Seaborne logistics firm Seven Islands Shipping has received markets regulator Sebi's go-ahead to raise Rs 600 crore through an initial share-sale. The public issue comprises a fundraise via fresh issue amounting to Rs 400 crore, and an offer for sale aggregating up to Rs 200 crore, according to draft red herring prospectus filed with Sebi.
Under the offer for sale, up to Rs 100 crore will be raised by FIH Mauritius Investment, up to Rs 85.64 crore by Thomas Wilfred Pinto, and up to Rs 14.35 crore by Leena Metylda Pinto.
Seaborne logistics company, which filed preliminary papers with Sebi in February, obtained its observation on March 22, latest update with the Securities and Exchange Board of India (Sebi) showed.
Sebi's observation is very necessary for any company to launch public issues like initial public offer (IPO), follow on public offer (FPO) and rights issue.
The company will utilise the net proceeds raised from the fresh issue to acquire a large crude carrier vessel and one medium-range vessel from the secondary market at an estimated expense of Rs 352.43 crore. Earlier, the company tried to tap the capital markets in 2017.
Going by the draft papers, the portion reserved for qualified institutional buyers will be up to 50 per cent of the offer, and non-institutional investors will have up to 15 per cent of the portion reserved. Up to 35 per cent will be reserved for the retail investors.
The company started its operations in 2003 with one vessel and currently has 20 Indian-flagged and Indian-owned liquid cargo vessels with a total dead weight tonnage capacity of 1,105,682 MT. Over the past 18 years, the company has acquired 40 vessels and sold 20 vessels.