About Seven Islands Shipping Limited IPO

Headquartered in Mumbai, Seven Islands Shipping Limited is a seaborne logistics company that was incorporated in 2002. The company is engaged in the trading of petrochemical lubricants, crude oil, and more. A few of the primary priorities of this company include secure transportation, efficiency while maintaining a clean environment.

Seven Islands transports crude oil in vessels that are categorised as Suezmax, Aframax and VLCCs. The company operates 20 vessels in total, which includes 13 MR vessels, 4 small vessels, while the rest are Suezmax vessels.

Seven Islands Shipping IPO Objectives

Seven Islands Shipping aims to fulfil the following objectives by utilising the net proceeds from its initial public offering:

- Fulfilment of general corporate purchases.
- Financing the purchase of MR vessel and VLCC vessel in the secondary market.

Seven Islands Shipping IPO - Details

Seven Islands Shipping Limited has filed preliminary papers with capital market regulator SEBI to raise funds worth Rs. 600 crores via public issue. As per the draft red herring prospectus (DRHP), the initial public offering will include a fresh issue worth Rs. 400 crores. The rest of the public issue will comprise an offer for sale (OFS) by existing shareholders and promoters.

FIH Mauritius Investment will raise Rs. 100 crores. Whereas Thomas Wilfred Pinto and Leena Metylda Pinto will be offloading equity shares worth up to Rs. 85.64 crores and Rs. 14.35 crores respectively via the secondary issue.

Opening Date

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Market Lot

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Opening Date

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per equity share

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Listing at NSE, BSE

Seven Islands Shipping IPO Important Dates

IPO Open Date To be announced
IPO Close Date To be announced
Basis Of Allotment Date To be announced
Initiation Of Refunds To be announced
Credit Of Shares To
Demat ACcount
To be announced
IPO Listing Date To be announced
UPI Mandate Expiry Date To be announced

Why Should You Invest in Seven Islands Shipping IPO?

Seven Islands Shipping has a proven track record when it comes to delivering strong financial services. The company’s highly experienced and efficient management team has played a vital role in that regard. They have formed longstanding relationships with some of the leading oil and gas customers. It is represented by the renewal of the short-term (12-24 months) contracts on time.

Taking into account the fact that demand for vessels to transport and import crude oil has been rising steadily, it appears that this company has tremendous potential to grow. Furthermore, key metrics such as revenue and margins in relation to this company is expected to grow. Hence, investors might consider subscribing to Seven Islands Shipping’s initial public offering.

Financial Highlights

Financial Year (As of) Total Assets (in Rs. Crore) Total Expenses (in Rs. Crore) Total Revenue (in Rs. Crore) Profit After Tax (in Rs. Crore)
30th December 2020 18,032.99 6,198.77 7,425.64 1,194.67
March 2020 16,552.68 6,432.01 7,279.61 802.96
March 2019 12,260.06 4,293.23 4,703.22 388.16
March 2018 9,356.51 3,263.31 4,151.63 880.01
Here are some vital financial details concerning Seven Islands Shipping:
  • This company recorded an EBITDA margin of 50.6%, 35.8% and 38.1% in FY2018, FY2019 and FY2020, respectively.
  • For FY2020, Seven Islands Shipping’s profit from operations stood at Rs. 802.96 million.

How to apply for Seven Islands Shipping IPO?

You can apply for the Seven Islands Shipping IPO in these ways:

UPI
Link your bank account to a reliable UPI ID and register it with your Angel One account. Proceed to book Seven Islands Shipping IPO shares using the ID, confirm the payment on the UPI app, and block the amount for allotment.

Demat Account

1. If you are already a client of Angel One, apply directly for Ami Organics IPO, click here.
2. If you’re a new investor Open DEMAT Account for free with Angel One to begin your investment journey.

Seven Islands Shipping IPO – Noteworthy Highlights

Here are some crucial highlights regarding Seven Islands Shipping:

- As of 31 January 2021, Seven Islands Shipping had 20 liquid cargo vessels in total, having a deadweight capacity of 1,105,682 MT.

- Seven Islands Shipping has raised funds worth Rs. 5 billion over 1 round. Its last funding came on 29 March 2019.

