Dear Members,

We have released 23rd May’23: Special situation opportunity on the proposed delisting of shares of Shreyas Shipping & Logistics (NSE Code – SHREYAS). The same has also been produced below. For details and other updates, please log into the website at the following link –

Note: For any queries, mail us at [email protected]

Date: 23rd May’23

CMP – 330.55 (BSE); 331.35 (NSE)

Rating – Positive – 4% weightage; this is not an investment advice (refer rating interpretation at the end)


Shreyas Shipping & Logistics (NSE – SHREYAS)

Shreyas was incorporated in 1988 by late Mr. R Sivaswamy to own and operate vessels for container feeder operations between Indian and international container trans-shipment ports.

The company is one of the leading shipping companies in India, with strong legacy of more than three decades in owning and operating ships.

De-listing Offer from the Promoters

On 21st May’23, there was an initial public announcement on behalf of the promoters expressing their intent to acquire all the equity shares held by the public shareholders of the Company and voluntarily delist the Equity Shares from the Stock Exchanges.

The promoters hold 70.44% stake in the company.

The Board of Directors will meet on 24th May’23 to approve/reject the delisting proposal and consider other matters related to the same.

Important points with respect to the company

Shreyas has a fleet of 14 vessels (12 container and 2 dry-bulk [DB])). The fleet has a total capacity of 26,085 TEU, for container vessels, and gross registered tonnage of 3,21,500 metric tonnes.

The company recently acquired three container vessels as replacement for three of its ageing vessels.

The average fleet age has reduced to 19.1 years from 22 years with the acquisition of three new vessels.

The company has chartered all its 12 container vessels under the framework chartering agreement (FCA) to Transworld Feeders Pvt Ltd (TFPL). The two DB vessels purchased in fiscal 2022 have been chartered externally.

For FY 23, the company registered sales of Rs 484 crore and PBT of Rs 199 crore. The last 2 years were good for the company on the back of higher freight rates.

At the end of Mar’23, the net worth of the company was Rs 819 crore against borrowings of Rs 498 crore. Further, the company had unencumbered cash and bank balances of Rs 96 crore as on March 31, 2023, and other lien marked FDs of Rs 55 crore.

Rationale behind this opportunity

The current market cap of Shreyas is around Rs 725 crore against book value of Rs 819 crore.

In the last 3 years, the stock scaled highs of 400 odd levels while back in Jan’18, it even scaled highs of 600.

Unlike a lot of other delisting cases, Shreyas is fundamentally strong and has been a consistent dividend paying company.

While the company is yet to announce the floor price, we expect it to be around 260 odd levels.

In the past many de-listing cases, shareholders have tendered shares at 50-100% + premium to the floor prices and in some of the cases promoters accepted such prices.

In delisting cases, it’s difficult to predict as to what the discovered price will be and whether the promoters will accept the price or not.

However, here again, we would not like to participate in the reverse book building (RBB) and rather take advantage of the appreciation in the stock price (if at all) in the run up to RBB.

We expect the downside to be capped at around 250 per share.


We are still some steps away from the reverse book building; the Board’s approval is yet to come through and thereafter the company will have to seek the shareholders’ approval.

Earlier, there were not many rejections by shareholders; however, in the past 2-3 years we have seen a few cases of rejection by shareholders.

If the Board or the shareholders reject the proposal, there would be a rush to exit from the stock and one may not be able to exit before the stock has corrected by 15-25%.

Last 2 financial years were good for the company on the back of higher freight rates; since then, freight rates have come down and the company has taken on additional debt for the acquisition of new vessels.


Disclosure: I do not have any holding in Shreyas Shipping & Logistics.


