About the Company:
Seven Islands Shipping Ltd is engaged in the business of transporting Crude Oil. As of December 2020, Seven Islands Shipping was the third largest seaborne logistics company in India by deadweight tonnage.
In 2020, Company held a significant market share in Indian time charters of crude oil imports.
Company’s all 20 vessels are registered and flagged in India and operate as Indian owned and Indian flagged vessels.
Company is present in the liquid products trade where 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.
Company is also engaged in the crude oil logistics business where crude oil is transported in vessels classified as Aframax, Suezmax and Very Large Crude Carriers or VLCCs.
Company is among the leading liquid seaborne logistics companies in India in terms of number of time charter contracts with Indian charterers in Fiscal 2020.
Company’s Background:
Seven Islands Shipping Ltd had began the operations with only one vessel in Fiscal 2003 and as of January 31, 2021, company had 20 liquid cargo vessels with a total deadweight capacity of 1,105,682 MT.
Out of 20 vessels, four are Small vessels, 13 are MR vessels, and three are Suezmax vessels.
Company’s capacity has grown from 6,009 MT of deadweight as of March 31, 2003 to 66,889 MT of deadweight as of March 31, 2010.
In Fiscal 2010, company had purchased first MR vessel. Since then, company has grown the fleet and capacity by acquisition of additional vessels at regular intervals.
Over the last 18 years, company has acquired 40 vessels and sold 20 vessels and company typically acquires pre-owned vessels.
Revenue from Public sector Companies & Others:
Crude oil imported by Indian oil companies:
In Fiscal 2018, 2019 and 2020, the total amount of crude oil imported by Indian oil companies was 220 MMT, 226 MMT and 227 MMT and India has one of the fastest growing oil import rates.
The demand for oil tanker vessels to import and transport crude oil and oil products has been steadily increasing.
Company is well positioned to capitalize on this opportunity given that we operate primarily along the Indian coast transporting oil products and internationally transporting crude oil.
Company transports crude oil primarily from the Arabian gulf countries to Indian refineries along the Indian coast.
Company’s Customers:
Seven Islands Shipping’s principal customers include leading Indian oil and gas public sector undertakings with whom company has been associated with for over 15 years each. Company’s key customers include Indian Oil Corporation Ltd and Bharat Petroleum Corporation Ltd.
Competitors in the Business:
In our oil product transportation business, domestic trade involving shipping within India, Company’s principal competitors are Shipping Corporation of India, Great Eastern Shipping Company, Sanmar Shipping and LMCS Maritime
As of January 31, 2021, Company’s fleet comprises the following types of vessels:
Classification of tankers, as per Vessels Size:
Regulatory Framework in Indian Seaborne Logistics: (Right of First Refusal)
Right of first refusal (RoFR) is a right which accrues to a bidder in a tendering process for shipping – who offers an Indian flag vessel and whose rate though not being the lowest – to be awarded the tender, subject to his matching of the lowest rate offered by a bidder who offers a foreign flag vessel.
In India, coastal trade is reserved for Indian registered vessels. Foreign vessels can be used for coastal trade only if Indian vessels are not available, after obtaining a No Objection Certificate (NOC) from Indian National Shipping Association (INSA) and approval from the maritime regulator, DG Shipping.
This is applicable for all vessel categories. RoFR is due to the policy of cabotage protection, prevalent across many countries, including India.
Right of First Refusal (RoFR ), hierarchy is as follows:
- Indian built, Indian flagged and Indian owned
- Foreign built, Indian flagged and Indian owned
- Indian built, foreign flagged and foreign owned
Management Team:
- Mr. Thomas Wilfred Pinto (Designation: Chairman and Managing Director)
- Mrs. Leena Metylda Pinto (Designation: Executive, Whole-TimeDirector)
Objectives of the Issue:
- Offer for Sale: (Rs.)
- Each of the Selling Shareholders will be entitled to its portion of the proceeds of the Offer for Sale after deducting its portion of the Offer related expenses. Company will not receive any proceeds from the Offer for Sale.
Fresh Issue: (Rs.)
- Acquisition of one VLCC vessel and one MR vessel in the secondary market (“Acquisition of Vessels”).
- General corporate purposes (collectively, the “Objects”).
Positives for the Company:
Longstanding relationship with major Indian oil and gas customers.
- Company has maintained and continue to maintain a longstanding relationship with leading Indian oil and gas public sector undertakings (PSUs).
- Company has been associated with customers for over 15 years and have also been working with private oil and gas companies in India.
- Revenues generated from PSU customers accounted for 94.9%, 98.2%, 88.9% and 85.2% of our revenue from contracts with customers in Fiscals 2018, 2019 and 2020 and in the nine months ended December 31, 2020, respectively.
- Certain of company’s key customers include Indian Oil Corporation Ltd and Bharat Petroleum Corporation Ltd.
