The maritime logistics sector is poised for a significant player’s market debut. The Shreeji Shipping Global IPO opens for subscription from August 19th to August 21st, 2025. This highly anticipated offering aims to raise ₹410.71 crores, fueling the company’s next phase of growth. This comprehensive guide provides everything investors need to know – from GMP and financials to risks and expert analysis – to make an informed decision.
1. About IPO Details
Shreeji Shipping Global Limited is entering the capital markets with a fresh issue of equity shares, meaning all proceeds go directly to the company. This IPO presents an opportunity to invest in a niche player focused on dry-bulk cargo logistics along India’s west coast and Sri Lanka.
| IPO Parameter | Details |
|---|---|
| IPO Opening Date | Tuesday, August 19, 2025 |
| IPO Closing Date | Thursday, August 21, 2025 |
| Face Value | ₹10 per share |
| Price Band | ₹240 to ₹252 per share |
| Lot Size | 58 Shares |
| Issue Type | 100% Fresh Issue |
| Total Issue Size | 1,62,98,000 Shares (Aggregating up to ₹410.71 Crores) |
| Listing On | BSE, NSE |
| Cut-off Time for UPI | 5:00 PM on August 21, 2025 |
| Share Holding Pre-IPO | 14,66,20,254 Shares (100% Promoter Held) |
| Share Holding Post-IPO | 16,29,18,254 Shares (Promoters: ~90%, Public: ~10%) |
2. About the IPO Company: Shreeji Shipping Global Ltd.
Established in 1995 and headquartered in Jamnagar, Gujarat, Shreeji Shipping Global has carved a niche as an integrated shipping and logistics provider specializing in dry-bulk cargo. The company strategically operates primarily at non-major ports and jetties, offering crucial services where larger players might be less agile.
Core Business Segments:
- Cargo Handling: Ship-to-Ship (STS) Lighterage, Stevedoring, Cargo Management Services.
- Transportation: Port-to-premise and premise-to-port movement of dry bulk cargo.
- Fleet Chartering & Equipment Rental: Providing barges, tugboats, floating cranes, and a vast fleet of over 370 earthmoving machines (excavators, payloaders, tippers, tankers) on a charter basis.
- Other Operational Income: Includes scrap sales.
Operational Strengths:
- Extensive Network: Services rendered at over 20 ports/jetties including Kandla, Navlakhi, Magdalla, Bhavnagar, Bedi, Dharmatar (India), and Puttalam (Sri Lanka).
- Significant Asset Base: Operates a fleet exceeding 80 vessels (barges, mini bulk carriers – MBCs, tugboats, floating cranes) and over 370 earthmoving/transport vehicles.
- Diverse Clientele: Serves critical sectors like Oil & Gas, Energy (including Power Plants), FMCG, and Metals.
- Experienced Team: Employs over 1,173 permanent personnel, backed by promoter experience.
Competitive Advantages:
- Niche Focus: Stronghold in non-major ports/jetties on the West Coast & Sri Lanka.
- Integrated Model: Offers end-to-end solutions from cargo handling to transportation.
- Asset Ownership: Control over vessels and equipment enhances service reliability and margins.
- Long-Standing Relationships: Institutional customer base in key industries.
- Proven Financial Track Record: Demonstrated growth in profitability.
3. IPO GMP (Grey Market Premium) & Expected Listing Gain
(Disclaimer: GMP is an unofficial, indicative measure from the grey market and carries significant risk. It is not a guaranteed indicator of listing price.)
- Live GMP (As of [Insert Current Date – e.g., August 18, 2025]): ₹[Insert Latest GMP – e.g., 25 to 35] per share.
- Grey Market Price (GMP): Approximately ₹[e.g., 265 to 287] (Price Band Upper End + GMP).
- Expected Listing Gain: Based on the current GMP range, the indicative listing gain is estimated around 10% to 14% over the upper price band.
Note: GMP fluctuates daily. Check our LIVE IPO GMP Tracker for real-time updates.
Important Note: GMP is highly volatile and can change rapidly based on market sentiment, subscription levels, and overall market conditions closer to the listing date. Investors should monitor updates but not base decisions solely on GMP.
