SEBI’s clearance to Seven Islands shipping to raise funds

The seaborne logistics company received permission from the market regulator to raise Rs 600 crore through an initial public offering.

As per the red draft herring prospectus, the amount raised from the public issue amounts to Rs 400 crore. Offer for sale will generate the remaining amount of Rs 200 crore.

Further, FIH Mauritius Investment will generate the amount of Rs 100 crore from the offer for sale. Also, under the remaining amount, Thomas Wilfred Pinto will raise Rs 85.64 crore and Leena Metylda Pinto contributes Rs 14.35 crore.

The company received observation on March 22 after filing a preliminary paper with SEBI. In fact, SEBI scrutiny is crucial for every company when they plan to raise money through an initial public offering. Also, when they require money issued from follow on public offer.

Further, the company plans to obtain a crude carrier vessel and one medium-range vessel. This amounts to an expenditure of Rs 352.43 crore. This acquisition will take place through the use of the funds raised from the fresh issue.

In 2017, the company made an effort to enter the capital markets. As mentioned, the portion for qualified institutional buyers is 50 percent. Whereas, reservation for non-institutional investors is 15 percent and 35 percent is for the retail investors.

Seven Island shipping is located in Mumbai. It started its operation in 2003 and was incorporated on 2nd May 2002.

The firm currently owns fleets of 19 vessels including 2 crude oil tankers and 17 product carriers.


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