ABS Marine Services Limited IPO

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Originally incorporated as ABS Marine Services Private Limited in 1992, the company rebranded as ABS Marine Services Limited after converting to a public limited company in October 2023. Their diligent promoter, Capt. P B Narayanan, who has over four decades of experience in the shipping industry, laid the foundation for their business.

Operations and Fleet

i. Vessel Management: Their company started with two offshore vessel management services and now operates five owned vessels: two advanced offshore vessels catering to the oil and gas sector, and three harbor crafts serving Indian ports.

ii. Chartered and Managed Vessels: They manage one long-term chartered multipurpose offshore vessel in the oil and gas sector and provide comprehensive ship management for 12 vessels owned by government bodies, public sector units, private firms, and port authorities. Their crew management services are extended to an additional 24 ships, including oil and gas tankers, bulk carriers, passenger vessels, and high-speed crafts.

Fleet Composition Their fleet includes a wide range of state-of-the-art vessels:

i. DP-2 multipurpose offshore supply vessels                ii. Anchor handling towing supply vessel
iii. Ocean research vessels (multi-disciplinary)            iv. Coastal research vessels
v. Fishery oceanographic research vessel                       vi. Bulk carriers, gas tankers, and oil tankers
vii. Passenger vessels and high-speed crafts                viii. Harbor crafts

Clientele and Revenue Their clientele primarily includes government entities, large industrial organizations, public sector undertakings, port authorities, and private companies. They have 10 strategic contracts with government agencies, and a significant contract with the Ministry of Earth and Science (MOES) contributes approximately 23.50% of their revenue from operations.

Conclusion With a diversified fleet, in-house management capabilities, and strong government partnerships, they continue to establish themselves as a key player in the marine services industry.

Objects of the ABS Marine Services Limited IPO:

The Company proposes to utilise the Net Proceeds towards funding the following objects i. Acquistion of off shore vessel ii. Funding the working capital requirements of the Company; and iii. General corporate purposes.
DRHP of ABS Marine Services Limited IPO
RHP of ABS Marine Services Limited IPO

ABS Marine Services Limited IPO Details:

Open Date: May 10 2024
Close Date: May 15 2024
Total Shares: 6,550,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 96.29 Cr.
Lot Size: 1000 Shares
Issue Price: ₹ 140 - 147 Per Equity Share
Listing At: NSE Emerge
Listing Date: May 20 2024

Promoters And Management:

Capt. P B Narayanan is the Managing Director of the Company. A Master Mariner with experience of more than 15 years at sea and 5 years in command of various types of Commercial Vessels. Having honed his Operational and Ship Management skills he moved ashore and joined a Ship Management Company where he further refined his managerial and commercial acumen. He has more than four decades of experience in the Marine Industry. As a course of natural progression, he setup ABS Marine Services in October 1992. With his vision, business ethics and expertise, the Company has grown manifold and is today in the forefront of Ship Management, Marine Services and Project Management. He was presented with the National Maritime award and Indywood Excellence Awards for his outstanding contribution to the Indian Shipping Industry. Capt. Jeevan Krishnan Sanjeevan is the Whole Time Director of the Company. A Master Mariner with 12 years sailing experience onboard various types of ships including, bulk carriers, oil tankers, gas carriers and offshore vessels, he joined ABS Marine Services in 2016 as Manager (Operations). He brings to the forefront his eye for detail and knowledge gained from sailing on various types of vessels. Shreelatha Narayanan is the Non- Executive director of the Company. She is a Post graduate Diploma holder in Special Education and has around 32 years of experience in managing the affairs of the Company. She has been actively involved with CSR activity even before the concept came to the fore. Her involvement in social service has fetched her the National Women Achievers Award in Social Service. She is also a B-link (Be the link) awardee for her service to children with learning disabilities.

