Arvind Port & Infra
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 12 Oct 2023 – 16 Oct 2023
- Listing date
- 25 Oct 2023
- Face value
- ₹10 per share
- Issue price
- ₹45 per share
- Lot size
- 3,000 shares
- Total issue size
- ₹14.74 Cr
- Market cap at offer price
- ₹54.62 Cr
- Promoter holding
- 100.00% → 73.00% pre-issue → post-issue
- ISIN
- INE0P4T01013
- Registrar
- Skyline Financial Services Pvt.Ltd.
- Lead managers
- Beeline Capital Advisors Pvt.Ltd.
- Registered office
- City point 701 to 702, Fifth Floor, Nr.Town Hall, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 1,68,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹45
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,35,000 |
| S-HNI (min) | 2 | 6,000 | ₹2,70,000 |
| S-HNI (max) | 7 | 21,000 | ₹9,45,000 |
| B-HNI (min) | 8 | 24,000 | ₹10,80,000 |
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.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 4.62 | — |
| P/E (×) | 9.74 | — |
| Market cap | — | ₹54.62 Cr |
Key performance indicators
- Return on net worth
- 46.88%
- ROCE
- 37.44%
- Debt / equity
- 2.44
- PAT margin
- 48.79%
- NAV per share
- ₹12.17
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Arvind Port & Infra
Arvind and Company Shipping Agencies Limited, incorporated in 1987 and converted to public company in 2023, operates in two primary business verticals: (1) chartering of flat-bottomed barges for cargo transportation on inland waterways and coastal areas, and (2) hotel and hospitality operations with portfolio of two properties (Hotel Millennium Plaza owned since 1997, and Hotel 999 managed since 2023). The company is part of the Arcadia group which has approximately 34 barges and provides port construction and chartering services. With headquarters in Jamnagar, Gujarat, the company has ventured into barge chartering from FY 2021, having acquired 5 barges to date. The company serves construction companies, port operators, and shipping logistics providers requiring vessels for cargo transportation and marine works. Revenue generation comes primarily from barge rental and hotel operations, with significant revenue concentration in Jamnagar region and dependence on limited customer base.
Company Analysis
from RHPArvind and Company Shipping Agencies Limited is a barge chartering and hospitality services company operating in port construction and coastal logistics in Gujarat, India.
Arvind and Company Shipping Agencies Limited, incorporated in 1987 and converted to public company in 2023, operates in two primary business verticals: (1) chartering of flat-bottomed barges for cargo transportation on inland waterways and coastal areas, and (2) hotel and hospitality operations with portfolio of two properties (Hotel Millennium Plaza owned since 1997, and Hotel 999 managed since 2023). The company is part of the Arcadia group which has approximately 34 barges and provides port construction and chartering services. With headquarters in Jamnagar, Gujarat, the company has ventured into barge chartering from FY 2021, having acquired 5 barges to date. The company serves construction companies, port operators, and shipping logistics providers requiring vessels for cargo transportation and marine works. Revenue generation comes primarily from barge rental and hotel operations, with significant revenue concentration in Jamnagar region and dependence on limited customer base.
Objects of the Issue
- Funding Capital Expenditure of the company - Purchase of two barges (Arcadia Parshva: a 50m x 18m x 3m Crane Pontoon Barge, and Ananta: a 55m x 18m x 3m deck loading pontoon) 1102.00 lakhs (74.75% of gross issue proceeds) p.77
- General Corporate Purpose - Including funding growth opportunities, servicing repayment obligations under financing arrangements, capital expenditure for expansion/development of assets, working capital requirements, meeting general business expenses, and strategic initiatives 182.05 lakhs (12.35% of gross issue proceeds) p.77
- Public Issue Related Expenses - Including Lead Manager fees, underwriting commission, advisor fees, registrar fees, advertising and marketing expenses, regulatory and exchange fees, auditor fees, market maker fees, and bank charges 190.15 lakhs (12.90% of gross issue proceeds) p.77
Issue Structure
- Total Issue
- 3276000 Equity Shares aggregating to ₹ 1474.20 Lakhs
- Fresh Issue
- 3276000 Equity Shares of face value ₹ 10/- each at Issue Price of ₹ 45/- per share aggregating to ₹ 1474.20 Lakhs (entire issue is fresh issue; nil offer for sale)
- Offer for Sale
- Nil (not applicable as entire issue constitutes fresh issue of equity shares)
- Price Band
- Fixed price of ₹ 45/- per Equity Share (Issue Price is 4.5 times the face value of ₹ 10/-)
- Lot Size
- Bid Lot of 3000 Equity Shares and in multiples of 3000 thereafter
- Face Value
- ₹ 10/- per Equity Share
Business Model
The company operates on a barge chartering model where it owns flat-bottomed barges and leases them to customers (primarily construction and port companies) for periods ranging from 6 to 18 months. Revenue is generated through time-based rental contracts which include towing services to customer locations. Additionally, the hospitality business generates revenue from room accommodation and food services (outsourced to third parties). The company maintains facilities at Jamnagar near major refineries and manufacturing units, leveraging strategic location to attract customers.
Business Segments
SWOT Analysis
- • Experienced promoters with 40+ years across construction, food, and barge chartering(p.108)
- • Competitive cost structure and efficient operations with lean cost management(p.118)
- • Strategic location near major ports and shipping hubs reduces transportation costs(p.118)
- • High EBITDA margins demonstrating operational efficiency(p.82)
- • Strong profit after tax margin of 48.69% showing profitability(p.82)
- • Geographic concentration with 100% revenue from Gujarat(p.23)
- • Heavy dependence on barge chartering for majority of revenue(p.23)
- • Highly concentrated customer base with top 5 customers contributing 93.14% of revenue(p.24)
- • Capital intensive business requiring substantial debt financing(p.33)
- • Registered office and hotel premises leased, not owned by company(p.27)
- • Outstanding tax litigation against promoters totaling Rs. 3.08 Crores(p.24)
- • Negative operating cash flow in past years indicating liquidity challenges(p.33)
- • India plans to invest US$ 82 billion in port projects by 2035(p.19)
- • Cargo traffic growth at major ports at 16.71% in FY23(p.19)
- • Expected capacity enhancement to 3,300+ MMTPA by 2025 creating service opportunities(p.100)
- • Tourism and hospitality sector expected to grow 7-9% annually between 2019-2030(p.15)
- • Proposed expansion of barge fleet with acquisition of two new barges worth Rs. 1,102 Lakhs(p.76)
- • Expanding hotel operations through Hotel 999 management to boost hospitality revenue(p.108)
- • Economic downturn could reduce cargo demand and barge utilization rates(p.24)
- • High competition from domestic and international players in barge and hotel sectors(p.120)
- • Natural calamities could adversely affect port operations and cargo demand(p.12)
- • Global economic slowdown affecting shipping and trade volumes(p.99)
- • Regulatory changes in maritime shipping could impact operations(p.34)
- • Loss of major customers or failure to renew work orders would critically impact revenue(p.24)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Arvind Kantilal Shah | Promoter and Chairman cum Managing Director | 69.49% | 50.74% |
| Mr. Vinit Arvind Shah | Promoter and Whole Time Director | 12.71% | 9.28% |
| Mrs. Parul Arvind Shah | Promoter | 5.08% | 3.71% |
| Mr. Chintan Arvind Shah | Promoter | 12.37% | 9.03% |
Leadership
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.