Seven Islands Shipping IPO - SWOT Analysis

strengths

Strengths

  • Proven Track Record: Seven Islands Shipping has a proven track record when it comes to financial performance. The company purchases vessels at an optimum price. Moreover, the measures taken by it have been instrumental in reducing costs and maintaining operational efficiency.
  • Highly Efficient and Experienced Management Team: The company has a highly experienced management team; its promoters have more than three decades of experience. Furthermore, they’ve managed to develop favourable relationships with oil majors belonging to the public sector, which is evident considering the favourable short-term contracts which the company renews on a timely basis.
  • Judicious Risk Management Policies: This company has judicious risk management policies, which include acquiring a vessel only after assurance of deployment.
Weaknesses

Weaknesses

  • Capital Requirement is High: This company requires a substantial amount of capital to run its operations owing to the high cost of ocean-going tankers. While the price of an MR tanker is more than Rs. 65 crores, a Suezmax vessel costs anywhere between Rs. 100 crores and Rs. 125 crores.
Opportunities

Opportunities

  • The Increasing Demand for Oil Tankers: The demand for vessels to transport and import crude oil has been rising, considering India has one of the fastest-growing oil import rates. Seven Islands appears to be in an excellent position given that the company primarily operates along the Indian coast.
Threats

Threats

  • Unfavourable Regulatory Changes: If any unfavourable change materialises in relation to the tanker division, the Cabotage Law, in particular, the company’s risk profile could be impacted severely.
  • Growing Competition: The increasing competition in the industry could affect the charter rates.
Strenghts Strengths
Weaknesses Weaknesses
Opportunities Opportunities
Threats Threats

Strengths

  • Brand recognition: The company has a global footprint in more than 24 countries with a partnered network of over 1.5 million restaurants.
  • Business model: Zomato follows a B2C business model that connects customers to a wide network of restaurants. The company has an asset-less business model, giving it high financial leverage.
  • Marketing: Zomato follows a robustly creative marketing strategy both online and offline. Accordingly, it has a decent customer engagement and has over 11.2 million active users each month.
  • User-friendly: The Zomato app and web portal come with an easy-to-navigate UI.

Weaknesses 

  • Competition: Newer food delivery platforms with unique offerings are mushrooming now more than ever. It not only limits Zomato’s market expansion scope but also imposes a threat to its existing customer base.
  • Business model: Though Zomato’s business model is currently working in its favour, there are high chances tech developments could impose a foundational threat. If Zomato stops innovating and improving its customer service, its very successful business model could restrain its potential.

Opportunities 

  • Market expansion: Zomato is active in 25 countries. Moreover, it has not reached the saturation point yet. Therefore, given its current market momentum and growth potential, it can be expected that the food delivery service will witness upward mobility and rapid market expansion in the next couple of years.
  • Online users: The percentage of smartphones users with interest access is increasing every day. This opens up a great growth opportunity for Zomato to expand its target base and market presence.
  • Technological development: As the tech space continues to bring in newer innovations, it could open newer paths for Zomato to explore.

Threats 

  • Competition: Newer food delivery platforms with unique offerings are mushrooming now more than ever. It not only limits Zomato’s market expansion scope but also imposes a threat to its existing customer base.
  • Business model: Though Zomato’s business model is currently working in its favour, there are high chances tech developments could impose a foundational threat. If Zomato stops innovating and improving its customer service, its very successful business model could restrain its potential.

Competitive Analysis: Market Peers

Here is a table that provides an insight regarding the competition that Seven Islands Shipping faces from its competition:

Name of the Company Seven Islands Shipping Great Eastern Shipping Company Shipping Corporation of India Transport Corporation of India VRL Logistics Limited
Face Value Rs. 10 Rs. 10 Rs. 10 Rs. 2 Rs. 10
EPS (in Rs.) 14.03 13.9 7.2 Rs. 18.5 10.0
Return on Net Worth (RONW) 10.6% 3.0% 4.5% 14% 14.6%
Note that all figures in the table above are as per data available at the time of writing.

Seven Islands Shipping IPO FAQs

What is Seven Islands IPO?

Seven Islands Shipping has filed DRHP with capital market regulator SEBI to raise funds worth Rs. 600 crores via an initial public offering. This company’s public issue will comprise a fresh issue of Rs. 400 crores and an offer for sale (OFS) of Rs. 200 crores by existing shareholders and promoters.

