Essex Marine Limited, a Kolkata-based processor and exporter of marine fish and shrimp, launched its SME IPO on August 4, 2025, with a total issue size of ₹23.01 crore, entirely through a fresh issue of 42.62 lakh shares at a fixed price of ₹54 per equity share.

The company exports frozen seafood under the brand name “Essex” to China, Europe, and Israel, specialising in vannamei shrimp and other processed marine products. Backed by 16+ years of experience, Essex Marine has carved out a niche in value-added seafood exports.

IPO Details and Listing Expectations

The IPO was open for subscription from August 4 to August 6, 2025. The minimum lot size for retail investors was 2 lots or 4,000 shares, amounting to ₹2,16,000. The tentative allotment date is August 7, and listing is expected on August 11, 2025, on the BSE SME platform.

Despite having KHANDWALA SECURITIES LIMITED as the lead manager and SKYLINE FINANCIAL SERVICES as the registrar, Grey Market Premium (GMP) for Essex Marine IPO stands at ₹0, implying no premium or expected listing gain. Gretex Share Broking is the market maker for the issue.

Subscription Status: Mild Retail Interest

By the close of the IPO on August 6, Essex Marine Limited saw 2.82x overall subscription, which is moderate for an SME IPO. This includes participation from retail and HNI categories, but the absence of GMP and low excitement in the grey market raise concerns.

Company Profile and Business Strength

Essex Marine is led by Debashish Sen, an industry veteran who brings extensive knowledge of India’s seafood export ecosystem. Under his leadership, the company has scaled up its operations and is now looking to expand its processing capabilities.

Their core processing facility is located in West Bengal, and the IPO funds will be directed towards:

1. ₹2.47 crore to expand peeling capacity at the existing unit.

2. ₹78 lakh for adding a “Ready-to-Cook” blanching section.

3. ₹6 crore for working capital needs.

4. ₹7.15 crore for repayment of secured loans.

5. ₹3.43 crore for general corporate purposes.

This indicates a clear plan to scale operations, reduce debt, and improve product offerings.

Financial Performance: Impressive Growth but Concerns Remain

Revenue and Profit Growth

The company has demonstrated strong financial growth over the last three fiscal years:

• FY25 Revenue: ₹39.93 crore

• FY24 Revenue: ₹21.11 crore

• FY23 Revenue: ₹23.59 crore

Profit after Tax also grew from ₹2.02 crore in FY23 to ₹4.66 crore in FY25, showing significant improvement in bottom-line performance.

EBITDA and Margins

• FY25 EBITDA: ₹9.43 crore

• FY24 EBITDA: ₹4.99 crore

• FY23 EBITDA: ₹6.01 crore

The upward trend reflects better cost management and higher margins, likely due to enhanced value addition.

Valuation Analysis: Is the IPO Fairly Priced?

Essex Marine’s pre-issue EPS is ₹4.24, while post-issue EPS drops to ₹3.06, leading to a P/E ratio of 17.67x post-issue. The industry average P/E is 19x, indicating that the IPO is neither undervalued nor expensive, but fairly priced based on peer comparisons.

The Return on Capital Employed (ROCE) stands at 18.87%, and Return on Equity (ROE) is 30.40%, which are strong profitability indicators. The Return on Net Worth (RoNW) at 26.39% also reflects healthy financials.

Despite these figures, listing gains may not materialize given the current zero GMP and mild investor enthusiasm.

IPO GMP and Listing Outlook: A Flat Opening Likely

As of August 6, the Grey Market Premium (GMP) for Essex Marine IPO remained at ₹0, showing no trading activity or premium in the unofficial market. This may indicate that the stock could list close to its issue price of ₹54, or even slightly below, depending on broader market sentiment.

Investors must note that GMP is unofficial and unregulated, and should not be the only factor in investment decisions.

Final Verdict: Should You Invest in Essex Marine IPO?

The company’s growth story, profitability, and expansion roadmap are impressive. However, the high entry price (₹2.16 lakh minimum investment), zero GMP, and uncertain listing gains make this IPO unsuitable for short-term investors seeking immediate profits.

For long-term investors, Essex Marine could be a viable bet given its solid business model and market potential in seafood exports. However, due diligence and risk appetite should be considered.

Recommendation

Given the valuation, current GMP trends, and the subscription status:

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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