Sadhav Shipping IPO - Review & Fundamental Analysis
English

Sadhav Shipping IPO – Apply or Not?

Sadhav Shipping IPO consists of a fresh issue of 40,18,800 shares worth INR 38.18 crores. The company seeks funds for loan repayment, vessel purchase, working capital, and corporate expenses.

Sadhav Shipping SME IPO – Important Details 

Sadhav Shipping IPO DateFebruary 23, 2024 to February 27, 2024
Sadhav Shipping IPO Listing DateMarch 1, 2024
Sadhav Shipping IPO PriceINR 95 per share
Sadhav Shipping IPO Lot Size1200 Shares
Sadhav Shipping IPO Total Issue SizeINR 38.18 crores
Sadhav Shipping IPO Basis of AllotmentFebruary 28, 2024
Sadhav Shipping IPO Initiation of RefundsFebruary 29, 2024
Sadhav Shipping IPO Credit of Shares to DematFebruary 29, 2024
Sadhav Shipping IPO Issue TypeFixed Price Issue
Sadhav Shipping IPO Listing AtNSE SME

Sadhav Shipping Ltd IPO – Company Profile

Sadhav Shipping Limited, founded in 1996 by Kamal Kant Choudhury, operates 24 vessels, offering marine services and logistics in India. Choudhury, a Master Mariner, aims to efficiently serve ports and maritime sectors. 

Under Mr. Choudhury’s leadership, SSL expanded shipping and coastal logistics services, serving leading clients like ONGC, Mumbai & Pradip Port Authorities, BARC, SCI, JSW Ports, and others, fostering a solid customer base. 

They excel in offshore logistics, port services, and oil spill response with a modern fleet and dedicated crew. Pioneering India’s first Tier 1 Oil Spill Response Facility, operating in major ports, ensuring sustainable growth. 

Sadhav Shipping IPO – Fundamental Analysis 

Sadhav Shipping Ltd, a prospective IPO candidate, has showcased consistent revenue growth, improved profitability, and enhanced efficiency. Increasing EPS and RoNW present potential investment opportunities, pending thorough analysis.

Revenue Growth: 

The company has shown consistent revenue growth over the three years, from ₹6,057.02 lakhs in 2021 to ₹7,780.84 lakhs in 2023. This indicates a positive trend in the company’s sales.

Profitability: 

The Profit and Loss After Tax (PAT) has fluctuated, but there’s a notable increase from ₹330.77 lakhs in 2021 to ₹775.44 lakhs in 2023. This suggests improving profitability over time.

Expenses: 

While expenses have also increased over the years, the growth rate is slower than revenue, which is a positive sign. It shows the company’s ability to manage costs efficiently.

Return on Net Worth (RoNW): 

RoNW is an important metric to assess how effectively the company utilizes its equity to generate profits. There is a significant improvement in RoNW from 10.32% in 2021 to 18.94% in 2023, indicating better efficiency in generating profits relative to shareholders’ equity.

Earnings Per Share (EPS): 

Diluted EPS has grown, from ₹3.20 in 2021 to ₹7.50 in 2023. Higher EPS reflects increased profitability on a per-share basis.

Total Assets and Liabilities: 

Both total assets and liabilities have increased substantially over the years, indicating company growth. However, assessing whether the increase in liabilities is manageable and whether it’s being used effectively to generate returns is essential.

Net Asset Value (NAV) per Equity Share: 

NAV per share provides insight into the company’s intrinsic value. While the figure is not provided for 2021 and 2022, it’s given as ₹39.62 in 2023, which indicates the value of each share if the company were to be liquidated.

Sadhav Shipping Ltd IPO Financial Information 

ParticularAs of 31 March 2021As of 31 March 2022As of 31 March 2023
Revenue (₹ in lakhs)6,057.026,955.337,780.84
Equity (₹ in lakhs)3,205.613,503.514,094.46
Expenses (₹ in lakhs)5,666.016,554.776,901.36
Profit and Loss After Tax (₹ in lakhs)330.77300.93775.44
RoNW (%)10.328.5918.94
Diluted EPS only (₹)3.202.917.50
NAV per Equity Share (₹)39.62
Total Assets (in lakhs)6,117.646,909.4411,628.71
Total Liabilities (in lakhs)2,912.033,405.937,534.25

Sadhav Shipping IPO Peer Comparison

Sadhav Shipping Ltd. stands out with a revenue of ₹7,780.84 lakhs, P/E ratio of 12.67, EPS of ₹7.50, RoNW of 18.94%, and NAV per Equity Share of ₹39.62, showing favorable metrics compared to Seamec Limited and Knowledge Marine.

