Arvind and Company Shipping Agencies Ltd. (ACSAL) launched its Initial Public Offering (IPO) on Thursday with a subscription period closing on Monday. The company’s IPO price band has been fixed at ₹45.
Arvind and Company Shipping IPO Details
ACSAL is offering 3,276,000 equity shares at a fixed price of ₹45 per share, including a premium of ₹35 per share. The primary objective of this offering is to raise ₹14.74 crore, and it does not include an offer for sale (OFS) component, as stated in the Red Herring Prospectus (RHP).
Listing on the NSE SME Emerge Platform
Upon successful completion of the IPO, ACSAL’s shares will be listed on the National Stock Exchange (NSE), specifically on its SME Emerge platform.
Beeline Capital Advisors Private Limited is the lead manager for this offering, and Skyline Financial Services Pvt. Ltd. is the registrar.
Utilisation of Proceeds
The proceeds generated from the IPO will be allocated for multiple purposes, including financing capital expenditures, covering general corporate expenses, and managing the costs associated with the public issue.
In the RHP, ACSAL indicated its intention to use the profits for general corporate objectives, aiming to invest ₹182.05 lakh in the expansion of its business.
The total expenses related to the IPO are estimated to be around ₹190.15 lakhs, encompassing various costs such as underwriting and management fees, printing and distribution expenses, advertising costs, legal fees, and listing costs.
About Arvind and Company Shipping Agencies Ltd.
Founded in 1987, Arvind and Company Shipping Agencies Ltd. (ACSAL) is a company headquartered in Jamnagar, Gujarat. The company primarily specializes in the chartering business, focusing on the rental of barges for commercial purposes.
Additionally, ACSAL has recently diversified into the hospitality sector, operating “Hotel Millennium Plaza” and “Hotel 999” in the vicinity of Jamnagar City.
As of the Prospectus date, ACSAL owns a total of five barges. The company’s expansion into barge chartering included the purchase of “Arcadia Sumeru” in FY 2021, “KB-26” and “KB-32” in FY 2022, and “KB-28” and “Arcadia Minica” in FY 2023. ACSAL’s future plans involve acquiring two more barges, “Arcadia Parshva” and “Ananta,” using the funds generated from the IPO.
Arvind and Company Shipping’s Financial Performance
For the financial year 2022-23, ACSAL reported a total revenue of ₹8.41 crore, with a net profit of ₹3.47 crore and an EBIDTA of ₹6.58 crore. In the preceding financial year (2021-22), the company achieved a total revenue of ₹3.31 crore, a net profit of ₹1.00 crore, and an EBIDTA of ₹1.79 crore.
Furthermore, for the two months ending on May 31, 2023, ACSAL recorded a total revenue of ₹2.39 crore, with an EBIDTA of ₹2.14 crore and a net profit of ₹1.14 crore, underscoring its robust financial performance.
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