IDFC PE sells entire 24% stake in Seaways Shipping to promoters

PE firm's decision to end tryst with Seaways comes in the wake of a delay in the company's IPO plans

Hyderabad-based shipping company Seaways Shipping and Logistics Limited (Seaways) has bought out the entire stake of 24 per cent held by IDFC Private Equity in the company essentially to facilitate the exit for the PE firm.

The PE firm's decision to end its 9-year tryst with Seaways comes in the wake of a delay in the company's IPO plans.

The company promoters had in fact filed the draft red herring prospectus (DRHP) in March, 2016 though they deferred the IPO plans owing to a down cycle in the shipping business. This has prompted the PE firm to seek another exit route.

In the last year's DRHP it was mentioned that IDFC PE will be offering to sell its entire 5.15 million shares held in the company.

Seaways did not disclose how much it had paid to buy back the stake from IDFC PE. However, it is understood that the PE firm has exited the company with a premium on its investment.

"The partnership between IDFC PE and Seaways over the past nine years has been mutually rewarding, and we thank them for their unstinted support and confidence in us," said Seaways chairman and managing director P V K Mohan.

While the IPO plans were put on hold due to a down cycle in shipping business, the company is confident of going public in the year 2018-19. It had generated a consolidated income of Rs 716 crore in the year ended March, 2015, and Rs 329 crore during the six month period ending September, 2016 as per the available information.

The 27-year-old integrated logistics service and solutions provider offers non-vessel operating common carrier services, ocean and air freight forwarding services, and bulk cargo handling services among other services.