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28 January 2024

Sahara Maritime IPO: Navigating the Seas of Logistics with Strategic Growth

Introduction:

Sahara Maritime Limited recently set sail on the stock market with its fixed-price Initial Public Offering (IPO), raising a noteworthy Rs 6.88 crores through a fresh issue of 8.5 lakh shares. This blog provides a detailed insight into the Sahara Maritime IPO, covering essential details, subscription statistics, and a closer look at the company's role in providing comprehensive maritime services.

Key Dates:

Bidding Period	Allotment Date	Listing Date
December 18 to December 20, 2023	December 21, 2023	December 26, 2023

IPO Highlights:

Issue Size	Fresh Issue	Price per Share	Lot Size	Minimum Investment
Rs 6.88 Crores	8,49,600 shares	Rs 81 per share	1600 Shares	Rs 129,600

Financial Overview:

Total Issue Size	Shareholding Pre-Issue	Shareholding Post-Issue
8,49,600 shares, aggregating up to Rs 6.88 Crores	2,221,050 shares	3,070,650 shares

Shareholding Structure:

Pre-Issue Shares	Post-Issue Shares
100%	74.97%

IPO Management:

Lead Manager	Registrar	Market Maker
Swaraj Shares and Securities Private Limited	Bigshare Services Pvt Ltd.	Shreni Shares

Subscription Highlights:

The Sahara Maritime IPO garnered a subscription rate of 22.67 times, demonstrating investor confidence in the maritime logistics sector. The Retail Individual Investors (RII) segment played a significant role in driving the subscription figures to commendable levels.

IPO Journey Timeline:

IPO Open Date	IPO Close Date	Basis of Allotment	Refunds Initiation	Shares Credited to Demat	Listing Date
December 18, 2023	December 20, 2023	December 21, 2023	December 22, 2023	December 22, 2023	December 26, 2023

Market Maker Segment:

Prabhat Financial Services	193,000 shares

Lot Size Details:

Investors had the flexibility to bid for a minimum of 1600 shares, with retail investors having an investment range from 1 lot to multiples thereof.

Application	Lots	Shares	Amount
Retail (Min)	1	1600	Rs 129,600
Retail (Max)	1	1600	Rs 129,600
HNI (Min)	2	3,200	Rs 259,200

Sahara Maritime IPO Reservation:

The IPO featured strategically allocated reserved portions for Retail Individual Investors (RII) and Non-Institutional Investors (NII), ensuring a balanced distribution.

Investor Category	Shares Offered
Market Maker	43,200 (5.08%)
Retail	403,200 (47.46%)
NII	403,200 (47.46%)

About Sahara Maritime Limited:

Established in 2009, Sahara Maritime Limited is a non-governmental organization specializing in providing transportation, storage, and communication services for maritime needs. The company offers a spectrum of freight services, including sea freight forwarding, warehousing, multimodal transportation, and allied logistics services. Operating on an asset-light model, Sahara Maritime reduces operational risks and focuses on efficiency.

Key Financial Indicators:

As of September 30, 2023, Sahara Maritime Limited showcased commendable financial performance:

Metric	Values
Assets	Rs 880.95 Lakhs
Revenue	Rs 531.99 Lakhs
Profit After Tax	Rs 1.04 Lakhs
Net Worth	Rs 531.58 Lakhs

Key Performance Indicators:

- Market Capitalization: Rs 24.87 Crores
- Return on Equity (ROE): 26.72%
- Return on Capital Employed (ROCE): 32.77%
- Debt/Equity Ratio: 0.33
- Return on Net Worth (RoNW): 22.76%

Objects of the Issue:

The net proceeds from the IPO will be utilized for the following purposes:

- Funding capital expenditure requirements for the purchase of commercial vehicles and office equipment.
- Meeting working capital requirements.
- General corporate purposes

Conclusion:

Sahara Maritime Limited, with its strategic focus on maritime logistics, has successfully navigated the IPO waters, attracting substantial investor interest. The subscription numbers and financial performance showcase the company's potential as a key player in the logistics sector.
Investors considering Sahara Maritime IPO are advised to conduct thorough due diligence and evaluate the company's growth trajectory. While the subscription figures indicate positive market sentiment, it's essential for investors to align their investment goals with the company's future prospects.
The IPO's pricing, as per expert reviews, has been termed as exorbitant based on annualized FY24 earnings. Investors looking to participate in Sahara Maritime's journey should carefully assess their risk appetite and consider the long-term prospects of the company.
As with any investment decision, it's crucial to stay informed and seek professional financial advice. The maritime logistics sector, with its inherent challenges and opportunities, offers investors a unique avenue for diversification. As Sahara Maritime sets sail into the stock market, investors are advised to tread the waters with caution, considering both the risks and rewards associated with this investment.

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