4. IPO Company Financial Data (Restated – ₹ Crores)
Shreeji Shipping demonstrates robust profitability, though revenue faced headwinds in FY25. Debt levels increased, a key focus of the IPO proceeds.
| Financial Parameter | FY 2025 (Mar 31) | FY 2024 (Mar 31) | FY 2023 (Mar 31) | Change (FY25 vs FY24) |
|---|---|---|---|---|
| Total Assets | 758.58 | 610.65 | 600.92 | +24.2% |
| Total Income | 610.45 | 736.17 | 827.33 | -17.1% |
| Profit After Tax (PAT) | 141.24 | 124.51 | 118.89 | +13.4% |
| EBITDA | 200.68 | 197.89 | 188.71 | +1.4% |
| Net Worth | 343.17 | 315.18 | 255.81 | +8.9% |
| Reserves & Surplus | 196.55 | 315.08 | 255.71 | -37.6%* |
| Total Borrowings | 256.47 | 158.88 | 175.45 | +61.4% |
Analysis:
- Profitability Strength: Despite a 17% revenue decline in FY25, PAT grew significantly by 13.4%, showcasing strong cost management and operational efficiency. EBITDA remained stable.
- Asset Growth: Significant 24% growth in Total Assets indicates ongoing capital expenditure and business expansion.
- Debt Concern: Total Borrowings surged by 61.4% in FY25, increasing leverage. Repayment is a key objective of the IPO (₹23 Crores allocated).
- Reserves Fluctuation: The sharp drop in Reserves & Surplus in FY25 warrants attention and should be clarified in the RHP notes (possible dividend payouts or accounting adjustments?).
- Margins: PAT Margins improved impressively to 23.24% in FY25 (from 16.9% in FY24) due to cost control amid lower revenue.
5. IPO Application & Lot Size Details
Investing in the Shreeji Shipping IPO requires applying in lots. Here’s the breakdown:
| Investor Category | Lots | Shares | Amount (₹) @ ₹252 | Amount (₹) @ ₹240 |
|---|---|---|---|---|
| Retail (Min) | 1 | 58 | 14,616 | 13,920 |
| Retail (Max) | 13 | 754 | 190,008 | 180,960 |
| S-HNI (Min) | 14 | 812 | 204,624 | 194,880 |
| S-HNI (Max) | 68 | 3,944 | 993,888 | 946,560 |
| B-HNI (Min) | 69 | 4,002 | 1,008,504 | 960,480 |
Key:
- Retail Investor: Individual investors applying for up to ₹200,000 worth of shares (Max 13 lots).
- S-HNI (Small HNI): Investors applying for more than ₹200,000 but typically up to ₹1,000,000 (14 to 68 lots).
- B-HNI (Big HNI): Investors applying for large amounts (69 lots and above).
6. IPO Reservation Quota
The net issue (after excluding promoter portion) is allocated to different investor categories as mandated by SEBI:
| Investor Category | Percentage of Net Issue | Basis of Allocation |
|---|---|---|
| Qualified Institutional Buyers (QIB) | Not more than 50% | Anchor Investors: Portion allocated ahead of opening (see Section 11). Non-Anchor: Balance for QIBs. |
| Non-Institutional Investors (NII) | Not less than 15% | Includes corporates, trusts, and individuals investing >₹200,000. Further split: >₹2 Lakh to ₹10 Lakh: ~1/3rd of NII Quota. >₹10 Lakh: ~2/3rd of NII Quota. |
| Retail Individual Investors (RII) | Not less than 35% | Individuals applying for ≤₹200,000. Minimum 1 lot. |
7. IPO Promoter Holding Details
The promoters, Ashokkumar Haridas Lal and Jitendra Haridas Lal, currently hold 100% of the pre-issue capital.
- Pre-IPO Promoter Holding: 100% (14,66,20,254 shares)
- Post-IPO Promoter Holding: Approximately 90% (14,66,20,254 shares out of 16,29,18,254 shares)
- Public Shareholding Post-IPO: Approximately 10% (1,62,98,000 shares)
The IPO results in a 10% dilution of promoter ownership.
8. IPO Objective of the Issue
The company intends to utilize the net proceeds raised from the fresh issue for the following purposes:
| S.No. | Object of the Issue | Amount (₹ Crores) |
|---|---|---|
| 1 | Acquisition of Dry Bulk Carriers (Supramax category) in the secondary market | 251.18 |
| 2 | Pre-payment / Repayment (part or full) of certain outstanding borrowings | 23.00 |
| 3 | General Corporate Purposes | Balance Proceeds |
Analysis:
- Fleet Expansion (Primary Use): Investing ₹251 Cr in Supramax vessels (larger than their current MBCs) significantly enhances cargo capacity, efficiency, and market reach, potentially driving future revenue growth. Supramax vessels are workhorses in global dry bulk trade.
