Shreeji Shipping Global
- Shreeji Shipping Global is coming out with a 100% book building; initial public offering (IPO) of 1,62,98,000 shares of Rs 10 each in a price band Rs 240-252 per equity share.
- Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
- The issue will open for subscription on August 19, 2025 and will close on August 21, 2025.
- The shares will be listed on BSE as well as NSE.
- The face value of the share is Rs 10 and is priced 24.00 times of its face value on the lower side and 25.20 times on the higher side.
- Book running lead managers to the issue are Beeline Capital Advisor and Elara Capital (India).
- Compliance Officer for the issue is Archanaba Krunalsinh Gohil.
Profile of the company
Shreeji Shipping Global provides shipping and logistic solution for dry bulk cargo at various Ports and Jetties at India and Sri Lanka. As of March 31, 2025, the company has fleet of more than 80 vessels (consisting of barges, mini bulk carriers (MBCs), tug boats and floating cranes) and more than 370 earthmoving equipment (consisting of material handling machines, excavators, pay loaders, tippers including trailers, tankers and other vehicles) in services of its clients. It has a legacy of more than three decades in the shipping and logistic industry with prominent experience in cargo handling, transportation, fleet chartering and equipment rentals and other ancillary services.
The company offers comprehensive shipping and logistic solutions for dry bulk cargo, including cargo handling and transportation services. Under its cargo handling segment, it provides STS (Ship to Ship) Lighterage, Stevedoring and other port services including cargo management services. Further, as a part of logistic supply chain, it also provides transportation services for dry bulk cargo including port to premise drop-off and vice versa.
The company’s prolong experience in the shipping and logistic industry and wide network of transportation and distribution model helps it to deliver its solutions to customers engaged across various industries. It primarily caters to its customers in various sectors including Oil and Gas, Energy and Power, Fast Moving Consumer Goods (FMCG), Coal and Metal Industry. Its complete integrated end to end shipping and logistic services provides its customers with a preferable option of single-window solutions thereby negating the need to approach multiple service providers at different levels in the chain of shipping and logistic services. Further, its integrated service model provides it with greater business opportunities from its customers involving wide range of services, contributing to its revenue and profitability.
Proceed is being used for:
- Acquisition of Dry Bulk Carriers in Supramax category in the secondary market (Acquisition of Vessels)
- Pre-payment/ re-payment, in part or full, of certain outstanding borrowings availed by the company
- General corporate purposes
Industry Overview
Logistic industry is a backbone of the economy, providing efficient and cost-effective transportation of good from the point of origin to that of consumption and a critical component to support economic growth. The sector provides livelihood to over 22 million people and improving the sector would have a cascading effect on the country's exports growth. Growth in volume of freight movement from major manufacturing segments such as cements, metals, retail, auto, textiles, pharma, and consumer goods, determine growth of logistics services. Traditionally, purview of logistics services meant inclusion of transportation only. However, with increased global trade and movement of goods across the world, it has evolved to integrate several functions in to one. These include fleet logistic operation, storage, and warehousing (CWC, SWC, CFD, IFS, Logistics parks), and other value-added services like Packaging, Labelling, and assembling; Express Service; Tracking and tracing, amongst other. However, transportation accounts for a major part of logistics services.
The boom in e-commerce has led to increased demand for efficient logistics solutions, particularly in last-mile delivery and rural expansion. This trend opens substantial investment opportunities in warehousing, transportation, and technology-driven solutions. Government initiatives and major infrastructure projects such as Bharatmala and Sabarimala, aim to streamline operations and improve connectivity. Technological advancements, including IoT, AI, blockchain, and automation technologies such as drones and driverless vehicles, are revolutionizing logistics operations by enhancing efficiency and reducing costs. India's logistics market is estimated to have valued at USD 317 Bn in 2024. The sector contributes 5% to India's GDP and employs approximately 22 Mn people, underscoring its significant role in the national economy.
