Shreeji Shipping Global IPO subscribed 2.13 times on Day 1; GMP at 11%. Should you subscribe?

Shreeji Shipping Global’s Rs 411-crore IPO was subsbcribed 2.13 times on Tuesday, the first day of the bidding process.

The stock is currently commanding a grey market premium (GMP) of around 11% over the issue price of Rs 252, indicating moderate but positive listing sentiment. The IPO will remain open until Thursday, August 21, with the company’s shares set to debut on the BSE on August 26.

Shreeji Shipping IPO GMP Today

The latest GMP for Shreeji Shipping Global IPO stands at Rs 27. Based on the upper end of the price band of Rs 252, the estimated listing price is around Rs 279, translating to an expected gain of approximately 11% per share. The Grey Market Premium (GMP) is an unofficial indicator of investor sentiment and should not be considered a guaranteed listing price. It is subject to change before the listing.

Shreeji Shipping Global subscription Status:

The issue was subscribed to 2.13 times overall. Retail Individual Investors (RIIs) portion was booked 2.12 of their allotted quota, which consists of 57.04 lakh shares. Non-Institutional Investors (NIIs) subscribed to 3.53 of the 24.44 lakh shares reserved for them. Qualified Institutional Buyers (QIBs) had placed 1.09 times the bids, with 32.59 lakh shares earmarked for this category.

Shreeji Shipping Global IPO: Issue Structure, Price Band, and Utilisation of Proceeds

Shreeji Shipping Global’s Rs 410.7-crore IPO is entirely a fresh issue of equity shares, with no offer-for-sale (OFS) component. The price band has been set between Rs 240 and Rs 252 per share. Investors can apply for a minimum of one lot comprising 58 shares, amounting to Rs 14,616 at the upper price band.

The company intends to utilise the IPO proceeds primarily for acquiring supramax dry bulk carriers (Rs 251 crore), repaying existing debt (Rs 23 crore), and meeting general corporate expenses.

Company Overview: Shreeji Shipping Global

Founded in 1995, Shreeji Shipping Global is an integrated shipping and logistics service provider, primarily focused on dry bulk cargo handling at non-major ports across India and Sri Lanka.

The company operates a sizable fleet of over 80 vessels and more than 370 earthmoving machines. It has established long-term partnerships with clients across diverse sectors, including Oil & Gas, Energy, FMCG, Coal, and Metals.

In FY25, Shreeji Shipping reported revenue of Rs 610.5 crore, EBITDA of Rs 200.7 crore, and a net profit of Rs 141.2 crore, delivering a strong EBITDA margin of 33%.

Should you subscribe?

Brokerages tracking the Shreeji Shipping Global IPO highlight the company’s strong market presence, efficient operations, and reasonable valuation as key positives.

Canara Bank Securities notes that Shreeji Shipping’s “niche positioning in dry bulk cargo logistics, robust asset base, and valuation comfort make the IPO attractive,” and has recommended a Subscribe rating for long-term investors.

However, analysts also caution about potential risks, including the company’s reliance on cargo handling volumes, vulnerability to cyclical fluctuations in global trade, and competitive pressures from both domestic and international players.

At the upper end of the price band, the IPO is priced at a P/E ratio of 25.6x based on FY25 earnings. While revenue has seen some contraction in recent years, profitability has improved significantly, with net margins rising to 23% in FY25.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)