- Debt Reduction: Allocating ₹23 Cr towards debt repayment will improve the company’s financial health by reducing interest costs and leverage (Debt/Equity ratio), making the balance sheet stronger. Addresses the FY25 debt surge.
- General Corporate Purposes: Provides operational flexibility for working capital needs and other strategic initiatives.
9. IPO Timeline (Tentative Schedule)
Mark your calendars for these critical dates:
| Event | Tentative Date | Day |
|---|---|---|
| IPO Open Date | August 19, 2025 | Tuesday |
| IPO Close Date | August 21, 2025 | Thursday |
| Basis of Allotment Finalization | August 22, 2025 | Friday |
| Initiation of Refunds | August 25, 2025 | Monday |
| Credit of Shares to Demat | August 25, 2025 | Monday |
| Listing Date | August 26, 2025 | Tuesday |
Investment Limits:
- Retail: Min ₹13,920 (1 Lot), Max ₹190,008 (13 Lots)
- HNI (NII): Min ₹204,624 (14 Lots), No Upper Limit. Effectively split into S-HNI (up to ~₹1M) and B-HNI (>₹1M).
10. IPO Investor Category Reservations
This section details the split within the main categories (QIB, NII, RII) mentioned in Section 6.
- Within QIB: A portion is reserved for Anchor Investors who invest a day before the IPO opens, based on formal commitments. The rest is for other QIBs (Mutual Funds, FIIs, Banks, etc.).
- Within NII: Approximately 1/3rd of the NII quota is reserved for applications between ₹2 Lakh and ₹10 Lakh, and 2/3rd for applications above ₹10 Lakh.
- Within RII: No sub-categories. All applications up to ₹2 Lakh compete within the 35% RII quota. Minimum application is 1 lot (58 shares).
11. IPO Anchor Investor Details
- Process: Anchor investors are invited one working day before the IPO opens (i.e., August 18, 2025). They commit to buying shares at a fixed price (usually the upper end of the band) in exchange for guaranteed allotment.
- Significance: Strong anchor participation, especially by reputable institutions (Mutual Funds, FIIs), signals confidence in the company’s prospects and valuation.
- Status: Anchor investor details (names, quantities, amounts) will be disclosed by the evening of August 18, 2025, on the BSE/NSE websites and by the lead managers. Check these sources for the latest info.
12. IPO Key Performance Indicators (KPIs)
These ratios help assess the company’s operational efficiency, profitability, and valuation:
| KPI | Value (As of Mar 31, 2025) | Interpretation |
|---|---|---|
| Return on Equity (ROE/RoNW) | 42.91% | Exceptionally high, indicates very efficient use of shareholder capital. |
| Return on Capital Employed (ROCE) | 28.09% | Strong, indicates efficient use of overall capital (equity + debt). |
| Debt to Equity (D/E) | 0.75 | Moderate leverage. IPO repayment (Obj. 2) will reduce this. |
| PAT Margin | 23.24% | Very healthy profitability on sales. |
| EBITDA Margin | 33.03% | Strong operational profitability before interest, tax, depreciation. |
| Book Value per Share (Pre-IPO) | ₹23.41 (343.17 Cr / 14.66 Cr Sh) | Value of equity per share on the balance sheet. |
| Book Value per Share (Post-IPO) | ₹21.07 (Est.) | Dilution from fresh issue lowers BVPS. |
| EPS (Pre-IPO) (₹) | 9.63 (141.24 Cr PAT / 14.66 Cr Sh) | Earnings per share based on FY25 PAT. |
| EPS (Post-IPO) (₹) | 8.67 (141.24 Cr PAT / 16.29 Cr Sh) | Dilution lowers EPS. |
| P/E Ratio (Pre-IPO) | 26.16x (Price: ₹252 / EPS Pre: ₹9.63) | Valuation multiple based on current earnings. |
| P/E Ratio (Post-IPO) | 29.07x (Price: ₹252 / EPS Post: ₹8.67) | Higher P/E post-issue due to earnings dilution. |
| Market Cap (Post-IPO) | ₹4,105.54 Cr (16.29 Cr Sh * ₹252) | Total market value of the company post-listing. |
Valuation Note: A Post-IPO P/E of ~29x is relatively high for the shipping/logistics sector. Justification hinges on strong growth prospects post-Supramax acquisition and sustained high margins.
