Shreeji Shipping Global IPO
The Shreeji Shipping Global IPO, a mainboard IPO, opened for subscription on August 19, 2025, and closed on August 21, 2025. This book-built issue aims to raise ₹410.71 crore through a fresh issue of 1.63 crore equity shares, each with a face value of ₹10. Priced at ₹240–₹252 per share, the IPO will list on the BSE and NSE, with a tentative listing date of August 26, 2025. This article provides a comprehensive review of the Shreeji Shipping Global IPO, including subscription status, grey market premium (GMP), business overview, financials, strengths, risks, and investment considerations for medium to long-term investors.
Key Details of Shreeji Shipping Global IPO
The Shreeji Shipping Global IPO has a lot size of 58 shares, with retail investors requiring a minimum investment of ₹14,616 at the upper price band of ₹252. Retail investors can apply for up to 13 lots (754 shares, ₹190,008), while small high-net-worth individuals (sHNIs) need a minimum of 14 lots (812 shares, ₹204,624) and a maximum of 68 lots (3,944 shares, ₹993,888). Big HNIs must apply for at least 69 lots (4,002 shares, ₹1,008,504). The allocation structure reserves 50% for qualified institutional buyers (QIBs, excluding anchor investors), 15% for non-institutional investors (NIIs), and 35% for retail investors. Anchor investors raised ₹123.2 crore on August 18, 2025, with participation from entities like Bank of India Mutual Fund, Morgan Stanley Asia, and BNP Paribas.
Subscription Status
As of August 21, 2025, the Shreeji Shipping Global IPO was subscribed 6.6 times overall, receiving bids for 7.52 crore shares against the 1.14 crore shares offered, totaling ₹1,895 crore in applications. The breakdown by investor category is as follows:
- QIBs: Subscribed 2.4 times, with 78 lakh share applications against 32 lakh shares offered (₹1,598 crore).
- Big HNIs: Subscribed 9.6 times, with 156 lakh share applications against 16 lakh shares offered (₹394 crore).
- Small HNIs: Subscribed 14.5 times, with 1.18 crore share applications against 8.5 lakh shares offered (₹297 crore).
- Retail: Subscribed 7 times, with 3.99 crore share applications against 57 lakh shares offered (₹1,015 crore).
Due to oversubscription, retail investors applying for multiple lots will likely receive only one lot (58 shares), small HNIs applying for up to 68 lots will receive 14 lots, and big HNIs applying for multiple lots will receive 69 lots. To increase allotment chances, investors can apply through multiple demat accounts held by family or friends, though this is informational guidance, not a recommendation.
Grey Market Premium (GMP) and Listing Expectations
The grey market premium (GMP) for the Shreeji Shipping Global IPO on August 21, 2025, was ₹35, indicating a potential listing price of ₹287 per share, a 13.89% gain over the upper price band of ₹252. This GMP reflects an upward trend, increasing by ₹5 from the previous day, suggesting investor optimism about listing gains. However, GMP is volatile and not a guaranteed indicator of listing performance. Investors should consider fundamentals over GMP for informed decisions.
Business Overview of Shreeji Shipping Global
Incorporated in 1995, Shreeji Shipping Global Limited is a leading provider of integrated shipping and logistics solutions for dry bulk cargo, primarily focusing on non-major ports and jetties along India’s west coast and in Sri Lanka. The company operates across 20+ ports, including Kandla, Navlakhi, Magdalla, Bedi, Dharamtar, and Puttalam (Sri Lanka). Services include cargo handling (ship-to-ship lighterage, stevedoring, port services), transportation, fleet chartering, equipment rentals, and other operational income. As of March 31, 2025, the company owns over 80 vessels (barges, mini bulk carriers, tugboats, floating cranes) and 370+ earthmoving machines (excavators, payloaders, tippers, trailers, tankers), serving clients in oil and gas, energy, FMCG, coal, and metals sectors.
Financial Performance
The financials of Shreeji Shipping Global show a mixed performance:
- FY23: Revenue of ₹827 crore, profit of ₹119 crore.
