Shreeji Shipping Global IPO: Listed 7% Higher, Steady Debut Tests Investor Patience

Shreeji Shipping Global Limited, the dry bulk logistics player, made its Dalal Street debut today with a 7.1% listing gain, opening at ₹270 per share against its IPO price of ₹252. While the IPO was subscribed a remarkable 58.08 times, the listing pop was moderate, reflecting a realistic balance of high demand during bidding and tempered market conditions on debut. The company rides on strong fundamentals like profitability, debt reduction plans, and fleet expansion, but faces challenges such as concentrated revenues, aging ships, and exposure to cyclical freight rates. This blog breaks down its post-listing scenario, strengths, risks, industry trends, and what investors should consider now.

IPO Overview

• IPO Date: August 19 to August 21, 2025
• Total Issue Size: ₹410.71 crore
• Price Band: ₹240 to ₹252 per share
• Lot Size: 58 shares per lot
• Tentative Allotment Date: August 22, 2025
• Listing Date: August 26, 2025 (Tentative). Check the live share price of Shreeji Shipping Global here.
• Subscription Status: Closed at 58 times

How Does Shreeji Shipping Global Generate Revenue?

Shreeji Shipping Global is basically India’s mover for dry bulk cargo - think coal, sand, grain, and metals - hauling goods from ship to shore and beyond. With a fleet of over 80 vessels (barges, tugs), plus 370+ hefty earthmovers, it helps clients like Reliance and Adani handle, store, and transport large volumes efficiently. About 92% of revenue comes from repeat business, solidifying its role as a go-to logistics partner, especially at India’s booming west coast ports and even in Sri Lanka. The company is now expanding to offer full “end-to-end” logistics, not just isolated transport or lighterage.

Objectives of the IPO

• ₹251.18 crore: Buying Supramax Dry Bulk Carriers (48,000-60,000 DWT), basically, big, mid-life ships that haul major cargo loads, expanding its own shipping arm.
• ₹23 crore: Repaying part of its ₹256.47 crore borrowings, aiming to clean up the balance sheet and lower the company’s debt burden.
• Rest: Day-to-day needs, like working capital or operational upgrades.

Strengths:

• Integrated power player: Runs over 80 vessels and 370+ earthmoving machines—meaning it doesn’t just ship, but handles full logistics end-to-end.
• Profit engine: EBITDA margin at 33% and PAT margin at 23.2% in FY25, solid operational muscle, rare in shipping.
• Debt-service champ: Debt service coverage ratio of 15.49 times (it earns nearly 15.5 times what it owes, showing financial comfort).
• Loyal clients: 8 of their top 10 customers have been with them 5+ years; repeat revenue is the norm, not the exception.
• Growing handling volumes: Cargo handled jumped from 13.87 MMT FY23 to 15.71 MMT FY25, showing a 6.4% CAGR.
• IPO money fuels business, not exit: 100% of funds go to fleet and future, not to early investors cashing out.

Risks:

• Shrinking topline: Revenue dropped 14.3% annually over last two years; ₹827 crore in FY23 to ₹608 crore in FY25.
• High customer concentration: Top customer alone gives 21% of revenue; top 10 bring 64%, losing one or more is a real threat.
• Short-term contracts: Deals can end suddenly, most business isn't tied down for the long haul.
• Old ships, attrition issues: Average barge is 14 years old; employee turnover at a whopping 37% in FY25 can hamper stability.
• Debt, contingents linger: Debt-to-equity at 0.75 post-offer still isn’t low, plus ₹413 crore in guarantees and ₹30 crore in tax disputes could sting in future.
• Industry exposure: If oil, power, or coal slow down, more than half its business could take a hit.

For detailed information, visit Shreeji Shipping Global’s IPO page.

IPO Valuation

P/E Ratio: 25.6 times, a moderate multiple against India’s wider logistics and infrastructure peers, with the edge of higher profitability and a cleaner balance sheet if debt reduction pans out.

