Shreyas Shipping zooms 20% as board to mull delisting plan on May 24

The company said delisting proposal will provide the public shareholders an opportunity to realise immediate and certain value for their equity shares.

Shares of Shreyas Shipping & Logistics were locked in the 20 per cent upper circuit at Rs 312.60 on the BSE in Monday’s intra-day trade after the company said its board will meet on Wednesday, May 24 to consider a proposal for delisting of shares.

The company is the Indian flagged vessel owning unit of Transworld Group. In past four trading days, the stock tanked 23 per cent. It had hit a 52-week high of Rs 413 on August 25, 2022 and a 52-week low of Rs 212.20 on March 27, 2023.

Transworld Holdings Limited, the promoter of the company, expressed its intention to acquire all the equity shares of the Shreyas Shipping & Logistics that are held by public shareholders; and consequently voluntarily delist the equity shares of the company from the stock exchange where equity shares are presently listed i.e., BSE Limited and National Stock Exchange of India Limited by making a delisting offer.

As on March 31, 2023, the promoters held 70.44 per cent stake in Shreyas Shipping. Among public shareholders, resident individual investors held 24.03 per cent holding, and the remaining, 5.53 per stake are with the non-resident Indians, bodies corporate and others.

The proposed delisting would enable the members of the Promoter Group to obtain full ownership of the company, which in turn will provide enhanced operational flexibility. The delisting proposal will enhance the company's operational, financial and strategic flexibility including but not limited to corporate restructurings, acquisitions, exploring new financing structures, including financial support from the Promoter Group.

The delisting proposal will provide the public shareholders an opportunity to realise immediate and certain value for their equity shares, the company said on rationale for delisting proposal.

Meanwhile, in January-March quarter (Q4FY23), the company had posted 60 per cent year-on-year (YoY) decline in its consolidated profit after tax at Rs 18 crore, against Rs 45 crore in Q4FY22. Revenue from operations were down 29 per cent YoY to Rs 81 crore from Rs 115 crore in a year ago quarter. Reported earnings before interest, taxes, depreciation and amortization (Ebitda) margin contracted by 800 bps to 48 per cent from 56 per cent.

The company said container shipping markets continued to decline as compared to previous quarter on account of ongoing global geopolitical disruptions. Charter and freight levels have shown lowering trend.