Shreeji Shipping Global IPO: Should you apply or avoid?
All you need to know about the Shreeji Shipping Global IPO
Summary: Weighing a bid for Shreeji Shipping Global? The dry‑bulk shipping and port‑logistics player is coming with a ₹410–411 crore all‑fresh issue at a ₹240–₹252 price band (Aug 19–21, 2025). Robust return ratios and sticky clients are positives, but revenue has softened and customer concentration/cyclical exposure raise risk. Read the full breakdown before deciding.
What the company does
Shreeji Shipping Global is an integrated shipping & logistics provider focused on dry bulk cargo handling across Indian west‑coast ports and Sri Lanka (Puttalam). It operates 80+ vessels (barges, mini bulk carriers, tugs, floating cranes) and 370+ cargo/earth‑moving machines; FY25 cargo handled: 15.7 MMT. Solutions span mid‑stream unloading, coastal shipping, stevedoring and last‑mile delivery.
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Track record and valuation
FY23–FY25 revenue declined ~14% CAGR, but PAT grew ~9% CAGR on margin gains. Three‑year averages remain strong: ROE ~44%, ROCE ~37%. At the ₹252 upper band, implied P/E ~29x and P/B ~5.4x; peers’ medians are materially lower on both multiples.
Shreeji Shipping Global IPO details
| Item | Detail |
|---|---|
| Issue size | ~₹411 cr (100% fresh issue) |
| Price band | ₹240 – ₹252 per share |
| Bidding window | Aug 19–21, 2025 |
| Listing | BSE, scheduled Aug 26, 2025 (per media) |
| QIB/NII/Retail split | 50% / 15% / 35% (as reported) |
| Use of proceeds | ~₹251 cr for acquiring dry bulk carriers; ~₹23 cr debt repayment; balance for general purposes |
| Grey market colour (unofficial) | GMP indicated around ₹25 (≈10–12%) near opening |
| Anchor | ~₹123 cr raised from anchors pre‑issue |
Post‑IPO snapshot (indicative at upper band)
| Metric | Value |
|---|---|
| Implied market cap | ~₹4,100 cr |
| Implied P/E / P/B | ~29x / ~5.4x |
Financial history
| Key financials (₹ cr) | FY25 | FY24 | FY23 | 2Y CAGR |
|---|---|---|---|---|
| Revenue | 608 | 731 | 827 | −14.3% |
| EBIT | 177 | 173 | 172 | +1.3% |
| PAT | 141 | 125 | 119 | +9.0% |
| Net worth | 343 | 315 | 256 | +15.8% |
| Total debt | 257 | 159 | 176 | +20.9% |
EBIT excludes other income.
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Key ratios
| Ratio | FY25 | FY24 | FY23 | 3Y Avg |
|---|---|---|---|---|
| ROE | 42.9% | 43.6% | 46.5% | 44.3% |
| ROCE | 32.9% | 38.2% | 39.9% | 37.0% |
| EBIT margin | 29.0% | 23.7% | 20.8% | 24.5% |
| Debt/Equity | 0.7 | 0.5 | 0.7 | 0.6 |
The good
- Sticky customer base & repeat revenue: 92%+ income from repeat clients; 100+ customers with many relationships >5 years.
- Integrated assets & capability: Large in‑house fleet and equipment enable end‑to‑end execution and reliability across west‑coast ports + Sri Lanka.
- High returns on capital: Strong ROE/ROCE despite industry cyclicality.
The bad
- Top‑client dependence: Top 10 = 64% of FY25 revenue; single largest at ~20% — elevates concentration risk.
- Cyclical exposure: Significant mix tied to coal, oil & gas, and power; vulnerable to policy and commodity swings.
- Soft revenue trend: FY23–FY25 revenue contraction underscores demand variability even as profits held up.
Where will the IPO money go?
Primary uses: fleet acquisition (~₹251 cr), debt repayment (~₹23 cr), remainder for general corporate purposes.
So, should you apply for the Shreeji Shipping Global IPO?
Balanced view:
- For listing‑gain seekers: Positive GMP signals near‑term interest, but it’s unofficial; treat cautiously.
- For long‑term investors: Compelling ROE/ROCE and integrated logistics platform are positives. Offset by client concentration, sector cyclicality, and recent revenue decline. Prefer measured exposure or wait‑and‑watch for a couple of reported quarters post‑listing to validate growth momentum and capital allocation.
Frequently Asked Questions (FAQs)
1. What is the Shreeji Shipping Global IPO price band?
The Shreeji Shipping Global IPO price band is set at ₹240–₹252 per share. Investors can apply within this range during the subscription window.
2. When does the Shreeji Shipping Global IPO open and close?
The IPO opens on August 19, 2025, and closes on August 21, 2025. The listing date is tentatively set for August 26, 2025 on BSE.
3. What is the Shreeji Shipping Global IPO size?
The issue size is around ₹411 crore, consisting entirely of a fresh issue. No offer for sale is included in this IPO.
4. What will Shreeji Shipping Global use the IPO proceeds for?
Proceeds will mainly fund the acquisition of dry bulk carriers (~₹251 crore), debt repayment (~₹23 crore), and general corporate purposes.
5. Should you apply for the Shreeji Shipping Global IPO?
The IPO offers high ROE/ROCE and a strong fleet-backed logistics model, but risks include client concentration, cyclicality, and recent revenue decline. Investors with long-term conviction in the shipping/logistics story may consider, while cautious investors may prefer to wait for post-listing performance.
Disclaimer :-This is for educational purposes only. Views are from cited sources, not this publication. Investing involves risks, including potential loss of principal. Consult a financial advisor before deciding. Past performance doesn’t guarantee future results.
