Mumbai-based Seven Islands Shipping has filed its papers with the regulator for Rs 600 crore Initial Public Offering (IPO).

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The public issue comprises of a fundraise via fresh issue amounting to Rs 400 crore and an 'Offer for Sale' aggregating up to Rs 200 crore by selling shareholders FIH Mauritius Investments aggregating up to Rs 100 crore and promoter selling shareholder, Thomas Wilfred Pinto aggregating up to Rs 85.64 crore and Leena Metylda Pinto aggregating up to 14.35 crore, the company said in its 'Draft Red Herring Prospectus' (DRHP).

The portion reserved for 'Qualified Institutional Buyers' will be up to 50 percent of the offer, non-institutional investors will have up to 15 percent of the portion reserved while up to 35 percent will be reserved for the retail investors, it said.

The net proceeds raised from the fresh issue, it added, are to be utilized to acquire 1 very large crude carrier vessel and 1 medium-range vessel from the secondary market at an estimated expense of Rs 352.43 crore.

The company had earlier tried to tap the capital markets in 2017.

As per the CRISIL Report, stated in its DRHP, in FY20 Seven Island Shipping held a significant market share in the Indian time charters for crude oil imports and it has been amongst the few shipping companies who have delivered profits over the last 3 fiscals and also have been so since the first year of its operations. It intends to focus on time charter arrangements considering it provides more stability, predictability and certainty of revenues.

First Published:Feb 16, 2021 4:47 PM IST