Best News Network

This SME shipping company’s stock is up more than 2,900% over issue price





Shares of Knowledge Marine & Engineering Works (KMEW) rallied 11 per cent in Monday’s intra-day trade and hit a new high of Rs 1,129.85 on the BSE after the company said it has received an additional work order of Rs 16.50 crore from Dredging Corporation of India (DCI) for the work of ‘Capital Dredging at Mangrol Fishing Harbour – Phase III Part -B’.


Earlier in May 2022, KMEW had received one-year dredging contract worth Rs 67.85 crore from DCI for its Mangrol Fishing Harbour facility for capital dredging in hard rock.


The ongoing work is 50 per cent complete and on December 30, 2022, KMEW received an additional work order of Rs 16.50 crore from DCI under the original contract, the company said in exchange filing.


The additional work order increases the target estimated dredging quantity from 110,150 Cubic Meters to 136,937 Cubic Meters which is an increase of 24 per cent in the original work order. The additional dredging work will be carried out at the same rates, terms and conditions of the original contract. KMEW is fully equipped to execute the additional work with the equipment present at Mangrol Site, the company said.


With today’s rally, the stock of the shipping company has zoomed 2,953 per cent from its issue price of Rs 37 per share. During the financial year 2020-21, the KMEW had come up with its initial public offer (IPO). The IPO lot size was 3,000 shares and the minimum order quantity was 3,000 shares at the rate of Rs 37 per share. The company got listed on BSE SME platform on March 22, 2021.


In the past one year, the stock has rallied 653 per cent as compared to 15.5 per cent rise in the S&P BSE Sensex. At 10:41 AM, it was trading 10 per cent higher at Rs 1,120, as compared to 0.45 per cent rise in the benchmark index.


KMEW provides multiple marine engineering solutions across dredging and port ancillary craft services. Dredging services included the removal of sediments and debris from oceans and harbors to create navigable waterways for shipping traffic at ports.


Port Ancillary services include chartering/hiring, operation and maintenance of marine crafts such as Pilot Boats, Survey Boats, Mooring Launches, Speed Patrol Boat and carrying out repair and refit services of Marine crafts and marine infrastructure. Clients include the Ministry of External Affairs, Deendayal Port Trust, Dredging Corporation of India, Haldia Port Trust, Kolkata Port Trust, Paradip Port Trust and Visakhapatnam Port Trust.


Meanwhile, the board of KMEW, on November 14, 2022 had approved the allotment of 565,000 equity shares of face value Rs 10 each of the company at an issue price of Rs 700 per equity share on preferential basis for Rs 39.55 crore.


The board approved allotment of 200,000 shares of Ashish R Kacholia and 30,000 shares to Vaibhav R Kacholia. The board also approved allotment of 252,500 shares to Mrs Vanaja Sundar Iyer and around 35,000 shares to Shiv Sehgal, the exchange filing showed.


KMEW is currently trading on BSE SME Platform under the M group. The SME platform of the exchange is intended for small and medium-sized companies with a high growth potential. The SME platform of the exchange is open for SMEs whose post-issue paid-up capital has less than or equal to Rs 25 crore.


KMEW in its FY22 annual report said that the Indian dredging and marine time industry is likely to experience significant expansion in the coming years. The government’s plans to create new waterways and ports, as well as upgrade and expand the current ports, will account for the majority of this expansion.


The demand for dredging is estimated to reach about 170 million cubic metres in the coming years at existing major ports. In addition, at least eight dredging projects are being considered at existing non-major ports, with an estimated 18 million cubic metres of material to be dredged as part of these projects.


Furthermore, the six new ports planned under Sagarmala will create opportunities in the dredging market. The identification of 106 additional national waterways has created significant potential. Over 200 million cubic metres of dredging volume has been assessed for the next decade for the existing five waterways as well as the 32 new waterways that have been identified as viable for development. Given this increase in dredging requirements, the sector presents ample opportunities, the company said.


Stay connected with us on social media platform for instant update click here to join our  Twitter, & Facebook

We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.

For all the latest Business News Click Here 

 For the latest news and updates, follow us on Google News

Read original article here

Denial of responsibility! NewsAzi is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.