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Seaways Shipping files for IPO; IDFC PE to exit

29 March, 2016

Logistics service and solutions provider Seaways Shipping & Logistics Ltd has filed draft papers with the capital markets regulator Securities and Exchange Board of India for its initial public offering (IPO).

The company plans to raise Rs 80 crore (about $12 million) through a fresh issue of sale, besides an offer-for sale of up to 6.44 million shares by existing shareholders including IDFC Alternatives (IDFC PE).

With this, Seaways Shipping has become the fifth company to file papers with SEBI this year for an IPO.

Here’s a snapshot of the IPO:

  • A fresh issue of shares to raise up to Rs 80 crore (about $12 million) and an offer for sale of up to 6.44 million shares.
  • Bankers: ICICI Securities, IDFC Bank Ltd and Karvy Investment Banking.

Objects of the issue

Of the total Rs 80 crore, the company plans to use Rs 45.48 crore for capital expenditure and Rs 17 crore for repayment/pre-payment in full or in part of certain loans over the next two financial years.

Company

Incorporated in 1989, Seaways Shipping had initially commenced its business in bulk cargo and since then has expanded to provide integrated logistics services.

It has broadly categorised its services into non-vessel operating common carrier; ocean and air freight forwarding; bulk cargo handling; turnkey and integrated logistics solutions; free trade warehousing zone (FTWZ) services and offshore logistics services.

“We intend to expand our FTWZ business nationally to locations such as Mumbai, Visakhapatnam, Mundra, Ennore and Khurja. We currently operate our FTWZ business in Sriperumbudur, Tamil Nadu. We intend to expand our offshore services to regions where oil companies operate in India on high seas,” it said in the prospectus.

As of February 29, 2016, the company had operations in 30 locations in India with 45 offices for its different business verticals. It also has direct operations in Singapore, Malaysia, the UAE, Hong Kong, Bahrain and the US, through its subsidiaries, joint venture or branch offices.

Additionally, Seaways Shipping has presence in 95 countries through strategic partners.

Financials

For the fiscal year ended March 31, 2015, the company clocked total income of Rs 716.48 crore, EBITDA of Rs 51 crore and profit after tax of Rs 29.24 crore.

For the last five financial years, its total income and EBITDA from continuing operations grew at a CAGR of 9.02 per cent and 36.30 per cent, respectively.

Investors

IDFC PE had invested around Rs 120 crore in 2008. It owns a 24 per cent stake in Seaways Shipping. Through the issue, it will completely exit the company.


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Seaways Shipping files for IPO; IDFC PE to exit

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