Financials of ABS Marine Services Limited IPO:

Particulars ( In Lakhs )
2022
2023
2024
Revenue from Operations 5,785 9,522 11,813
Other Income 1,109 194 239
Total Revenue 6,893 9,716 12,052
Direct Expenses 4,051 7,185 7,751
Employees Benefit Expenses 460 532 585
Other Expenses 378 248 720
EBITDA 2,005 1,752 2,996
Depreciation & Amortisation 752 543 537
Finance Cost 239 150 166
EBIT 1,253 1,209 2,459
OPM (%) 29.08% 18.03% 24.86%
PBT 1014 1058 2293
Tax 242 258 347
PAT 772 800 1946
NPM (%) 11.19% 8.23% 16.15%
No.of Shares 245.5 245.5 245.5
EPS 3.14 3.25 7.92

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
ABS Marine Services Limited 118 19 7.92 18.5 147 361
Shipping Corporation of India 5,052 680 14.58 14.2 207 9,656
Seamec Limited 619 63 24.47 40.6 1,000 2,542
* All the data is as per FY24.

Recommendation on ABS Marine Services Limited IPO:

1. ABS Marine Services Limited is a comprehensive maritime services provider that specializes in offshore and harbor crafts, ship management, and crew management services. The conversion and subsequent name change reflect the organization's growth and expanded operational scope in the marine services sector. 2. Key Business Activities: Offshore Vessel Ownership and Management: i. The company owns and operates five vessels, including two advanced offshore vessels serving the oil and gas sector and three harbor crafts serving Indian ports. ii. They also have a long-term charter arrangement for a specialized multipurpose offshore vessel serving the oil and gas sector. Total Ship Management: ABS Marine manages 12 vessels on behalf of government agencies, public sector companies, private enterprises, and port authorities. Their expertise includes various vessel types, from research vessels to tankers and passenger crafts. Crew Management: The company offers crew management for 24 ships, including oil tankers, gas tankers, bulk carriers, passenger vessels, and high-speed crafts. This service ensures these ships operate smoothly with trained and qualified personnel. 3. Fleet Composition: ABS Marine’s fleet includes a variety of vessels, such as DP-2 multipurpose offshore supply vessels, anchor-handling towing supply vessels, oceanographic research vessels, bulk carriers, tankers, and harbor crafts. This diverse fleet enables them to serve a broad client base across different marine industries. 4. Market Position and Strategy: Integrated Operations: The company provides in-house commercial and vessel management services, enabling end-to-end control over vessel operations and ensuring seamless service delivery. Strategic Contracts: They hold ten strategic contracts with government agencies, contributing significantly to their revenue. One such contract with the Ministry of Earth Sciences (MOES) contributes to 23.5% of their revenue. 5. Competitive: i. The maritime industry is highly competitive, often dictated by regional vessel availability, pricing, and reliability. ABS Marine competes with prominent players like The Greatship Group, Samson Maritime Ltd, Shipping Corporation of India, Raj Shipping Agencies Ltd, and Seamec Limited. ii. Their competitive advantages include a reliable and reputable service offering, backed by strategic government contracts and a versatile, well-managed fleet. 6. The Revenue has Increased from Rs.57 Crores in FY22 to Rs.118 Crores in FY24. 7. The EBITDA has Increased from 20 Crores in FY22 to 30 Crores in FY24. 8. The PAT has Increased from 7 Crores in FY22 to 19 Crores in FY24. 9. As per FY24, CFO/EBITDA is 1.01, and EPS is 7.92, 10. Market Capitalization is 361 Crore & P/E is 18.54x based on FY24.

Lead Manager of ABS Marine Services Limited IPO:

  1. GYR CAPITAL ADVISORS PRIVATE LIMITED

Registrar of ABS Marine Services Limited IPO:

  1. Purva Sharegistry India Private Limited

Company Address:

ABS Marine Services Limited Flat No. 3, Anugraha Foundation No. 15, Valliammal Road Vepery, Chennai – 600007 Phone: 044-42914135 Email: cs@absmarine.com Website: http://www.absmarine.com/

Discussion on ABS Marine Services Limited IPO:

1 Comment

    anyone planning to apply ? how is LM track record & any gmp ?

    Reply

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