Essex Marine Ltd, a Kolkata-based seafood processing and export company, has launched its Initial Public Offering (IPO) on the BSE SME platform. The IPO, which opened for subscription on August 04, 2025, is a Fixed Price Issue valued at ₹23.01 Crores, consisting entirely of a Fresh Issue of 42.62 lakh equity shares at a fixed price of ₹54 per share.

With over 16 years of experience in the seafood industry, Essex Marine Ltd exports processed fish and shrimp under the brand name “Essex”, targeting key global markets like China, Europe, and Israel. The company’s focus on value-added seafood has helped it carve out a presence in the competitive global seafood export segment.

Despite a solid business foundation and a reasonable expansion strategy, the IPO has received mixed market sentiment with zero Grey Market Premium (GMP) reported before the listing. This has led to low enthusiasm among short-term investors seeking listing gains.

Issue Details and Listing Plan

• IPO Type: Fixed Price Issue

• Issue Size: ₹23.01 Crores

• Share Price: ₹54 per equity share

• Shares Offered: 42.62 lakh

• Lot Size: 2,000 shares

• Minimum Investment: 4,000 shares (2 lots) = ₹2,16,000

• Market Capitalization at Upper Band: ₹82.41 Crores

• IPO Open/Close: August 04 to August 06, 2025

• Allotment Date: August 07, 2025

• Listing Date: Tentatively August 11, 2025

• Stock Exchange: BSE SME

IPO Objectives

The net proceeds from the IPO will be used as follows:

1. ₹2.48 Crores for expanding existing peeling capacity at its West Bengal processing unit.

2. ₹0.78 Crores for setting up a ready-to-cook section with blanching capabilities.

3. ₹6.00 Crores for meeting working capital requirements.

4. ₹7.15 Crores for partial repayment of secured borrowings.

5. ₹3.43 Crores for general corporate purposes.

This strategic allocation of funds indicates the company's focus on scaling up operations and improving profitability through cost efficiency and capacity expansion.

Company Overview and Business Model

Essex Marine processes a range of marine and aquaculture seafood, particularly vannamei shrimp, a key export product. The company has built its export business with customers in high-demand markets where Indian seafood enjoys strong acceptance. The firm relies on frozen and semi-processed offerings, which are often more stable in terms of shelf life and pricing.

Its brand "Essex" is relatively well-known in its export markets, and its value-added seafood is aimed at food processing companies and large distributors.

Management and Leadership

The company is led by Debashish Sen, Promoter and Managing Director, who brings extensive experience in seafood processing and international trade. His leadership has helped the company expand its operations and maintain stable export demand even during challenging periods like the pandemic. The company’s Key Managerial Personnel (KMPs) are well-versed in the technical and financial aspects of the seafood industry.

Financial Performance

Revenue and Profit Growth

• FY 2025: Revenue of ₹39.93 Crores, EBITDA ₹9.43 Crores, PAT ₹4.66 Crores

• FY 2024: Revenue of ₹21.11 Crores, EBITDA ₹4.98 Crores, PAT ₹1.82 Crores

• FY 2023: Revenue of ₹23.59 Crores, EBITDA ₹6.01 Crores, PAT ₹2.03 Crores

The company has shown strong growth in FY25, both in revenue and profitability. The growth in EBITDA and PAT is a positive indicator of improving operational efficiency.

Key Ratios

• Pre-Issue EPS (FY24): ₹4.24

• Post-Issue EPS (FY24): ₹3.06

• Pre-Issue P/E: 12.73x

• Post-Issue P/E: 17.67x

• Industry P/E: ~19x

• ROCE (FY24): 18.87%

• ROE (FY24): 30.40%

• RoNW: 26.39%

These metrics show that the IPO is reasonably priced, though slightly above the average valuations for listing benefits. The company’s Return on Equity (ROE) and Return on Capital Employed (ROCE) are respectable, indicating efficient capital use.

IPO Subscription Status

As of 11:30 AM on August 04, 2025, the IPO is subscribed 0.08 times, showing slow initial investor response. The low GMP of ₹0 and modest subscription reflect investor uncertainty, possibly due to limited visibility in the public domain and cautious market sentiment.

Grey Market Premium (GMP) Status

• GMP as on July 31, 2025: ₹0

• Expected Listing Price: ₹54

• Listing Gain Indication: 0.00%

This suggests flat listing expectations. The GMP can fluctuate during the IPO window, but currently, there’s no strong market enthusiasm indicating listing profits.

Allotment & Listing Information

Investors can check the Essex Marine IPO allotment status on Skyline Financial Services Pvt Ltd’s website from August 07, 2025, onwards. To check:

1. Visit the IPO allotment portal.

2. Select “Essex Marine Limited” from the IPO list.

3. Enter your PAN, Application Number, or DP ID.

4. Click submit to see allotment status.

Investment Outlook

While Essex Marine Ltd is a growing seafood exporter, and its FY25 financials are promising, there are key concerns:

• Zero GMP shows weak sentiment from grey market traders.

• Listing gains are unlikely, and risk-averse investors may not find it attractive.

• Long-term value is possible, but short-term returns are uncertain.

• Minimum investment of ₹2.16 lakhs makes it inaccessible for many retail investors.

  Disclaimer
  This article is for educational and informational purposes only and does not constitute financial advice. Investment decisions should be based on individual risk tolerance and consultation with SEBI-registered advisors. Market conditions are volatile and subject to change. Neither the author nor the platform is responsible for losses arising from use of this information.

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