Arvind and Company Shipping Agency IPO Detail 2023
Introduction
The Arvind and Company Shipping Agency IPO will open on October 12 and close on October 16, 2023. As per the DRHP filed with SEBI, the company intends to raise approximately ₹ 14.74 crore through this public offering, consisting of 32.76 lakh shares with a face value of ₹ 10 each, which will be issued at a price of ₹ 45 per share.
Arvind and Company Shipping Agency Limited (“the Company”)
Incorporated in 1987, The company is primarily engaged in the chartering business. The chartering activities of the company mainly include the chartering of barges for commercial purposes. As of the date of this draft prospectus, the company owns a total of five (five) barges. The company ventured into chartering barges by purchasing barges “Arcadia Sumeru” in FY 2021, “KB-26” and “KB-32” in FY 2022, “KB-28” and “Arcadia Minica” in FY 2023.
The company understands the unique needs of businesses involved in cargo transportation. Its comprehensive barge chartering services encompass a range of options tailored to meet the specific requirements of its customers. Under this segment, its end users are construction companies that often require barges to transport heavy equipment, construction materials, or personnel to and from construction sites located near bodies of water. Barges can be used to transport materials such as sand, gravel, cement, steel, or machinery to support construction projects.
The company derives its revenue primarily from two business verticals, as follows:
- Chartering of Barges: Under this vertical, they charter flat-topped barges to different coastal transporters. The coastal transporters then use the barges to transport their goods or equipment, depending on their requirements. As of May 31, 2023, the company has five (five) barges, for which we have four active work orders, rental agreements, and MOUs.
- Hotel and Hospitality: Under its Hospitality business vertical, its portfolio of hotels consists of 2 hotels, namely “Hotel Millennium Plaza” and “Hotel 999”, situated in Jamnagar City, Gujarat. Both hotels have 72 well-furnished rooms each.
Company Key Metrics
| Earning Per Share (EPS) | ₹ 4.62 per Equity Share |
| ROE | 46.88% |
| ROCE | 37.44% |
| P/E (x) | 9.74 |
| Return on Net Worth (RoNW) | 46.88% |
Objects of the Issue,
- Funding Capital Expenditure of the Company
- General Corporate Purpose
- To meet Public Issue Expenses
Financial Highlights (Restated)
| Particulars | FY 2022-23 | FY 2021-22 | FY 2020-21 |
|---|---|---|---|
| Net Worth | 914.05 | 566.92 | 467.61 |
| Total Assets | 3,381.18 | 1,860.94 | 578.46 |
| Reserve & Surplus | 913.05 | 565.92 | 466.61 |
| Total Borrowings | 2,232.21 | 1,221.04 | 105.84 |
| Total Revenue | 841.10 | 331.44 | 52.51 |
| Profit After Tax | 347.12 | 100.28 | 23.75 |
Arvind and Company Shipping Agency IPO details
As per the DRHP filed with SEBI, 32.76 lakh shares will be offered as a fresh issue in the NSE SME segment. The face value of the shares is ₹ 10. The market maker would receive 1.68 lakh shares of the offering. While Beeline Capital Advisors Pvt Ltd will be the lead manager for the IPO, Skyline Financial Services Private Ltd will be the registrar. It will be a Fixed Price Issue IPO, so the price at which the securities are offered or allotted is known in advance to the investor.
| Issue Type | Fixed Price Issue IPO |
| IPO Price | ₹ 45 per share |
| Face Value | ₹ 10 per share |
| Market Lot | 3,000 Shares |
| Issue Size | 3,276,000 shares (aggregating up to ₹ 14.74 crores) |
| Fresh Issue | 3,276,000 shares (aggregating up to ₹ 14.74 crores) |
| Listing At | NSE SME |
Market Maker detail
| Market maker | Spread X Securities |
| Market maker portion | 168,000 shares |
Shareholding Pattern
| Shareholding pre-issue | 8,861,800 |
| Shareholding post issue | 12,137,800 |
IPO Reservation
| Categories | No. of shares offered |
|---|---|
| Retail shares offered | 50% of the net issue |
| Retail shares offered | 50% of the net issue |
Arvind and Company Shipping Agency IPO GMP
GMP, or grey market premium, is available on this page. The IPO GMP is updated on a day-to-day basis during the running period of the IPO, due to which the GMP rates fluctuate and stabilise after some time. GMP rates are not 100% guaranteed. Please click here for GMP details.
Arvind and Company Shipping Agency IPO Tentative Dates
The issue opens for subscription on October 12, 2023, and closes for subscription on October 16, 2023 (both days inclusive). The basis of allotment will be finalised on October 19, 2023, and the refunds will be initiated on October 20, 2023. In addition, the demat credits are expected to happen on October 23, 2023, and the stock will be listed on the NSE SME on October 25, 2023. The UPI mandate confirmation cut-off time is 5:00 PM on the issue closing day.
| Opening Date | October 12, 2023 |
| Closing Date | October 16, 2023 |
| Basis of Allotment | October 19, 2023 |
| Initiation of Refunds | October 20, 2023 |
| A credit of shares to Demat A/c | October 23, 2023 |
| Listing Date | October 25, 2023 |
Lot Size of Arvind and Company Shipping Agency IPO
The lot size of the Arvind and Company Shipping Agency IPO is 3,000 shares. A retail-individual investor can apply for up to 1 lot, i.e. 3,000 shares of ₹ 135,000.
| Applications | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Minimum) | 1 | 3,000 | ₹ 135,000 |
| Retail (Maximum) | 1 | 3,000 | ₹ 135,000 |
| HNI (Minimum) | 2 | 6,000 | ₹ 270,000 |
Promoters Holdings
Mr Arvind Kantilal Shah, Mr Vinit Arvind Shah, Mrs Parul Arvind Shah and Mr Chintan Arvind Shah are the promoter of the company.
| Pre-issue Shares Holdings | 100% |
| Post-issue Shares Holdings | 73% |
SWOT Analysis of Arvind and Company Shipping Agency Ltd.
| STRENGTHS | WEAKNESSES |
|---|---|
| 1. High Profit Margin Business 2. Locational Advandages | 1. Geographical Limitations 2. Capital Intensive Industry |
| OPPORTUNITIES | THREATS |
| 1. Increasing Promotion of Sea Trade 2. Growing Industry | 1. Natural Calamities 2. New Competitors |
Miscellaneous Information
| Download Prospectus (PDF) | IPO DRHP IPO RHP |
| Company Contact Information | Arvind and Company Shipping Agency Limited The city points 701 to 702 Fifth Floor, Nr. Town Hall Jamnagar361001 Phone: +919913411144 Email: info@arvindshipping.com Website: https://www.arvindshipping.com/ |
| IPO Registrar | Skyline Financial Services Private Ltd Phone: 02228511022 Email: ipo@skylinerta.com Website: https://www.skylinerta.com/ipo.php |
| IPO Lead Manager(s) | Beeline Capital Advisors Pvt Ltd |
FAQs
The Arvind and Company Shipping Agency IPO price is ₹ 45 per share.
The minimum investment size is one lot for retail investors. One lot of the Arvind and Company Shipping Agency IPO contains 3,000 shares of ₹ 135,000.
The finalisation of the basis of allotment for the Arvind and Company Shipping Agency IPO will be done on October 19, 2023, and the allotted shares will be credited to your demat account by October 23, 2023. Check the Arvind and Company Shipping Agency IPO allotment status.
The Arvind and Company Shipping Agency IPO shares listing date is October 25, 2023.