From when can investors start subscribing to Seven Islands IPO?

The opening date of this forthcoming IPO is not yet known.

Who are the book running leads managers in relation to Seven Islands Shipping IPO?

The lead managers for this initial public offering are IIFL Securities Ltd. and JM Financial.

What is the price band of this forthcoming public issue?

Seven Islands has not disclosed the price band of its upcoming IPO as of yet.

How will investors receive the allotted shares?

After the completion of the allotment process, shares will be credited to the Demat account of investors.

Who is the registrar for Seven Islands IPO?

The registrar for the public issue of Seven Islands is Link Intime India Private Limited.

Who are the promoters of Seven Islands?

The promoters of this company are Thomas Wilfred Pinto, Leena Metylda Pinto and FIH Mauritius Investments Ltd.

How can investors check the allotment status of Seven Islands IPO?

Once the allotment process is complete, investors can check the status via Angel One’s online trading platform or BSE’s official website.

What are the different segments of investors that can apply for the Seven Islands IPO?

Seven Islands will be reserving portions of the public issue for qualified institutional buyers (QIBs), non-Institutional investors (NIIs) and retail individual investors (RIIs).

What type of IPO is Seven Islands IPO?

The initial public offering of Seven Islands is a book build issue.

What is the listing date of Seven Islands IPO?

The listing date of Seven Islands’ initial public offering has not been announced yet.

What are some of the listed peers of Seven Islands Shipping?

Some of the listed peers of Seven Islands Shipping include Hariyana Ship Breakers Limited, Shipping Corporation of India Limited, Great Eastern Shipping Company Limited and Essar Shipping Limited.

How to apply for Seven Islands IPO via Angel One App?

Apply for Seven Island IPO in these steps:
Step 1: Go to 'Investment Opportunities' on the Angel One app.
Step 2: Select the ‘IPOs and FPOs’.
Step 3: Enter essential details.
Step 4: Enter your NPCI approved UPI ID/Handle.
Step 5: Click on the ‘Invest’ button to book Seven Island.

Can I apply for Seven Islands IPO if I do not have a UPI ID?

If you do not have a UPI ID, you can create one instantly. First, however, make sure to create an ID on a UPI Handle that features in the NPCI list. As an alternate option, you can apply for Seven Islands IPO through ASBA via bank or physical form.

How can I create a UPI ID?

One can easily create a UPI ID through the BHIM app these easy steps:
Step 1: Go to the play store and download the BHIM app.
Step 2: Verify your mobile number and register your passcode.
Step 3: Choose your bank from the available options.
Step 4: Let the app fetch the required bank details.
Step 5: If you have multiple accounts, select the one you wish to register with your BHIM.
Step 6: Create a UPI PIN.
Once these steps are covered, navigate to your profile section to check your UPI ID.

Why cannot I apply for Seven Islands IPO through my UPI ID/Handle?

Only NPCI approved UPI IDs can apply for Seven Islands IPO. Check the list of apps and banks approved by NPCI for providing UPI service to apply for this IPO.

Why can't I find my UPI handle from the list of handles in Angel One's dropdown menu while applying for Seven Islands?

Often users cannot find their UPI handle in the dropdown list of Angel One's IPO page. It could be because their UPI hand is not NPCI approved, and so they cannot apply for a company's IPO. To resolve your problem, you can create a new UPI ID on a handle featured on the NPCI list.

Where do I check my UPI ID?

You can check your UPI ID from the concerned UPI app’s profile section. Click here to gain a better insight into how to locate your UPI ID on common UPI apps.

When can I receive my UPI mandate request after placing the Seven Islands IPO order?

You are likely to receive a UPI mandate request on your UPI app within 15-20 minutes of bidding for the Seven Islands IPO on Angel One app. However, there might be some delay in receiving the mandate request from your designated bank.

How am I supposed to approve the Seven Islands IPO mandate request?

Typically, you can approve your Seven Islands IPO mandate request on your UPI app. Click here to understand the steps involved to approve the mandate on different UPI apps.

When can I approve the IPO UPI mandate request?

