Shreyas Shipping locks in upper circuit on sale of businesses

The share price of Shreyas Shipping & Logistics was locked at an upper circuit on Wednesday after its board approved the sale of its businesses to Unifeeder ISC FZCO.

As per the agreement, the company would sell its containerized domestic coastal and Exim feeder shipping business to Unifeeder for a gross cash consideration of US$ 19 million, subject to adjustments on account of debt, cash, and working capital post the closing.

Unifeeder, through its Unifeeder ISC platform, will acquire three business units of Transworld Group, namely, Transworld Feeders FZCO, Avana Logistek Limited, and Transworld Feeders Pvt Ltd, which include the containerised Indian coastal and EXIM feeder shipping operations of Shreyas Shipping and Logistics Ltd, excluding vessels and bulk operations.

Shreyas has a market share of over 90 per cent in EXIM transshipment business and more than 52 per cent in the domestic container business. It is a preferred partner for most mainline ship operators for EXIM transshipment services at various Indian ports. The company runs a fleet of 13 ships, the largest on the Indian coast.

Speaking on the development, Ramesh S Ramakrishnan, the Chairman of Transworld Group and Shreyas Shipping & Logistics Limited said, “The acquisition of three of our portfolio companies will provide DP World and Unifeeder ISC, a robust platform to jointly deliver a more complete range of solutions to our customers.

The stock of Shreyas Shipping & Logistics was locked at its upper circuit of 5 per cent after which, the trading was suspended at Rs 94 per share, up by 4.85 per cent or Rs 4.35 per share. The stock’s 52-week high is Rs 105.20 and the 52-week low is Rs 35 on BSE.