Arvind and Company Shipping Agencies marked an exceptional debut on the stock market, soaring by a staggering 77.77 percent over the IPO price on October 25. The stock made a grand entrance, opening at Rs 80, significantly higher than the issue price of Rs 45 on the NSE SME platform.
The company’s initial public offering (IPO) garnered immense attention, witnessing a subscription rate of 359.62 times. Retail investors displayed substantial interest, oversubscribing their quota by 321.96 times, while high net-worth individuals subscribed 436.15 times the allocated portion.
Through the IPO, Arvind and Company Shipping Agencies successfully raised Rs 14.74 crore, with the entire offer comprising a fresh issue of 32.76 lakh shares and no offer-for-sale component. The impressive response from investors reflected the market’s confidence in the company’s growth potential.
Arvind and Company Shipping Agencies has outlined a strategic allocation of the raised funds. A significant portion, Rs 11.02 crore, will be utilized for capital expenditure, specifically for acquiring barges. Additionally, Rs 1.82 crore has been earmarked for general corporate purposes, ensuring the company’s operational efficiency. The remaining funds, amounting to Rs 1.9 crore, will be dedicated to covering public issue expenses.
In the fiscal year 2023, the company demonstrated remarkable financial performance. Profits surged by 247 percent, reaching Rs 3.47 crore, a substantial increase from the previous year’s figure of Rs 1 crore. Simultaneously, revenue from operations experienced a robust growth of 176.6 percent, reaching Rs 7.11 crore, compared to Rs 2.57 crore in the preceding fiscal year.
Arvind and Company Shipping Agencies primarily generates revenue through two key business verticals: chartering of barges and hotel and hospitality services. The company boasts a fleet of five barges, crucial for coastal transporters, enabling the efficient transportation of goods and equipment.
The company’s successful IPO and the impressive market debut have positioned Arvind and Company Shipping Agencies as a promising player in the maritime and hospitality sectors, drawing significant attention from investors and industry enthusiasts alike.