Return on capital (ROCE): 28.09%-for every ₹100 invested, it generates nearly ₹28 in operating profit, suggesting efficient asset use.

Debt service comfort: 15.5 times operating income vs. debt commitments, a reassuring cushion.

Disclaimer: The P/E ratio here is calculated using the company’s post-IPO equity and its most recent FY25 net profits at the upper end of the price band.

Who’s Running Shreeji Shipping Global?

Shreeji’s strength rests on family leadership by Ashokkumar Haridas Lal and Jitendra Haridas Lal, each with three decades’ experience in shipping, deeply entrenched in the industry since the mid-1990s. Ashokkumar, the CMD, is not just a corporate captain but also a key figure at the Jamnagar District Cooperative Bank, with a reputation for prudent business moves and sartorial discipline. Jitendra, as Joint MD and fellow bank chairman, brings vital commercial acumen and community connections, having previously led the area’s largest trade associations. The duo’s steady hands built Shreeji’s client relationships and integrated service model, while young CFO Harshida Jayesh Bhanushali (a CA with seven years at the firm) anchors financial rigor.

Industry Outlook

India’s shipping and logistics sector is gathering real speed. Cargo handled at domestic ports is expected to grow at a hefty 10.8% CAGR, nearly doubling from 1,540 MMT in FY24 to 2,849 MMT in FY30. Government policies are pumping fresh energy into logistics via the National Logistics Policy, which aims to slash costs and streamline movement. India’s vast coastline (over 7,500km) means most trade moves by ship, a huge fundamental tailwind. Yet, capital requirements are daunting, and the fortunes of logistics tie closely to volatile core sectors like energy and commodities. For players who build scale and offer integrated solutions, the opportunity is large, but competition and operating risk never sleep.

Analyst View

Shreeji Shipping Global made a steady debut on Dalal Street with a 7.1% listing gain, opening at ₹270 against its IPO price of ₹252. While the pop wasn’t massive compared to the 58x subscription frenzy, it indicates a balanced mix of excitement and cautious optimism among investors.

The fundamentals remain attractive, strong profitability (PAT margin of 23.2% in FY25), a healthy debt service cushion, and sticky long-term client relationships. Plus, the IPO proceeds are going directly into business expansion (buying Supramax carriers) and debt reduction, which adds comfort about future cash flows.

However, investors should weigh the risks too. Revenues have shrunk in recent years, customer concentration remains high, and the average fleet is aging. Shipping is also cyclical; fortunes swing with cargo demand and freight rates.

How to Apply for an IPO on INDmoney?

1. Download the INDmoney app and complete your KYC.
2. Go to INDstocks → IPO, or just search “IPO”.
3. Tap on an IPO from the list of live IPOs.
4. View key details like price band, lot size, and dates.
5. Tap Apply Now and choose the number of lots.
6. Use INDpay UPI for instant mandate tracking.
7. Your funds will be blocked until the share allotment is finalized.

For a seamless application process, visit the INDmoney IPO page.

Disclaimer

Source: Shreeji Shipping Global's RHP. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Please be informed that merely opening a trading and demat account will not guarantee investment in securities in the IPO. Investors are requested to do their own independent research and due diligence before investing in an IPO. Please read the SEBI-prescribed Combined Risk Disclosure Document prior to investing. This post is for general information and awareness purposes only and is nowhere to be considered as advice, recommendation, or solicitation of an offer to buy or sell, or subscribe for securities. INDstocks is acting as a distributor for non-broking products/services such as IPO, Mutual Fund, and Mutual Fund SIP. These are not exchange-traded products. All disputes with respect to the distribution activity would not have access to the Exchange investor redressal forum or the Arbitration mechanism. INDstocks Private Limited (formerly known as INDmoney Private Limited) does not provide any portfolio management services, nor is it an investment adviser. Logos above are the property of respective trademark owners, and by displaying them, INDstocks has no right, title, or interest in them. SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428.