Leading private lender HDFC Bank has subscribed to the SME IPO of ABS Marine Services through the anchor round by investing Rs 5 crore. The bank was allotted 3.4 lakh shares at Rs 147 per share, furthering the recent trend of legacy institutional investors looking at SME issues.
ABS Marine Services, which launched the IPO on May 10, has raised a total of Rs 27 crore from anchor investors, where other funds like North Star, and Moneywise Financial Services, among others participated.
Another maritime company Knowledge Marine and Engineering, in which Ashish Kacholia is an investor, came up with an IPO three years ago and the shares have since rallied over 3,000%.
The SME IPO of ABS Marine is a fresh equity sale of 65.5 lakh shares and through the issue, the company aims to raise around Rs 96 crore. The issue, which closes on May 14, was fully subscribed on the first day of the bidding process.
The company is offering its shares at Rs 140-147 apiece, and investors can bid for 1000 shares in one lot.
The net proceeds from the public offer will be used for purchasing of software, to meet working capital requirements and other general corporate purposes.
Ahead of the issue opening, the company’s shares traded with a GMP of Rs 60 in the unlisted market.
ABS Marine Services is a fully integrated company with in-house complete vessel management including commercial management. It provides crew management services to ships comprising oil tankers, gas tankers, bulk carriers, passenger vessels, offshore support vessels, harbor crafts, and high-speed crafts.
India is strategically located on the world’s shipping routes with a coastline of approximately 7,517 km. As of 2021, the country owns over 30% global market share in the ship-breaking industry and is home to the largest ship-breaking facility in the world at Alang.
For the period ended March 2024, the company clocked revenues of Rs 135 crore and net profit of Rs 23.55 crore.
GYR Capital is acting as the lead manager to the issue and Purva Sharegistry India is the registrar.
