The Securities and Exchange Board of India (Sebi) gave its approval to Seaborne logistics firm Seven Islands Shipping to raise Rs 600 crore through an initial share-sale.

As per the reports, the public issue comprises a fundraise through fresh issue amounting to Rs 400 crore, and an offer for sale aggregating up to Rs 200 crore.

The company will raise up to Rs 100 crore will be raised by FIH Mauritius Investment under the offer for sale (OFS). Under the same OFS, it will also raise up to Rs 85.64 crore and up to Rs 14.35 crore by Thomas Wilfred Pinto, and Leena Metylda Pinto respectively.

Seaborne logistics company had filed preliminary papers with Sebi in February and obtained its observation on March 22, latest update with the regulator showed.

Sebi’s observation is very necessary for any company to launch public issues like initial public offer (IPO), follow on public offer (FPO) and rights issue.

The company will utilise the net proceeds raised from the fresh issue to acquire a large crude carrier vessel and one medium-range vessel from the secondary market at an estimated expense of Rs 352.43 crore.

Earlier, the company tried to tap the capital markets in 2017.

Reports suggested that the company has kept 50 per cent of the offer reserved for qualified institutional buyers. While it has reserved 15 per cent for non-institutional investors and 35 per cent will be reserved for retail investors.

The company started its operations in 2003 with one vessel and currently has 20 Indian-flagged and Indian-owned liquid cargo vessels with a total deadweight tonnage capacity of 1,105,682 MT. Over the past 18 years, the company has acquired 40 vessels and sold 20 vessels.