Sahara Maritime IPO - Complete Overview

Established in 2009, Sahara Maritime Limited, based in Mumbai, Maharashtra, India, offers comprehensive logistics solutions for the international movement of goods. Specializing in Freight Forwarding, including Sea freight, Warehousing, Transportation, Multimodal Transportation, and loading/unloading services, a range of end-to-end solutions and value-added services is provided.

Operating in key locations like Mumbai, JNPT, Ahmedabad, Mundra, Delhi, Chennai, Kolkata, and more, supported by a robust transportation fleet, strength lies in effective communication and strong trade relationships.

Originally incorporated as a custom clearance broker, Sahara Maritime Limited evolved into a public limited company offering diverse logistics services. Registered with the Director General of Shipping, Ministry of Shipping, Government of India, as a Multimodal Transport Operator, negotiable multimodal transport documents are issued, positioning the company as an independent player in the logistics field.

Their services extend to regulatory compliance, customs clearance, and industry-specific solutions. Catering primarily to the domestic market in Maharashtra, the diverse customer base spans sectors such as Ready-made Garments, Imitation Jewellery, Automotive Engineering, FMCG, Footwear, and more.

 

Sahara Maritime IPO Overview

Sahara Maritime IPO date is slated to be open for subscription from December 18, 2023, to December 20, 2023. This BSE SME IPO follows a Fixed Price Issue IPO.

Sahara Maritime IPO price is fixed at Rs. 81 per share. The upcoming BSE SME IPO will be listed on December 26, 2023.

The total issue size of this IPO amounts to Rs.6.88 CR. Within this total issue, 50% is issued to retail investors, and 50% is issued to other investors.

 

 

Sahara Maritime IPO timetable (Tentative)

Events	Date
IPO Opening Date	18 December 2023
IPO Closing Date	20 December 2023
IPO Allotment Date	21 December 2023
Refund initiation	22 December 2023
IPO Listing Date	26 December 2023

 

Sahara Maritime IPO Details

IPO opens on Dec 18, closing on Dec 20, 2023, at Rs. 81 per share. 

IPO opening & closing date	18 December to 20 December 2023
Face value	Rs. 10 per share
Issue Price	Rs. 81  per share
Lot Size	1600 Shares
Price of 1 lot	Rs. 129,600
Total Issue Size	849,600 shares (aggregating up to Rs. 6.88 CR)
Offer for sale	shares (aggregating up to Rs. Cr)
Fresh issue	849,600 shares (aggregating up to Rs. 6.88 CR)
Listing at	BSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Bigshare Services Pvt Ltd

Sahara Maritime IPO Lot Details

Application	Lot	Shares
Minimum Lot Investment (Retail)	1 lot	1600
Maximum Lot Investment (Retail)	1 lot	1600
Minimum Lot Investment (HNI)	2 lot	3200

 

Sahara Maritime IPO Reservation

Retail Shares Offered	50%
Other Shares Offered	50%

 

Company Financial

As of Sep 30, FY23, the company reports total assets of Rs. 964.52 lakhs, revenue of Rs. 2,611.12 lakhs, and a net profit after tax (PAT) of Rs. 120.74 lakhs. 

(Amount in Lakhs)

Period	Sep 30  FY 23	Mar 31  FY 23	Mar 31  FY 22
Total Assets	880.95	964.52	733.57
Total Revenue	531.99	2,611.12	2,104.52
PAT	1.04	120.74	52.35
Net worth	531.58	530.54	365.69
Reserve & Surplus	309.47	308.43	364.69
Total Borrowings	163.81	173.26	11.97

 

Revenue By operations

As of Sep 30, FY23, the company's revenue from operations is Rs. 2,609.95 lakhs, with additional operating income of Rs. 1.17 lakhs, resulting in a total revenue from operations of Rs. 2,611.12 lakhs.

(amount in Lakhs)

Particulars	Sep 30 FY 23	Mar 31  FY 23	Mar 31  FY 22
Revenue from operations	525.49	2609.95	2104.23
Other Operating Income	6.50	1.17	0.29
Total Revenue from operations	531.99	2611.12	2104.52

 

 

 

The Objective of the Issue

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

• Funding capital expenditure for purchasing commercial vehicles and office equipment.