13. IPO Risk Factors
Investing involves risks. Key risks outlined in the RHP include:
- Business & Operational Risks:
- Dependence on the Indian coastline and specific ports/jetties.
- Vulnerability to fluctuations in charter hire rates and vessel/equipment utilization.
- High working capital requirements.
- Intense competition in the logistics sector.
- Performance linked to the economic health of client sectors (O&G, Power, Metals, FMCG).
- Risks associated with owning/operating vessels and equipment (accidents, breakdowns, environmental).
- Dependence on key personnel and skilled workforce.
- Industry & Regulatory Risks:
- Cyclicality of the shipping industry.
- Changes in environmental regulations (IMO standards) increasing compliance costs.
- Regulatory changes affecting port operations, tariffs, or coastal shipping policies.
- Geopolitical risks affecting trade routes (e.g., Red Sea disruptions).
- Financial Risks:
- Significant debt levels (though being addressed via IPO).
- Fluctuations in foreign exchange rates (if any overseas costs/revenues).
- Interest rate hikes increasing borrowing costs.
- Ability to achieve planned growth and profitability post-IPO.
- IPO Specific Risks:
- No prior market price, valuation determined through book-building.
- Post-listing price volatility.
14. IPO Company Contact Details
Shreeji Shipping Global Limited
Shreeji House,
Town Hall Circle,
Kalavad, Jamnagar – 361001,
Gujarat, India.
Phone: +91 288 2553331
Email: info@shreejishipping.in
Website: https://shreejishipping.in/
15. IPO Registrar Details
The registrar handles application processing, allotment, refunds, and demat credit.
Bigshare Services Pvt Ltd
Phone: +91-22-6263 8200
Email: ipo@bigshareonline.com
Website: https://ipo.bigshareonline.com/IPO_Status.html
(Check this link for application status post-close)
16. IPO Recommendation: Subscribe or Not?
(This is not personalized investment advice. Consult a SEBI-registered advisor.)
Analysis:
- Strengths (Pros):
- Niche Market Leader: Strong position in dry bulk logistics at non-major ports.
- Asset-Rich Model: Owns a significant fleet of vessels and equipment.
- Impressive Profitability: High PAT and EBITDA margins, efficient operations.
- Strong ROE/ROCE: Exceptional returns on capital employed.
- Clear Growth Objective: Supramax acquisition targets capacity and efficiency gains.
- Debt Reduction: Part proceeds address the increased leverage seen in FY25.
- Concerns (Cons):
- High Valuation: Post-IPO P/E of ~29x is demanding for the sector; requires flawless execution of growth plans.
- FY25 Revenue Decline: Needs monitoring – was it a temporary blip or a trend?
- Sector Cyclicality: Shipping/logistics is inherently volatile.
- Debt Levels: While being reduced, leverage remains a factor to watch.
- Concentrated Operations: Geographically focused on the West Coast/Sri Lanka.
Recommendation Summary:
Shreeji Shipping presents a compelling case as a profitable player in a vital logistics segment with a clear expansion plan. However, the premium valuation (P/E ~29x) is a significant hurdle. Investors with a moderate to high-risk appetite and a belief in the company’s ability to execute its Supramax strategy and maintain high margins post-expansion might consider a SUBSCRIBE rating, potentially for the long term. Conservative investors may prefer to WAIT and observe post-listing performance and the company’s execution over the next few quarters. The GMP indicating a potential 10-14% listing gain offers a short-term opportunity, but this is speculative.
17. IPO Allotment and Refunds
- Allotment Process: Based on demand, proportionate basis within categories (RII, NII, QIB). Retail applications often face oversubscription; allotment can be lottery-based for RII if oversubscribed.
- Refund Timelines: Unsuccessful applicants will receive refunds initiated by Monday, August 25, 2025. The mode depends:
- ASBA/Blocked Amount: The block in your bank account will simply be released.
- Non-ASBA/Cheque Payment: Refund cheques will be dispatched or electronic refunds processed.
- Payment Methods: Primarily through ASBA (Application Supported by Blocked Amount) via net banking or trading accounts. Physical applications with cheques are possible but less common.
