Seven Islands Shipping test the waters second time with IPO filing: What is different this time for Rs 600-crore IPO
Seven Islands Shipping test the waters second time with IPO filing: What is different this time for Rs 600-crore IPO

Seaborne Logistics company by Deadweight Tonnage, Seven Islands Shipping, filed its paper for Initial Public Offering (IPO) with the regulator. This is the second stint by the Fairfax-backed company to get listed. The first time the 2003-founded company tried to get listed was in the year 2017.

What are some changes from then (2017) to now (2020):

  • Firstly, in 2017, the company was planning to raise Rs 450 crore through IPO. Now, the company is expected raise Rs 600 crore.

  • In 2017, Seven Islands Shipping IPO comprises fresh issue of shares worth Rs 200 crore, besides a sale of scrips to the tune of Rs 250 crore by private investor Wayzata investment partners and promoters. The promoter shareholders, Thomas Wilfred Pinto and Leena Metylda Pinto were selling shares aggregating upto to Rs 107 crore and Rs 17.9 crore respectively then.

    In 2021, the public issue comprises a fund raise via fresh issue amounting to Rs 400 crore and an offer for sale aggregating up to Rs 200 crore. The offer for sale will consist of shares of selling shareholders FIH Mauritius Investments aggregating up to Rs 100 crore and of promoter shareholders, Thomas Wilfred Pinto and Leena Metylda Pinto aggregating upto to Rs 85.64 crore and Rs 14.35 crore respectively.

  • The net proceeds, in 2017, was expected to buy a very large crude carrier and for other general corporate purposes. Meanwhile, now, the net proceeds from the IPO will be utilised to acquire one very large crude carrier vessel and one medium range vessel from the secondary market at an estimated expense of Rs 352.43 crore.

  • The company’s revenue from operation was at Rs 2,950.40 million and Rs 3,813.91 million in financial year 2016 and 2017 respectively. Meanwhile, in the financial year 2018, 2019 and 2020 was Rs 4,126.30 million, Rs 4,675.82 million and Rs 7,110.26 million respectively.

  • EBITDA of the company increased from Rs 1,642.06 million in financial year 2016 to Rs 2,059.11 million in financial year 2017. EBITDA in fiscal 2018, 2019, and 2020 was Rs 2,092.26 million, Rs 1,672.60 million, and Rs 2,721.28 million respectively. A dip was seen in 2019.

  • Over the last 18 years the company has acquired 40 vessels and sold 20 vessels. Meanwhile, since its inception to fiscal 2017 (15 years), it acquired 18 vessels and sold six vessels. So, in three years’ time, it acquired 22 vessels and sold 16 vessels.

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