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10 Oct 2024
Navigating Growth Waters: Marinetrans India IPO Sets Sail in the Logistics Horizon
Introduction:
Marinetrans India Limited, a prominent player in transport management and freight-related services, recently embarked on a significant journey with its Initial Public Offering (IPO). With a fixed price issue of Rs 10.92 crores, comprising an entirely fresh issue of 42 lakh shares, Marinetrans India IPO garnered substantial attention from investors. This blog takes a closer look at the key details and performance metrics, providing insights into Marinetrans India's maiden voyage in the market.
Key Dates:
| Bidding Period | November 30 to December 5, 2023 |
|---|---|
| Allotment Date | December 6, 2023 |
| Listing Date | December 8, 2023 |
IPO Highlights:
| Issue Size | Price per Share | Lot Size | Minimum Investment |
|---|---|---|---|
| ₹10.92 Crores | ₹26 | 4000 Shares | ₹104,000 for retail investors |
Financial Overview:
| Total Issue Size | Fresh Issue |
|---|---|
| 4,200,000 shares, aggregating up to ₹10.92 Cr | 4,200,000 shares |
Shareholding Structure:
| Pre-Issue Shares | Post-Issue Shares |
|---|---|
| 8,526,000 | 12,726,000 |
Market Maker Segment:
| Nnm Securities | 216,000 shares |
|---|
IPO Management:
| Lead Manager | Registrar | Market Maker |
|---|---|---|
| Swaraj Shares and Securities Private Limited | Skyline Financial Services Private Ltd | Nnm Securities |
Subscription Highlights:
The Marinetrans India IPO witnessed strong subscription figures, reaching an overall subscription of 33.00 times. Noteworthy interest was observed across categories, with Non-Institutional Investors (NII) subscribing 18.05 times, Retail investors showing significant enthusiasm at 47.24 times, and Qualified Institutional Buyers (QIBs) participation.
IPO Journey Timeline:
| IPO Open Date | IPO Close Date | Basis of Allotment | Refunds Initiation | Shares Credited to Demat | Listing Date |
|---|---|---|---|---|---|
| November 30, 2023 | December 5, 2023 | December 6, 2023 | December 7, 2023 | December 7, 2023 | December 8, 2023 |
Lot Size Details:
Investors had the flexibility to bid for a minimum of 4000 shares, with the following investment parameters for retail investors and High Net Worth Individuals (HNIs):
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 4000 | ₹104,000 |
| Retail (Max) | 1 | 4000 | ₹104,000 |
| HNI (Min) | 2 | 8,000 | ₹208,000 |
Marinetrans India IPO Reservation:
The IPO featured a reservation of 4,200,000 shares, allocating portions to Non-Institutional Investors (NII), Retail Individual Investors (RII), and Market Makers.
About Marinetrans India Limited:
Established in 2004, Marinetrans India Limited is a key player providing comprehensive transport management and freight-related services. The company began its journey as a freight forwarder and evolved into offering door-to-door delivery and 3PL services for the logistics industry.
Marinetrans specializes in freight transportation services encompassing both sea and air freight. The company collaborates with various intermediaries to provide additional services, including transportation, multimodal transport, project cargo handling, third-party logistics, and packing/unpacking of items.
Key Financials:
As of May 31, 2023, Marinetrans India Limited displayed a financial snapshot, revealing total assets at ₹2,615.36 Lakhs. While there was a decrease of -26.03% in revenue, and -17.94% in profit after tax (PAT) between the financial years ending March 31, 2023, and March 31, 2022.
| Metric | Values |
|---|---|
| Assets | ₹2,615.36 Lakhs |
| Revenue | ₹1,384.38 Lakhs |
| Profit After Tax | ₹13.91 Lakhs |
| Net Worth | ₹1,617.96 Lakhs |
| Total Borrowing | ₹603.68 Lakhs |
Key Performance Indicators:
- - Market Capitalization: ₹33.09 Crores
- - Return on Equity (ROE): 10.00%
- - Return on Capital Employed (ROCE): 11.29%
- - Debt/Equity: 0.35
- - Return on Net Worth (RoNW): 9.53%
Objects of the Issue:
The funds raised through the IPO are intended for:
- - Funding working capital requirements. - General corporate expenses. - Issue expenses.
Conclusion:
Despite being a prominent third-party logistics service provider, Marinetrans India's IPO has garnered mixed reviews. Industry experts have expressed concerns over the inconsistency in financial performances. The issue, based on its FY24 annualized earnings, has been perceived as being exorbitantly priced. Investors are advised to make informed decisions, considering the long-term prospects of this logistics player. As Marinetrans India makes its mark on the NSE SME platform, it remains to be seen how it navigates the dynamic waters of the logistics and transport industry
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