• Meeting working capital requirements.

• Addressing general corporate purposes.

 

Promoters and Management of Sahara Maritime IPO

1. Mr. Sohrab Rustom Sayed

2. Mr. Nadeem Aboobakar Hira.

Pre-issue Promoter Shareholding	100.00%
Post-issue Promoter Shareholding	72.32%

 

Sahara Maritime IPO Lead Managers:

•  Swaraj shares and securities private limited

 

Peers of Sahara Maritime IPO

Sahara Maritime Limited outperforms peers with a high RoNW of 22.76%, a competitive P/E ratio of 15.03, and an EPS of Rs. 5.44, indicating strong financial performance in comparison.

Name of the company	Face value (Rs. per share)	RoNW	P/ E	EPS (Basic)(Rs.)
Sahara Maritime Limited	10.00	22.76	15.03	5.44
Cargotrans Maritime Limited	10.00	0.05	13.81	5.74
AVG Logistics Limited	10.00	9.29	35.55	7.09
Cargosol Logistics Limited	10.00	15.70	10.43	4.79
Amiable Logistics India Limited	10.00	15.70	8.93	8.63
Timescan Logistics (India) Limited	10.00	22.44	14.59	10.65

 

Evaluation

The IPO is priced in the range of Rs 81 per share.

Evaluation of P/E Ratio

- Considering the FY23 EPS of Rs 5.44 from the last year, the resulting P/E ratio is 15.03x.

- Taking into account the weighted EPS of Rs 4.12 for the last three years, the P/E ratio amounts to 19.66x.

    

Comparative Analysis with Listed Peers

-AVG Logistics Limited has a P/E ratio of 35.55x (the highest).

- Amiable Logistics India Limited has a P/E ratio of 8.93x (the lowest).

- The industry's average P/E is 16.66 x.

Consequently, the IPO Price range at a P/E of 15.03x to 19.66x is considered slightly overvalued.

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

1. Diversified Revenue Streams and Customer Base
- Offering a comprehensive range of logistics services makes them a one-stop solution for customers engaged in product exports.

2. Experienced Professional Team
- With a cumulative six decades of expertise in Freight Management, Shipping, Transport, Freight Forwarding, and Logistics, our promoters establish a strong market presence and possess effective decision-making capabilities.

3. Operational Efficiency
- A robust client base and established relationships lead to repeat business, enhancing customer retention.

4. Comprehensive Logistics Solutions
- Specializing in end-to-end tailored logistics solutions, we aim to achieve the highest level of customer satisfaction by meeting specific needs and requirements.

5. Customer-Centric Approach
- Our business is inherently customer-oriented, emphasizing strong relationships and the delivery of high-quality services to ensure enduring customer satisfaction.

IPO's Weaknesses

1. Legal and Litigation Risks: Potential adverse rulings in outstanding litigations against directors and promoters may increase expenses and liabilities.

2. Dependency on Intermediaries: Reliance on third-party intermediaries poses the risk of termination, potential disputes, and disruptions in logistics services.

3. Cost Increases: Significant rises in freight and transportation costs may impact profitability, and the inability to pass on these costs could affect financial results.

4. Global Economic Conditions: Changes in global economic conditions and trade restrictions pose a risk to international trade, affecting the company's business.

5. Corporate Records Discrepancies: Non-compliance with statutory regulations and delays in filing forms may result in penalties, impacting financials and operations.

 

IPO GMP Today

The GMP of Sahara Maritime IPO has not started yet.

Conclusion

Sahara Maritime Limited is gearing up for its IPO from December 18 to December 20, 2023, at Rs. 81 per share. With strong services and financials, the company aims to raise Rs. 6.88 crores. However, risks like legal issues and global economic conditions exist. The P/E ratio suggests a slightly overvalued position. Investors should assess these factors carefully before considering this IPO. Thorough research and evaluation of the company's valuation are crucial for making informed investment decisions.

 

 

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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