Meanwhile, the Indian port sector is on a robust growth trajectory, underpinned by the nation's burgeoning economy, rising industrialization, and government initiatives to enhance trade facilitation. The substantial growth from 1,540 MMT in FY24 to 2,849 MMT by FY30 is projected, implying a CAGR of 10.8%. This robust growth signifies a positive outlook for the sector and its pivotal role in India's economic development. Several factors are propelling the growth in cargo handled volume at Indian ports. Firstly, the government's emphasis on infrastructure development, including port modernization and expansion, is enhancing port capacity and efficiency. Secondly, the 'Make in India' initiative is stimulating domestic manufacturing and exports, leading to increased cargo movement. Thirdly, the growing e-commerce sector is driving demand for efficient logistics and port services. Lastly, India's strategic geographic location as a trade and transit hub is attracting significant cargo volumes.
Pros and strengths
Prominent player in integrated shipping and logistic service provider in India: The company provides shipping and logistic solution for dry bulk cargo at various ports and jetties in India and Sri Lanka. As of March 31, 2025, it has fleet of more than 80 vessels (consisting of barges, mini bulk carriers (MBCs), tug boats and floating cranes) and more than 370 earthmoving equipment (consisting of material handling machines, excavators, pay loaders, tippers including trailers, tankers and other vehicles) in services of its clients. It has a legacy of more than three decades in the shipping and logistic industry with prominent experience in cargo handling, transportation, fleet chartering and equipment rentals and other port services. The company is one of the prominent player in integrated shipping and logistic solution provider for dry bulk cargo handling at all-weather and seasonal ports at India and Sri Lanka.
Established cargo handling operations for Dry Bulk Cargo: Its cargo handling business, which is its largest business operation, can be categorised into the following: (i) STS (Ship-to-Ship) Lightering services; (ii) Stevedoring services; and (iii) Other port services including cargo management services. Currently, it operates in both, all-weather ports and seasonal ports in India and Sri Lanka. Though it is actively engaged in the major ports such as Kandla, it primarily operates in non-major ports and jetties ports specifically those ports having major tidal variations and draft restrictions. It handles a large variety of dry bulk cargo including coal, clinker, salt, iron-ore, pet coke, sulphur, limestone and other commodities. For the Fiscal 2025, Fiscal 2024, and Fiscal 2023, it handled cargo of 15.71 MMTs, 13.78 MMTs, and 13.87 MMTs, respectively, as part of its cargo handling business.
Operational capabilities of its own fleet: The company has a fleet of self-propelled barges, mini bulk carriers, motor tugs, and floating cranes to efficiently meet its customer needs. Its in-house logistics capabilities, include material handling machines, excavators, pay loaders, tippers, trailers, and tankers. As of March 31, 2025, it had 94 permanent employees for repair, maintenance, mechanics and engineers to maintain its fleet and equipment. It conducts in-house maintenance and preventive maintenance of its fleet of vessels and earthmoving equipment. It also outsources certain maintenance activities including vehicles and machines covered by warranty.
Long-term institutional customer relationships in key sectors: It primarily caters to the customers in various sectors including Oil and Gas, Energy and Power, Fast Moving Consumer Goods (FMCG), coal and metal industry. The company’s business is conducted on a business-to-business basis. For the Fiscal 2025, 2024, and 2023 it has served 106, 102, 96 customers, respectively. Its long-standing relationships are largely attributable to its integrated services which allow it to cater to its customers’ complex requirements with operational efficiency and cost-effectiveness. While it has diversified customer base across multiple industry verticals including Oil and Gas, Energy and Power, Fast Moving Consumer Goods (FMCG), Coal and Metal Industry, it depends on certain customers that contribute significantly to its revenue from operations.
Risks and concerns
Maximum revenue comes from limited customers: The company derives a significant portion of its revenue from operations from its top 10 customers, with its top 10 customers contributing 64.12%, 68.79%, and 75.87% of its revenue from operations in the Fiscal 2025, Fiscal 2024, and Fiscal 2023 respectively. Loss of any of these customers or a reduction in purchases by any of them could adversely affect its business, results of operations, cash flows and financial condition.
