Shares of a logistics company rose 7 per cent to reach an intraday high of ₹ 391.20 apiece on the National Stock Exchange (NSE). Its shares settled at ₹ 375.25 apiece. This happened after the upward revision of its indicative price for the delisting of its shares. 

Shreyas Shipping & Logistics Ltd owns and operates vessels for container feeder operations between Indian and international container trans-shipment ports. The company is India’s first container feeder owning and operating company. It has diversified into logistics, transportation, warehousing, and distribution services. 

According to an exchange filing the company’s promoter Transworld Holdings Ltd (THL) has provided its intention to acquire SSL’s shares from investors at a revised indicative price of ₹ 375 apiece, which is approximately 11 per cent higher than the previous indicative price of ₹ 338.00. 

THL received in-principle approval for the proposed delisting of SSL from Indian stock market exchanges BSE and NSE on September 7. The proposed delisting offer was approved by the board of directors on May 24, 2023, and by shareholders of SSL vide a special resolution on July 03, 2023. 

Sivaswamy Ramakrishnan, Chairman of the Transworld Group said that the proposed transaction is fully aligned with the robust strategy pursued over the years. It will transform the Group’s credit profile and offer a fair exit price to minority shareholders. He added that it has the potential to fundamentally reposition the company’s business for the future. 

According to the applicable Indian laws, SSL can be delisted if an acquirer acquires at least 90 per cent of the total equity shares issued by the company and upon the satisfaction of certain other requirements. Currently, THL along with its affiliates holds around 1.55 crore equity shares aggregating to 70.44 per cent of the paid-up equity share capital of SSL. 

Once the minimum tender condition and other regulatory approvals are met, the purchase of the equity shares of SSL will be carried out in accordance with the Delisting Regulations at a price to be determined through the reverse book-building process, the company said. 

The company’s share price increased by 57.57 per cent in the past six months and by 438 per cent in the past three years. Therefore, if an investor had invested ₹ 1 lakh in the company’s shares three years ago, the value of their holdings would have been ₹ 5.38 lakhs today! 

With a market capitalization of ₹ 831 crores, SSL is a micro-cap company. It has an ideal return on equity of 16.51 per cent and an ideal debt-to-equity ratio of 0.61. Its shares were trading at a price-to-earnings ratio (P/E) of 6.67, which is higher than the industry P/E of 5.72, indicating that the stock might be overvalued as compared to its peers. 

Written by Simran Bafna 


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