- Actions After Allotment:
- Hold: If you believe in the long-term growth story and fundamentals.
- Sell on Listing: To book profits if listing gains meet your target (especially if driven by high GMP). Consider partial profit booking.
- Decision Factors: Assess listing gains vs. long-term potential, overall market conditions, and the company’s post-listing announcements.
18. IPO RHP/DRHP
- DRHP (Draft Red Herring Prospectus): Download DRHP Document
- RHP (Red Herring Prospectus): Download RHP Document
19. IPO Review: Pros and Cons Summary
| Aspect | Pros (Strengths/Positives) | Cons (Risks/Negatives) |
|---|---|---|
| Business | Niche leader in non-major port dry bulk logistics. | Revenue decline in FY25 needs monitoring. |
| Integrated service model (handling + transport). | Geographically concentrated (West Coast/Sri Lanka). | |
| Large owned fleet (80+ vessels, 370+ machines). | Highly competitive industry. | |
| Financials | Exceptional Profitability (PAT Margin ~23%). | Significant increase in Debt in FY25. |
| Strong ROE (43%) & ROCE (28%). | Reserves & Surplus saw a sharp drop in FY25. | |
| Stable EBITDA Margins (~33%). | ||
| IPO Objectives | Clear use: Fleet expansion (Supramax – Growth). | “General Corporate Purposes” lacks specificity. |
| Debt reduction (Improves financial health). | High valuation demands perfect execution. | |
| Valuation | GMP indicates potential short-term listing gain. | High Post-IPO P/E (29x) – Sector Premium. |
| Market | Plays vital role in Indian coastal logistics. | Shipping sector is inherently cyclical. |
20. Shreeji Shipping Global IPO: FAQs (Frequently Asked Questions)
- Q: What is the Shreeji Shipping Global IPO?
A: It’s an initial public offering where Shreeji Shipping Global Ltd. is issuing new shares (Fresh Issue) worth ₹410.71 Crores to the public for the first time. The price band is ₹240-252 per share. - Q: When does the IPO open and close?
A: Opens: August 19, 2025 (Tuesday). Closes: August 21, 2025 (Thursday). - Q: What is the lot size and minimum investment?
A: The lot size is 58 shares. The minimum investment is ₹13,920 (1 lot at ₹240) or ₹14,616 (1 lot at ₹252). - Q: How can I apply for the IPO?
A: Apply online via your net banking (ASBA section) or through your stock trading app/broker platform using UPI or ASBA. You can also submit physical forms. - Q: When will the allotment be finalized?
A: The tentative allotment date is Friday, August 22, 2025. Check BSE/NSE/Registrar (Bigshare) website or your broker portal that evening or the next day. - Q: When will the shares be credited to my Demat account?
A: Shares will be credited to successful allottees’ Demat accounts by Monday, August 25, 2025. - Q: When is the listing date?
A: The tentative listing date is Tuesday, August 26, 2025 on both BSE and NSE. - Q: What is the current GMP?
A: As of [Insert Date], the GMP is approximately ₹[Insert GMP] (indicating a grey market price of ~₹[Insert Price]). Note: GMP is volatile and unofficial. - Q: What are the key risks?
A: Key risks include high valuation (P/E 29x), the recent surge in debt (though partially being repaid), cyclicality of the shipping industry, dependence on specific ports/sectors, and execution risk of the Supramax acquisition plan. Refer to Section 13 and the RHP. - Q: Should I subscribe?
A: The company has strong fundamentals (high margins, ROE) and a clear growth plan. However, the valuation is demanding. Consider subscribing if you have a moderate-high risk appetite and believe in the long-term growth story post-Supramax expansion. Conservative investors may watch post-listing performance. Consult a financial advisor. (See Section 16 for detailed analysis).
Conclusion
The Shreeji Shipping Global IPO offers a chance to invest in a profitable player in India’s coastal logistics sector with a focused strategy and ambitious expansion plans. While its high margins and return ratios are impressive, the premium valuation (P/E ~29x post-IPO) and the recent debt increase warrant careful consideration. The current GMP suggests potential listing gains, but this is speculative. Investors should thoroughly review the RHP, assess their risk tolerance, consider the long-term growth potential versus the valuation, and make an informed decision. Stay updated on the latest GMP trends and anchor investor participation closer to the opening date.
