ABS Marine Services
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 10 May 2024 – 15 May 2024
- Listing date
- 21 May 2024
- Face value
- ₹10 per share
- Issue price
- ₹147 per share
- Lot size
- 1,000 shares
- Issue type
- Book Building issue
- Total issue size
- ₹96.29 Cr
- Market cap at offer price
- ₹361 Cr
- Promoter holding
- 86.50% → 63.42% pre-issue → post-issue
- ISIN
- INE0QRV01016
- Registrar
- Purva Sharegistry (India) Pvt.Ltd.
- Lead managers
- GYR Capital Advisors Pvt.Ltd.
- Registered office
- Flat No.3, Anugraha Foundation, No.15, Valliammal Road, Vepery, Tamil Nadu
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 18,41,000 | — | — |
| Market maker | 4,10,000 | — | — |
Application size
Minimum 1,000 shares per lot, in multiples, at ₹147
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,000 | ₹1,47,000 |
| S-HNI (min) | 2 | 2,000 | ₹2,94,000 |
| S-HNI (max) | 6 | 6,000 | ₹8,82,000 |
| B-HNI (min) | 7 | 7,000 | ₹10,29,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 13.09 | 9.59 |
| P/E (×) | 11.23 | 15.33 |
| Price to book (×) | 2.26 | — |
| Market cap | — | ₹361 Cr |
Key performance indicators
- Return on net worth
- 20.10%
- ROCE
- 18.67%
- Debt / equity
- 0.39
- PAT margin
- 18.41%
- NAV per share
- ₹65.10
- Price to book
- 2.26
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About ABS Marine Services
ABS Marine Services Limited, formerly a private company incorporated in 1992, is now a public company operating a fleet of offshore and bulk carrier vessels. The company provides vessel chartering services with revenue primarily derived from contracts denominated in foreign currencies (mainly US Dollar). The company has demonstrated revenue growth from ₹7,163.01 lakhs in FY 2021-22 to ₹13,515.68 lakhs in FY 2023-24 on a consolidated basis. The company funds its operations through a combination of internal accruals and debt financing from banks including SBI and HDFC Bank Limited. The company is proposing to expand its fleet by acquiring an offshore vessel and funding working capital requirements through this IPO.
Company Analysis
from RHPABS Marine Services Limited operates offshore and bulk carrier vessels for maritime services, primarily serving the oil and gas and general cargo industries.
ABS Marine Services Limited, formerly a private company incorporated in 1992, is now a public company operating a fleet of offshore and bulk carrier vessels. The company provides vessel chartering services with revenue primarily derived from contracts denominated in foreign currencies (mainly US Dollar). The company has demonstrated revenue growth from ₹7,163.01 lakhs in FY 2021-22 to ₹13,515.68 lakhs in FY 2023-24 on a consolidated basis. The company funds its operations through a combination of internal accruals and debt financing from banks including SBI and HDFC Bank Limited. The company is proposing to expand its fleet by acquiring an offshore vessel and funding working capital requirements through this IPO.
Objects of the Issue
- Acquisition of offshore vessel Upto ₹5,500 lakhs p.88
- Funding the working capital requirements of our Company Upto ₹2,500 lakhs p.88
- General corporate purposes [●] lakhs (not exceeding 25% of gross proceeds) p.88
- Funding capex and general business purposes p.312
Issue Structure
- Total Issue
- 65,50,000 Equity Shares of face value of ₹10/- each aggregating up to ₹ [●] lakhs
- Fresh Issue
- 65,50,000 Equity Shares of face value of ₹10/- each aggregating up to ₹ [●] lakhs
- Price Band
- [●] to [●] per Equity Share
- Lot Size
- Not specified in this section
- Face Value
- ₹10/- each
Business Model
The company earns revenue from maritime vessel chartering contracts. Most revenues are from contracts for employment of vessels denominated in foreign currencies, primarily US Dollar. The company operates vessels in various segments and derives revenue from offshore operations and general cargo services. The business model relies on owning and operating vessels to generate charter income.