- FY24: Revenue of ₹736 crore (down 11%), profit of ₹124 crore (up 4%).
- FY25: Revenue of ₹610 crore (down 17%), profit of ₹141 crore (up 13%).
While the top line has declined due to market dynamics, the company has improved profitability through cost control and specialized services, achieving an operating margin of 23–33%. Key metrics include a return on equity (ROE) of 43%, return on capital employed (ROCE) of 28%, debt-to-equity ratio of 0.7, price-to-earnings (P/E) ratio of 26, and price-to-book value of 10.7.
Strengths of Shreeji Shipping Global
The Shreeji Shipping Global IPO benefits from several strengths:
- Established Industry Presence: Over 25 years of experience with long-term contracts, including a 25-year project at Chuperbita-Simlong Opencast and a 15-year floating crane facility at Diamond Harbour, ensuring strong revenue visibility.
- Diverse Service Portfolio: Comprehensive offerings across cargo handling, transportation, and equipment rentals, catering to diverse sectors.
- Strategic Focus on Non-Major Ports: Dominance in India’s west coast and Sri Lanka, with no direct listed competitors, positioning it as a first-mover in the segment.
- Growth Potential: India’s port cargo handling is projected to grow at a 10.8% CAGR from 1,540 million tonnes in 2024 to 2,849 million tonnes by 2030, with Gujarat’s ports expected to grow at 14.6% CAGR, offering significant growth opportunities.
Risks and Challenges
Despite its strengths, the Shreeji Shipping Global IPO carries certain risks:
- Revenue Decline: A consistent drop in top-line revenue (17% from FY24 to FY25) raises concerns about scalability, though profitability has improved.
- High Customer Concentration: 21% of revenue comes from the top customer, and 64% from the top 10 customers, posing a risk if key clients are lost.
- Limited Global Footprint: Operations are primarily confined to India and Sri Lanka, limiting international exposure.
- External Risks: Seasonal and weather-related disruptions, fuel price volatility (exacerbated by geopolitical issues like U.S. tariffs on India due to Russian oil imports), competitive pressures, regulatory changes, and macroeconomic uncertainties could impact performance.
Opportunities and Threats
The Shreeji Shipping Global IPO aligns with favorable industry trends, such as the Indian government’s push for coastal shipping, fleet modernization, and technology adoption. Strategic alliances and large-scale projects enhance growth prospects. However, threats include fuel price volatility, competitive pressures from unlisted players like Shreyas Shipping & Logistics and Adani Ports, and potential regulatory or compliance risks. The absence of listed peers makes direct comparisons challenging but positions Shreeji as a unique investment opportunity post-listing.
Should You Apply for Shreeji Shipping Global IPO?
The Shreeji Shipping Global IPO has garnered positive reviews from brokerages like BP Equities, Canara Bank Securities, and Swastika Investmart, who recommend subscribing for medium to long-term gains due to strong fundamentals and growth potential in India’s port sector. However, analysts like Gaurav Goel from Fynocrat Technologies suggest avoiding it, citing a high P/E ratio of 29x and cyclical risks in the shipping industry, which may limit short-term gains.
For retail investors, the oversubscription (7x in the retail category) means only one lot (58 shares) is likely to be allotted, even for multiple lot applications. Applying through multiple demat accounts may increase allotment chances, but investors should weigh this strategy against costs. The GMP of ₹35 suggests a 14% listing gain, but volatility in the grey market warrants caution. For medium to long-term investors, the company’s strong fundamentals, lack of listed competitors, and alignment with India’s coastal shipping growth make it a compelling choice, despite revenue declines and cyclical risks. Always consult a financial advisor before investing, as IPOs carry market risks.
Conclusion
The Shreeji Shipping Global IPO offers exposure to a niche logistics player with a strong presence in India’s non-major ports and Sri Lanka. With a robust subscription rate, a GMP indicating moderate listing gains, and solid fundamentals, it appeals to investors with a medium to long-term perspective. However, declining revenue, high customer concentration, and external risks like fuel price volatility require careful consideration. Investors should evaluate their risk appetite and consult experts before applying for the Shreeji Shipping Global IPO.