lot Size	1200 Shares
Price of 1 lot	Rs. 114,000
Total Issue Size	4,018,800 Shares (aggregating up to Rs.38.18 Cr)
Fresh issue	4,018,800 Shares (aggregating up to Rs.38.18 Cr)
Listing at	NSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Maashitla Securities Private Limited

 

Sadhav Shipping Limited IPO Lot Details

Application	Lot	Shares	Amount
Minimum Lot Investment (Retail)	1 lot	1200	Rs.1,14,000
Maximum Lot Investment (Retail)	1 lot	1200	Rs.1,14,000.
Minimum Lot Investment (HNI)	2 lot	2400	Rs.2,28,000

 

Sadhav Shipping Limited IPO Reservation

Retail Shares Offered	50%
Other Shares Offered	50%

 

 

Company Financial

The company's financials increased significantly from FY22 to FY23, indicating growth and improved financial performance.

(Amount in Lakhs)

Period	Sep 30, FY 23	Mar 31, FY 23	Mar 31, FY 22
Total Assets	13,113.49	11,628.71	6,909.44
Total Revenue	3,385.69	7,890.59	6,977.94
PAT	406.97	775.44	300.93
Net worth	4,501.44	4,094.46	3,503.51
Reserve & Surplus	4,206.18	3,799.21	3,208.26
Total Borrowings	6,681.84	5,527.45	2,083.08

 

Revenue Distribution Segment-Wise

The revenue distribution segment-wise remained relatively consistent across the fiscal years.

( in % age)

Particulars	Sep 30, FY 23	Mar 31, FY 23	Mar 31, FY 22
Offshore Vessel for Logistic	49.57%	54.96%	51.66%
Oil Spill Response	17.75%	12.98%	14.53%
Port Services / Others	32.67%	32.07%	33.82%
Total	100.00%	100.00%	100.00%

 

Revenue by Operations

Revenue from operations showed a significant increase in FY23 compared to FY22. 

(Amount in Lakhs)

Particulars	Sep 30, FY 23	Mar 31, FY 23	Mar 31, FY 22
Revenue from operations	3,368.91	7780.84	6955.33
Other Income	16.78	109.75	22.61
Total Revenue	3,385.69	7890.59	6977.91

 

The Objective of the Issue

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

• Paying back or paying off some or all of the loans the company has taken.

• Helping to buy more boats or ships.

• Having enough money for day-to-day business needs.

• Using funds for general company purposes.

 

Promoters and Management of Sadhav Shipping Limited IPO

1. Mr. Kamal Kant Biswanath Choudhury.

2. Mrs Sadhana Choudhury.

3. Mr. Vedant Kamal Kant Choudhury.

4. Mr. Subhas Chandra Choudhury 

Pre-issue Promoter Shareholding	96.44%
Post-issue Promoter Shareholding	69.44%

 

Sadhav Shipping Limited IPO Lead Managers

•  Isk Advisors Pvt Ltd

 

 

Peers of Sadhav Shipping Limited IPO listed in India:

From Sadhav Shipping Limited's perspective, it has a lower P/E ratio and EPS compared to some of its listed peers in India.

Name of the Company	Face value (Rs. per Share)	P/ E	EPS (Basic) (Rs.)
Sadhav Shipping Ltd.	10.00	12.67	7.50
Seamec Limited	10.00	74.06	16.23
Knowledge Marine& Engineering Limited	10.00	30.96	51.56
Garware Marine Industries Limited	10.00	44.95	0.24

 

Evaluation

The IPO is priced within the range of Rs. 95 per share.

Evaluation of P/E Ratio:

- Considering the FY23 EPS of Rs 7.50 from the last year, the resulting P/E ratio is 12.67x.

- Taking into account the weighted EPS of Rs 5.25 for the last three years, the P/E ratio amounts to 18.10x.

Comparative Analysis with Industry Average :

As a result, the IPO price range, with a P/E ratio ranging from 12.67x to 18.10x, seems undervalued in comparison to the industry average of 32.2x.

 

Dividend Policy

The company hasn't paid dividends in past fiscal years. Whether we can pay them in the future depends on factors like profits, past dividend trends, capital needs, legal restrictions, and other relevant considerations evaluated by our Board.

 

IPO's Strengths

• Diverse asset portfolio: Owns and operates 24 vessels, including 19 owned and 5 rented vessels of various types and sizes.

• Strong client base: Primarily serves AAA-rated clients in the oil & gas sector such as ONGC, BPCL, and major ports like Mumbai Port.

• Seasoned Player: Established in the ship operation business for 27 years.

IPO's Weaknesses

• Outstanding legal proceedings: Potential adverse impact on business, financial condition, and results of operations.

• Highly competitive industry: Subject to intense price competition, which may depress vessel day rates and utilisation rates, impacting business and financial performance.

• Legal proceedings: Ongoing legal proceedings pose a potential threat to the company's business, financial health, and operational outcomes.

 

 

IPO GMP Today 

The Latest GMP of Sadhav Shipping Limited's IPO is Rs.25.

 

Conclusion

Sadhav Shipping Limited, a Mumbai-based maritime company with a history dating back to 1996, is set to launch its IPO from February 23, 2024, to February 27, 2024. With a fleet of vessels catering to offshore logistics, port services, and oil spill response, Sadhav Shipping has demonstrated its prowess in the maritime industry. The company's financials have shown substantial growth from FY22 to FY23, indicating a positive trajectory. The IPO is priced at Rs. 95 per share, aiming to raise Rs. 38.18 crore, with 50% reserved for retail investors.

However, there are potential weaknesses, such as legal proceedings and intense industry competition that investors should consider.

While the IPO's GMP is yet to be determined, the company's diverse asset portfolio, strong client base, and decades-long presence in the industry position it as a seasoned player with promising potential.

 

 

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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