Business Segments
SWOT Analysis
- • Fully integrated vessel management with in-house commercial capabilities(p.22)
- • Strong customer base with Government and PSU contracts(p.22)
- • Improved collections efficiency from Government/PSU customers(p.31)
- • All vessels Indian-flagged enabling cabotage advantages(p.39)
- • Relatively young fleet with manageable maintenance costs(p.31)
- • No material litigation history(p.24)
- • Promoter group stability with no change in control(p.190)
- • Clean regulatory compliance with no wilful defaults(p.191)
- • No capital market prohibitions against promoters(p.191)
- • Multi-subsidiary operational structure established(p.193)
- • Consistent revenue growth over three years(p.273)
- • Improved profitability and PAT margin expansion(p.273)
- • Strong EBITDA margin and PAT margin(p.273)
- • Positive return on equity(p.273)
- • Solid net worth and positive financial position(p.295)
- • Clean litigation and regulatory track record(p.286)
- • High customer concentration with few large clients(p.30)
- • Revenue concentration in owned vessels may decline with age(p.30)
- • High trade receivables relative to revenue(p.31)
- • Significant debt burden with promoter personal guarantees(p.40)
- • History of negative operating cash flows(p.37)
- • No registered trademark protection for corporate brand(p.36)
- • Concentration of control with promoters holding 86.5% pre-IPO(p.23)
- • Significant foreign currency exposure; most revenues from foreign-currency contracts(p.48)
- • Risk of vessel arrest by maritime claimants causing loss of earnings and cash flow(p.48)
- • Vessel concentration risk; arrest of one vessel could force prepayment of acquisition loans(p.48)
- • Dependence on secondary market for vessel acquisition with extended timelines(p.90)
- • Funding requirements not appraised by financial institutions(p.89)
- • Heavy dependence on core promoter family shareholding(p.214)
- • Subsidiary with accumulated losses and negative net worth(p.195)
- • Another loss-making subsidiary with deteriorating performance(p.198)
- • Group company with operational challenges(p.194)
- • Significant dependence on few customers(p.285)
- • Moderate debt burden with 0.39 debt-to-equity ratio(p.269)
- • Working capital financed through borrowings(p.272)
- • Expansion into new vessel acquisition supporting business growth(p.23)
- • Leveraging strong Indian economic growth trajectory(p.22)
- • Diversifying customer base beyond Government/PSU(p.30)
- • Working capital optimization through IPO proceeds(p.23)
- • Fleet modernization to meet IMO decarbonization goals(p.32)
- • Expanding vessel management services for third-party vessels(p.30)
- • Acquisition of offshore vessel to expand fleet capacity(p.88)
- • Funding working capital to support future growth requirements(p.94)
- • Enhancement of brand and creation of public market through listing(p.88)
- • India's economic growth supporting external trade and capital flows(p.109)
- • Dividend reinvestment capability through current profitability(p.200)
- • Expansion through subsidiary charter business operations(p.194)
- • Strategic growth through diversification of services(p.285)
- • Expansion into new geographic markets(p.291)
- • Long-term customer contracts providing revenue stability(p.285)
- • PSU tender process challenges including strict compliance and long delays(p.30)
- • Limited secondary vessel market availability at favorable pricing(p.32)
- • Vessel operating costs increase with age and regulatory changes(p.31)
- • Extensive maritime regulations and compliance requirements(p.34)
- • Fuel price volatility affects charter rate negotiations(p.34)
- • Intense competitive industry with lower-cost rivals(p.37)
- • Interest rate increases affecting borrowing costs(p.37)
- • COVID-19 pandemic ongoing operational and economic impacts(p.34)
- • Cabotage law changes could eliminate first-refusal advantages(p.39)
- • Counterparty default risks on charter agreements(p.34)
- • Technological obsolescence of existing fleet(p.38)
- • Foreign exchange volatility impacting international operations(p.47)
- • Foreign exchange rate fluctuations affecting reported revenues and debt servicing costs(p.48)
- • RBI policy changes limiting ability to hedge foreign currency exposures(p.48)
- • Equity share price volatility due to market conditions and industry-specific factors(p.48)
- • Changing tax laws and GST regime impacting business performance(p.49)
- • Foreign investment restrictions under Indian law(p.49)
- • Downgrading of India's debt rating affecting ability to raise overseas financing(p.49)
- • Slowdown in Indian economic growth affecting business(p.49)
- • Rising inflation limiting ability to pass costs to customers(p.50)
- • Financial instability and disruptions in Indian and global financial markets(p.50)
- • Natural calamities and force majeure events impacting operations(p.50)
- • Extensive HSE laws and regulations requiring substantial expenditures and exposing to liability(p.50)
- • Pirate attacks disrupting operations and increasing insurance/crew costs(p.51)
- • Government requisition of vessels during war or emergency without adequate compensation(p.51)
- • Smuggling of contraband onto vessels creating regulatory claims(p.51)
- • Global economic slowdown and policy changes affecting India's growth and foreign investment(p.51)
- • No formal dividend policy defined in organizational structure(p.200)
- • Absence of guaranteed future dividend payouts(p.200)
- • No dividend history despite five years of operations(p.200)
- • Financing arrangement restrictions on dividend payments(p.200)
- • Economic sensitivity and demand fluctuations(p.273)
- • Regulatory and policy changes affecting maritime operations(p.273)
- • Competition in ship management and charter services(p.273)
- • Macroeconomic volatility and forex risk(p.274)
- • Dependence on international shipping market cycles(p.285)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Capt. P B Narayanan | Promoter | 50.00% | 36.66% |
| Ms. Shreelatha Narayanan | Promoter | 30.00% | 21.98% |
| Ms. Arathi Narayanan | Promoter | 3.00% | 2.20% |
| Capt. Jeevan Krishnan Sanjeevan | Promoter | 3.00% | 2.20% |
| Capt. P B Narayanan | Promoter | 90,00,000 shares | — |
| Shreelatha Narayanan | Promoter | 54,00,000 shares | — |
| Arathi Narayanan | Promoter | 5,40,000 shares | — |
| Capt. Jeevan Krishnan Sanjeevan | Promoter | 5,40,000 shares | — |
| Capt. P B Narayanan | Promoter | 50.00% | — |
| Shreelatha Narayanan | Promoter | 30.00% | — |
| Capt. Jeevan Krishnan Sanjeevan | Promoter | 3.00% | — |
| Arathi Narayanan | Promoter Group | 3.00% | — |
| Not explicitly named in this document section | Promoter | — | — |
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.