CompanyRevenue (₹ in lakhs)Face Value per Equity Share (₹)P/E Ratio (Times)EPS (₹)RoNW (%)NAV per Equity Share (Basic) (₹)
Sadhav Shipping Ltd.7780.841012.677.5018.9439.62
Seamec Limited39,902.411074.0616.235.97270.19
Knowledge Marine19,472.441030.951.535.58121.2
Garware Marine Industries Limited122.431044.950.241.4613.72

Sadhav Shipping SME IPO Objective 

The main objective of Sadhav Shipping is to use the loan to repay or prepay certain outstanding borrowings, fund capital expenditure for acquiring additional boats/vessels, and meet additional working capital requirements. 

  1. Repayment / Prepayment, in part or whole, of certain outstanding borrowings availed by the company: The company proposes to utilize an estimated amount of up to INR 8 crores from the Net Proceeds towards prepayment or repayment of all or a portion of borrowings availed by the company, aiming to strengthen finances for expansion, tender eligibility, cost reduction, and growth. 
  1. Part funding of Capital Expenditure to Purchase/Acquire additional Boats/ vessels: The company plans to utilize INR 15.50 crores for acquiring a new Fast Crew Boat for an ONGC Ltd. contract, with the remaining funding sourced from a Bank/FI loan and cash accruals. 
  1. Working Capital Requirements: Efficiently managing procurement processes involves advancing service and spare parts payments, reflecting proactive investment, and ensuring operational preparedness. 
  1. General Corporate Purpose: The Company plans to deploy the balance funds towards the general corporate goals, including strategic initiatives, partnerships, joint ventures and acquisitions, and meeting contingencies. 

Sadhav Shipping Ltd IPO Risks And Challenges 

Sadhav Shipping risk includes legal proceedings diverting management’s focus and impacting financial resources. Operating risks like breakdowns exist despite precautions. Reliance on third-party providers and uncertainties in vessel rental timing pose additional challenges. 

  • Pending legal proceedings across multiple levels may divert management’s focus, time, and financial resources. Adverse judgments could significantly impact business, financial condition, and operational results, posing challenges to stability and performance. 
  • Despite preventive measures, their services face operating risks such as vehicle breakdowns or accidents. While no notable incidents have occurred, future occurrences are possible. Reliance on third-party service providers poses additional operational and financial risks. 
  • Substantial revenue relies on vessel chartering, with potential operational losses from vessel damage. Revenue comes from winning tenders, but non-renewal or termination could idle vessels. Uncertainties in rental timing due to various factors affect operational results. 

Sadhav Shipping Limited IPO – Industry & Market Potential 

Global crude oil prices have recently stabilized due to Saudi Arabia’s decision to cut production, aiming to reverse the downward trend. 

Exports performed well despite global challenges. Slower import growth attributed to reduced crude oil prices and improved expenditure balance. The first-quarter FY2024 data indicates a strengthening Indian economy with low inflation and substantial GST collections.

The Shipping Industry, by nature, is a global industry regulated by various agencies for the safety and security of the ship, crew, and the marine environment. 

Sadhav Shipping Limited IPO – Type of Offer 

Sadhav Shipping will have a fresh issue of 40,18,800 shares worth INR 38.18 crores. The company seeks funds for loan repayment, vessel purchase, working capital, and corporate expenses. 

Sadhav Shipping SME IPO Offer Size

The offer size of Sadhav Shipping is INR 38.18 crores. The company seeks funds for loan repayment, vessel purchase, working capital, and corporate expenses. 

Sadhav Shipping SME IPO Allotment Structure

Sadhav Shipping Limited’s IPO allotment structure includes a category for Retail Individual Investors (RII) with investments below ₹2 lakhs, a category for other investors exceeding ₹2 lakhs, and a reservation of 2,02,800 shares for Market Makers.

· Retail Individual Investors (RII): These individual investors apply for shares with a total value of less than Rs.2 lakhs.

·Other than retail individual investors: Such applications where the value exceeds INR 2 lakhs.

·  Market Maker Reservation: A certain percentage or number of shares is reserved for market makers. The company has set aside 2,02,800 shares for this purpose.

How to apply for a Sadhav Shipping IPO through Alice Blue?

To apply for the Sadhav Shipping IPO through Alice Blue, you would typically follow these steps:

  1. Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
  2. Check for IPO Details: Once your account is active, you can check for the Sadhav Shipping IPO details in the IPO section of the Alice Blue platform.
  3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
  4. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Sadhav Shipping IPO at Alice Blue in just a few clicks!

 Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

 Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How to check Sadhav Shipping IPO Allotment Status on Alice Blue?

 Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue websit