India’s 3^rd Largest Seaborne Logistics company by Deadweight Tonnage, Seven Islands Shipping has filed its papers with the regulator for Rs. 600 cr Initial Public Offering. The company had earlier tried to tap the capital markets in 2017. The public issue comprises of a fund raise via fresh issue amounting to Rs 400 cr and an Offer for Sale aggregating up to Rs. 200 cr, by selling shareholders FIH Mauritius Investments aggregating up to Rs 100 cr and promoter selling shareholder, Thomas Wilfred Pinto aggregating up to Rs 85.64 crs and Leena Metylda Pinto aggregating upto 14.35 crs

The portion reserved for Qualified Institutional Buyers will be upto 50% of the offer, Non-Institutional Investors to have upto 15% of the portion reserved while upto 35% will be reserved for the Retail Investors.

The Net Proceeds raised from the fresh issue are to be utilized to acquire 1 Very Large Crude Carrier vessel and 1 Medium Range Vessel from the secondary market at an estimated expense of Rs 352.43 crs.

The company started its operations in 2003 with 1 Vessel and currently has 20 Indian flagged and Indian Owned Liquid Cargo Vessels with a total DWT capacity of 1,105,682 MT which across small, medium and long range vessels cater to transport of products like white oils, black oils, lube oil and liquid chemicals. Over the last 18 years the company has acquired 40 vessels and sold 20 vessels, it typically acquires pre owned vessels depending for the demand for a vessel in the segment it operates in.

As per the CRISIL Report, stated in its DRHP, in FY20 Seven Island Shipping held a significant market share in the Indian time charters for crude oil imports and it has been amongst the few shipping companies who have delivered profits over the last 3 fiscals and also have been so since the first year of its operations. It intends to focus on time charter arrangements considering it provides more stability, predictability and certainty of revenues.

Between FY18-FY20, the revenue from contracts and EBITA grew at a CAGR of 31.3% and 14% respectively and its Return on Average Equity and EBITA margin is amongst the highest in the seaborne logistics industry. JM Financial Limited and IIFL Securities Ltd are the BRLMS to the Issue.