Sizeable and diverse India flagged and owned operating fleet.
- Company began operations with only one vessel in Fiscal 2003 and have, over the last 18 years, acquired 40 vessels and sold 20 vessels.
- Company’s capacity has expanded from about 66,889 MT of deadweight, as of March 31, 2010, to 1,105,682 MT of deadweight, as of January 31, 2021.
- As of December 2020, Seven Islands Shipping is the third largest seaborne logistics company in India by deadweight tonnage.
Consistent Financial performance.
- Company has been profitable from the first year of commencing operations and have continued to be profitable in every Fiscal since incorporation.
- In the period between Fiscal 2018 and Fiscal 2020, company’s revenue from contracts with customers and EBITDA have grown at a CAGR of 31.3% and 14.0%, respectively. and Return on Average Equity and EBITDA margin is among the highest in the seaborne logistics industry in India.
- Although the seaborne logistics industry is capital intensive, our debt to equity ratio as of March 31, 2018, 2019 and 2020 and as of December 31, 2020 was 0.85, 0.65, 0.91 and 0.88 respectively.
Leverage on our India flagged vessels to increase business from Indian companies.
- As the energy requirement and thus crude oil requirements of India are increasing, the Indian oil companies will continue to need to import crude oil from around the world.
- In Fiscal 2018, 2019 and 2020, the total amount of crude oil imported by Indian oil companies was 220 MMT, 226 MMT and 227 MMT. However, only 23% and 21% of the crude oil liftings into India in 2019 and 2020 respectively, were carried out by Indian flagged vessels.
- Further, as the market for transportation of oil products along the Indian coast is required to give preference to Indian vessels, company intends to acquire more vessels to be able to increase share of the market for such oil product transportation.
- Company intends to transport crude oil in the VLCC and black oils or white oils in the MR tanker that company intends to acquire from the proceeds of the Fresh Issue and Over the next few years, company aslo intends to foray into the gas carrier segment.
Financials of the Company:
| (in Crores) | FY 18 | FY 19 | FY 20 | 30th Sept 20 |
|---|---|---|---|---|
| Revenue | 415.1 | 470.3 | 727.9 | 742.5 |
| Net Profit | 88.0 | 38.8 | 80.2 | 119.4 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Seven Islands Shipping Ltd | 10 | 14.03 | TBA | 10.6% | 139.96 |
| Shipping Corporation of India Ltd | 10 | 7.2 | 12.12 | 4.5% | 162.01 |
| Great Eastern Shipping Company | 10 | 13.9 | 18.48 | 3.0% | 462.39 |
| VRL Logistics Ltd | 10 | 10.0 | 22.92 | 14.6% | 68.28 |
| Transport Corporation of India | 2 | 18.5 | 13.45 | 14.0% | 133.27 |
| TCI Express Ltd | 100 | 23.2 | 41.58 | 26.4% | 87.93 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | Coming Soon |
| Issue Closes on:. | Coming Soon |
| Issue Price | Will be Updated |
| Face Value | Will be Updated |
| Retail Category Allocation | Will be Updated |
| Minimum Lot | Will be Updated |
| Minimum Investment | Will be Updated |
| Issue Constitutes | Will be Updated |
| Issue Size | Will be Updated |
| Market Cap | Will be Updated |
| Listing at | NSE & BSE |
| Equity Shares Offered | Will be Updated |
| Equity Shares Prior | Will be Updated |
| Equity Shares after the issue | Will be Updated |
Also Read : List of Upcoming IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | Will be Updated |
| Initiation of Refunds | Will be Updated |
| Credit of Equity Shares: | Will be Updated |
| Listing Date: | Will be Updated |
Subscription Details: (Will be Updated)
| (Subscription-Category-Wise (no. of times) Till time : 00:00) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | ||||
| NII | ||||
| Retail | ||||
| Employee | ||||
| TOTAL |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 14.03 | Will be Updated | 10.6% | 139.96 |
| Check IPO Allotment Status: |
|---|
Link InTime Website: https://linkintime.co.in/PublicIssue/BSE IPO Website: https://www.bseindia.com/IPO/Allotment |
| Company Contact Info: |
|---|
| Seven Islands Shipping Limited Suite 3A, 3B & 4, Level 8, B Wing Times Square, Andheri – Kurla Road Andheri (East), Mumbai 400 059 Tel: (91 22) 4225 4225 Fax: (91 22) 4225 4226 E-mail: sevenislands@sishipping.com Website: www.sishipping.com |
| IPO Registrar Info: |
|---|
| Link Intime India Private Limited C-101, 247 Park LBS Marg, Surya Nagar, Gandhi Nagar, Vikhroli (West), Mumbai 400 083 Tel: (91 22) 4918 6200 E-mail: sevenislands.ipo@linkintime.co.in Website: www.linkintime.co.in |
