IPO closes on 21 Aug'25
Shreeji Shipping Global Ltd
Minimum Investment
₹ 14,616 / 58 shares
Grey market premium
₹ 30 (12% premium)
Our Verdict:
Avoid
- Shreeji Shipping Global Ltd (SSGL), a leading integrated shipping and logistics provider in India, demonstrates strong profitability metrics. However, its revenue trajectory is weak, having declined for the past two years.
- Earnings growth has largely stemmed from cost optimization rather than sustainable revenue expansion, casting doubt on the scalability of its business model in a cyclical and highly competitive industry.
- While client relationships are sticky, high concentration risk limits revenue visibility and resilience.
- From a valuation perspective, the IPO appears fully priced at 26x FY25 earnings.
- In a low-differentiation industry with intense competition, SSGL’s growth challenges and full valuations leave little scope for meaningful upside.
About the company
Founded in
14 Jun'95
Managing director
Ashokkumar Lal
- SSGL is a leading provider of shipping and logistics solutions for dry bulk cargo across various ports and jetties in India and Sri Lanka. As of March 31, 2025, it operates a fleet of over 80 vessels and more than 370 earthmoving equipment, serving a diverse set of clients.
- With a legacy of over three decades in the shipping and logistics industry, SSGL has extensive expertise in cargo handling, transportation, fleet chartering, equipment rentals and related ancillary services. By March 31, 2025, the firm had extended its services to more than 20 ports and jetties, handling a total cargo volume of 15.71 MMTs during FY25.
STRENGTHS
- Improving Profitability: While revenue has declined in recent years, profitability has strengthened due to disciplined cost management and focused service offerings. Between FY23–FY25, EBITDA grew at a CAGR of 2%, while net profit expanded at a CAGR of 9%.
- Solid Return Ratios: SSGL demonstrates strong operational efficiency with a with a Return on Equity (RoE) of 42.91% and a Return on Capital Employed (RoCE) of 28.09% in FY25.
- Expanding Margins: Profitability metrics have consistently improved, with EBITDA margin rising to 33.03% and net profit margin advancing to 23.24% in FY25.
- Sticky Customer Relationships: SSGL enjoys long-term institutional partnerships in core sectors. As of March 31, 2025, 8 of its top 10 customers had relationships exceeding 5 years. Revenue concentration from existing customers was strong, contributing 92.21% in FY25.
RISK FACTORS
- Revenue Decline: Operating revenue has fallen consistently over the last two years, declining from Rs 826.99 crore in FY23 to Rs 607.61 crore in FY25, reflecting business headwinds.
- Client Concentration: In FY25, 64.12% of revenue was generated from the top 10 customers, with the largest contributing 20.86%. A loss or scale-down of orders from any major client could significantly impact financial performance.
- High Attrition: SSGL reported an attrition rate of 37.08% in FY25, highlighting challenges in employee retention and the potential risk to service quality and operational continuity.
- Intense Competition: SSGL faces stiff competition from both domestic and international shipping and logistics players, which may pressure margins and market share. Additionally, the business remains exposed to risks inherent in the logistics industry such as regulatory changes, operational disruptions and cost escalations.
- Sectoral Dependence: Revenues are heavily reliant on cyclical industries—Oil & Gas, Energy & Power and Coal—which contributed 54%, 49.5% and 46% of revenue respectively over the last three years. This exposes SSGL to commodity price volatility, regulatory risks and demand fluctuations.
- Contingent Liabilities: As of March 31, 2025, contingent liabilities stood at ~Rs 458 crore. If these materialise, they could adversely impact the firm’s financial position.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 410.71 crore
Fresh Issue
₹ 410.71 crore
OFS
₹ -
Price range
₹ 240 - 252
Lot size
58 shares
Issue Objective
The net proceeds from the fresh issue are proposed to be utilized for:
- Acquisition of Dry Bulk Carriers in the Supramax category from the secondary market;
- Prepayment and/or repayment of certain outstanding borrowings of the company; and
- General corporate purposes.
Dates
Bidding open
19 Aug'25
Bidding close
21 Aug'25
Allotment date
22 Aug'25
Refund date
25 Aug'25
Listing
26 Aug'25
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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