Significant portion of cargo handling operations is conducted through Non-Major Ports: The company’s significant portion of cargo handling operations is conducted through Non-Major Ports, accounting for 13.09 MMTs, 11.32 MMTs and 11.03 MMTs out of total volumes of 15.71 MMTs, 13.78 MMTs and 13.87 MMTs, for Fiscal Years 2025, 2024 and 2023, respectively. Any adverse changes in their regulatory, political, or operational environment may impact its business, financial condition, or results of operations.
Business is subject to seasonal fluctuations: The company’s business experiences a significant concentration of revenue in the second half of a fiscal, with a majority portion of its annual revenue generated during this period. Its business is exposed to seasonal fluctuations, particularly due to its operations at seasonal ports such as Magdalla and Hazira, etc. The first half of its fiscal year coincides with the monsoon season, which may result in a slowdown of operations and revenue generation compared to the second half. During the monsoon, operations at certain seasonal ports are suspended, potentially adversely affecting its business operations and financial performance.
Significant competition from domestic and international shipping and logistic players: The global shipping and logistics Industry is characterized by a complex interplay of consolidation and fragmentation. While the top tier is dominated by a handful of large carriers, controlling a significant portion of the market, the industry also comprises a multitude of smaller players catering to niche segments. Entry barriers into the Indian shipping and logistics industry are substantial, primarily due to the large capital investments required for vessel acquisition, port infrastructure, and operational expertise. However, regional players and specialized carriers have carved out niches, adding to the industry’s complexity. Key factors shaping competition in the Indian shipping industry include government policies, infrastructure development, trade volumes, fuel costs, and environmental regulations. Despite challenges, the sector presents opportunities for growth due to India’s strategic positioning in the maritime trade and increasing global trade with developed and emerging countries.
Outlook
Shreeji Shipping Global is a shipping and logistics company focusing on dry-bulk cargo. It primarily focuses on non-major ports and jetties, especially along the west coast of India and Sri Lanka. The company is prominent player in integrated shipping and logistic service provider in India. Also, it has established cargo handling operations for Dry Bulk Cargo. On the concern side, the company derives significant portion of its revenue from operations from its top 10 customers and loss of any of these customers or a reduction in purchases by any of them could adversely affect its business, results of operations, cash flows and financial condition. Moreover, the company faces significant competition from domestic and international shipping and logistic players which may lead to a reduction in its market share, which in turn may adversely affect its business, results of operations, financial condition and cash flows.
The issue has been offering 1,62,98,000 shares in a price band of Rs 240-252 per equity share. The aggregate size of the offer is around Rs 391.15 crore to Rs 410.71 crore based on lower and upper price band respectively. Minimum application is to be made for 58 shares and in multiples thereon, thereafter. On performance front, the company’s revenue from operations decreased by 16.88% to Rs 6,076.13 million in Fiscal 2025 from Rs 7,310.03 million in Fiscal 2024. Moreover, the company’s profit for the year increased by 13.43% to Rs 1,412.37 million in Fiscal 2025 from Rs 1,245.12 million in Fiscal 2024.
As the competition in shipping and logistic solution industry has steadily increased over the past decade, the need of integrated and value-added services to the customers is required in order to optimise costs, improve time management, reduce supply chain complexities and improve quality control and traceability. It intends to work on offering services that enhance customer experience and can be more efficiently adopted by customers, while maintaining its focus on increasing its operating margins by creating operational efficiencies. It provides its customers with value-added services at various stages in the logistics value chain such as cargo handling, customs clearance, storage management, stevedoring, and transportation, equipment rental. Additionally, usage of heavy assets such as reach barges, mini bulk carriers, floating cranes, motor tugs, tippers, material handling machines and excavators facilitates loading, unloading and handling cargo, which improve its end-to-end capabilities.