One can approve the UPI mandate request before noon on the next working day after the Seven Islands IPO closed for public subscription. Please make sure to approve the Seven Islands IPO mandate request at the earliest.

I have approved the UPI mandate request on the app. But, the mandate request status on Angel One app shows pending. What shall I do?

Note that the UPI mandate request on our app does not get updated in real-time. However, the status will reflect shortly in the IPO order book if you have approved the request status correctly.

Can I apply for Seven Islands IPO multiple times?

Ideally, one application per PAN is recommended as applying multiple times does not necessarily increase the chance of securing share allotment. Even if you choose to apply for Seven Islands IPO more than once and from different platforms, you are likely to get your application rejected and not get shares allotted.

Is there any charge for applying for Seven Islands IPO?

When you apply for Seven Islands IPO via Angel One, you do not necessarily have to pay any charge.

Can an NRI apply for Seven Islands IPO via Angel One app?

NRIs cannot apply for Seven Islands IPO through Angel One app. However, they may choose to apply through the physical Application Supported By Blocked Amount process via their bank.

Can I use the Angel One app to apply for Seven Islands IPO?

Yes, you can apply for Seven Islands initial public offering using any bank account that is in your name.

Can I apply for Seven Islands IPO using a current account?

It is often recommended to apply for Seven Islands IPO via a savings account. This is because most banks do not always process initial public applications made through current accounts. Make sure to check with your bank first to gather more details.

Will I be able to apply for Seven Islands IPO using my HUF’s account?

HUFs cannot apply for Seven Islands IPO via Angel One app. However, they can use their HUF’s account to apply for this IPO via the physical ASBA process with their bank.

My daughter is a minor. Can I subscribe to Seven Islands IPO using my daughter’s account?

You cannot use a minor’s account to subscribe to Seven Island’s IPO through Angel One app. However, a minor can apply for the IPO through a physical ASBA process with his/her bank.

My account did not get debited even after I applied for Seven Islands IPO?

Following the ASBA process, banks usually hold or block money when you apply for an IPO.
- After shares are allotted, the money is debited from the account.
- If the shares are not allotted to you, the amount will be unblocked/released to your account on/before the expiry date of the UPI mandate.

Can I modify my Seven Islands IPO bid?

Yes, you can modify your IPO bid's lot size and UPI ID after placing an order. Take note that once you approve your UPI mandate request for the Seven Islands IPO bid and then decide to modify the order later, the bid amount will be blocked along with the amount blocked for the initial bid. Following this, you will receive another mandate request. In case you do not approve the initial mandate, zero amount will be blocked for that bid.

Can I cancel my Seven Islands IPO bid?

Cancel your Seven Islands IPO bid by following these steps -
Step 1: Go to the ‘Investment Opportunities’ tab on Angel One app.
Step 2: Navigate to ‘IPOs and FPOs’ section.
Step 3: Click on the relevant ‘Order Book’ option.
Step 4: Select Seven Islands IPO order.
Step 5: Click on ‘Details’
Step 6: Click the ‘Cancel’ option
Step 7: Choose the withdraw/delete/cancel application option.

Shall I apply for Seven Islands IPO at a cut-off price?

IPO shares are issued to investors at a cut off price. The said price is determined at IPO allotment stage. Ideally, retail investors bid for IPO shares at a cut off price to boost their chance of receiving an allotment.

How can I check my Seven Islands IPO application status?

Once you apply for Seven Islands IPO status, you can check the application status in the following steps:
Step 1: Navigate to ‘Investment Opportunities’ and then to ‘IPOs & FPOs’ option.
Step 2: Click on the relevant ‘Order Book’ option.
The application status will appear on the screen.

Why is my Seven Islands IPO application rejected?

Your Seven Islands IPO application can be rejected due to any of these reasons -
- When approving the UPI mandate request, you might have used the wrong UPI PIN or UPI ID.
- Your Demat A/c, bank A/c, and UPI ID are not mapped to one PAN.
For instance, Priyanka uses Rohit's UPI ID to subscribe to Seven Islands IPO with her Demat A/c. But, her application may get rejected because:
- Rohit’s bank A/c is not linked to Priyanka’s Demat A/c
Rohit’s UPI is not linked to Priyanka’s PAN

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