Seacoast Shipping Services Limited, a single-window logistics services provider, will resume its agreement with Maria Shipping, Dubai. The deal, originally agreed upon on February 20, 2023, will now take effect from August 15, following negotiations and the completion of a rights issue to meet working capital requirements, the company said.

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The initial contract aimed to establish Seacoast’s Shipping and Logistics Services in Dubai, with an intended start date of April 1, 2023. However, the deal faced temporary suspension due to unforeseen challenges in fulfilling the necessary working capital requirements, it said.

Seacoast Shipping launched a rights issue to secure sufficient working capital. The ongoing rights issue, which opened on July 21, has provided Seacoast Shipping with the necessary resources to proceed with the services outlined in the contract with Maria Shipping.

Manishkumar Shah, Managing Director of Seacoast Shipping, said, "We look forward to commencing our Shipping and Logistics Services in Dubai from August 15 and building a long-term and mutually rewarding business relationship with Maria Shipping.”

The renewed agreement with Maria Shipping is expected to lead to gains for Seacoast Shipping, with an additional projected annual revenue of Rs 100 crore. Considering Seacoast Shipping’s revenue of Rs 429 crore for FY22-23, and leveraging the working capital obtained from the rights issue, the company said it envisions revenue of approximately Rs 800 crore in the current fiscal.

Seacoast Shipping’s rights issue of up to 20,20,05,000 fully paid-up equity shares closed on August 2. The company issued the shares at Rs 2.40 per share in the rights issue.

First Published:Aug 10, 2023 11:37 AM IST