Best Regards,

Ekansh Mittal
Research Analyst  
Ph.: +91-727-5050062, Mob: +91-9818866676
Email: [email protected]


Rating Interpretation

Positive – Expected return of ~15% + on annualized basis in medium to long term for investment recommendations and in short term for Special situations
Neutral – Expected Absolute return in the range of +/- 15%
Negative – Expected Absolute return of over -15%
Coverage closure – No further update on the stock
% weightage – allocation in the subject stock with respect to equity investments

Short term – Less than 1 year
Medium term – Greater than 1 year and less than 3 years
Long term – Greater than 3 years


Research Analyst Details

Name: Ekansh Mittal     Email Id: [email protected]    Ph: +91 727 5050062

Analyst ownership of the stock: No

Details of Associates: Not Applicable

Analyst Certification: The Analyst certify (ies) that the views expressed herein accurately reflect his (their) personal view(s) about the subject security (ies) and issuer(s) and that no part of his (their) compensation was, is or will be directly or indirectly related to the specific recommendation(s) or views contained in this research report.

Disclaimer: (here in referred to as Katalyst Wealth) is the domain owned by Ekansh Mittal. Mr. Ekansh Mittal is the sole proprietor of Mittal Consulting and offers independent equity research services to investors on subscription basis. SEBI (Research Analyst) Regulations 2014, Registration No. INH100001690

Address – 7, Panch Ratan, 7/128, Swaroop Nagar, Kanpur – 208002, Contact No. – +91-7275050062

Compliance Officer – Mr. Ekansh Mittal, +91-9818866676, [email protected]

Grievance Redressal – Mittal Consulting, [email protected], +91-9818866676, +91-7275050062

“Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors”.

Performance numbers do not include the impact of transaction fee and other related costs. Past performance does not guarantee future returns.

“Investment in securities market are subject to market risks. Read all the related documents carefully before investing.”

The views expressed are based solely on information available publicly and believed to be true. Investors are advised to independently evaluate the market conditions/risks involved before making any investment decision

A graph of daily closing prices of securities is available at (Choose a company from the list on the browser and select the “three years” period in the price chart

This report is for the personal information of the authorized recipient and does not construe to be any investment, legal or taxation advice to you. Ekansh Mittal/Mittal Consulting/Katalyst Wealth is not soliciting any action based upon it. This report is not for public distribution and has been furnished to you solely for your information and should not be reproduced or redistributed to any other person in any form. This document is provided for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. Ekansh Mittal or any of its affiliates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Neither Ekansh Mittal, nor its employees, agents nor representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost revenue or lost profits that may arise from or in connection with the use of the information. Ekansh Mittal/Mittal Consulting or any of its affiliates or employees do not provide, at any time, any express or implied warranty of any kind, regarding any matter pertaining to this report, including without limitation the implied warranties of merchantability, fitness for a particular purpose, and non-infringement.

The recipients of this report should rely on their own investigations. Ekansh Mittal/Mittal Consulting and/or its affiliates and/or employees may have interests/ positions, financial or otherwise in the securities mentioned in this report. Mittal Consulting has incorporated adequate disclosures in this document. This should, however, not be treated as endorsement of the views expressed in the report.

We submit that no material disciplinary action has been taken on Ekansh Mittal by any regulatory authority impacting Equity Research Analysis.

Disclosure (SEBI RA Regulations)

Whether the research analyst or research entity or his associate or his relative has any financial interest in the subject company/companies and the nature of such financial interest – No

Whether the research analyst or research entity or his associates or his relatives have actual/beneficial ownership of 1% or more securities of the subject company (at the end of the month immediately preceding the date of publication of the research report or date of the public appearance) – No

Whether the research analyst or research entity or his associate or his relative has any other material conflict of interest at the time of publication of the research report or at the time of public appearance – No

Whether it or its associates have received any compensation from the subject company in the past twelve months – No

Whether it or its associates have managed or co-managed public offering of securities for the subject company in the past 12 months – No

Whether it or its associates have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past 12 months – No

Whether it or its associates have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past 12 months – No

Whether the subject company is or was a client during twelve months preceding the date of distribution of the research report and the types of services provided – No

Whether the research analyst has served as an officer, director or employee of the subject company – No

Whether the research analyst or research entity has been engaged in market making activity for the subject company – No