MUMBAI, 5 October, 2017 (GPN) : Seven Islands Shipping Limited filed its Draft Red Herring Prospectus (DRHP)with the market regulator SEBI seeking permission for its Initial Public Offering (IPO).Seven Islands Shipping is the third largest liquid seaborne logistics company in India by deadweight tonnage(Source: CRISIL Research Report).
The IPO comprises of a Fresh Issue up to Rs. 2,000 million and an Offer for Sale aggregating up to Rs. 2,500.00 million Wayzata III Indian Ocean Limited, Thomas Wilfred Pinto and Leena Metylda Pinto.
The equity shares will have a face value of Rs 10 and the price band will be decided in consultation with the Book Running Lead Managers (BRLMs).
The Net Proceeds from the fresh issue will be utilised towards (i) acquisition of a VLCC vessel in the secondary market and (ii) general corporate purposes.
Edelweiss Financial Services Limited is the book running lead managers to the issue and Link Intime India Private Limited is the Registrar.
About Seven Islands Shipping Limited:
Seven Islands Shipping Limited are the third largest liquid seaborne logistics company in India by deadweight tonnage (Source: CRISIL Report). All the vessels owned by the company are registered and flagged in India and operate as Indian owned and flagged vessels. SIS operates primarily along the Indian coast, Arabian Gulf and South-east Asia.
The liquid seaborne logistics business of the company can be classified into crude oil trade and liquid products trade. Crude oil is transported in crude oil vessels classified as Aframax, Suezmax, Very Large Crude Carriers or VLCCs and Ultra Large Crude Carriers or ULCCs (the “crude oil logistics business”). Liquid products like white oils, black oils, lube oil and liquid chemicals are transported in product vessels classified as Small vessels, Medium Range or MR vessels and Long Range or LR vessels (the “oil product logistics business”).
Seven Islands shipping operates in both these categories of business. Company transport crude oil primarily from the Arabian gulf countries to Indian refineries along the Indian coast. Company’s principal customers are Indian Oil Corporation Limited or IOCL, Hindustan Petroleum Corporation Limited or HPCL and Bharat Petroleum Corporation Limited or BPCL. SIS began their operations with only one vessel in Financial Year 2003 and have, over the last 15 years, acquired 18 vessels and sold six vessels.ENDS