Shreeji Shipping Global IPO Sets Sail: A Look at Early Subscription Trends

Shreeji Shipping Global Limited's highly anticipated initial public offering (IPO) has commenced with considerable interest, achieving an overall subscription of 44% by the end of its first day, June 26. This SME IPO aims to raise a significant Rs 33.72 crore and is attracting attention from various investor segments.

A closer look at the subscription data reveals strong enthusiasm from retail individual investors (RIIs), whose portion was subscribed 71% on day one.

Non-institutional investors (NIIs) also showed keen interest, subscribing 17% of their allotted shares. The Qualified Institutional Buyers (QIBs) portion is yet to see bids, a common trend for the first day of an IPO, as these larger investors often place their bids closer to the closing date.

Shreeji Shipping Global Limited is a comprehensive logistics solutions provider, specializing in container freight station (CFS) operations.

The company offers a wide range of services including stevedoring, custom house agent (CHA) services, and bulk cargo handling, playing a crucial role in facilitating seamless trade and transportation. Their expertise spans across various aspects of the shipping and logistics chain, making them a vital link for businesses involved in international trade.

The public issue, which opened on June 26, is set to close on June 28, 2024.

The company has set the IPO price band at Rs 150 to Rs 160 per share. Investors can bid for a minimum of 800 shares, which constitutes one lot, translating to a minimum application amount of Rs 1,28,000 at the upper end of the price band.

Prior to the IPO launch, Shreeji Shipping Global successfully raised Rs 9.61 crore from anchor investors, allotting 600,000 equity shares at Rs 160 per share.

Prominent anchor investors included Navneet Education, India SME Investments, and Founders Collective Fund, signalling confidence from institutional players in the company's prospects and valuation.

The capital raised through this IPO is primarily earmarked for funding the company's working capital requirements and for general corporate purposes.

This strategic utilization of funds is expected to bolster Shreeji Shipping Global's operational capabilities and support its growth trajectory in the competitive logistics sector.

Market observers are also keenly watching the Grey Market Premium (GMP) for Shreeji Shipping Global shares. Unofficial trading in the grey market indicated a GMP of Rs 50-55 per share, suggesting a potential listing at Rs 210-215, which would represent a premium of approximately 31-34% over the issue price.

While GMP is an unofficial indicator and not a reliable forecast, it often provides a preliminary glimpse into market sentiment regarding an IPO's listing potential.

Following the closure of the IPO, the allotment of shares is expected to be finalized by July 1. Subsequently, the refund process will commence on July 2, with shares being credited to demat accounts by July 3.

Shreeji Shipping Global shares are slated to make their debut on the BSE SME platform on July 4, marking a significant milestone for the company and its investors.