Fairfax India Holdings Corp, part of Canadian billionaire Prem Watsa’s Fairfax Holdings, on Friday announced that it has invested approximately $72.1 million (Rs 500 crore) for a significant minority stake in Seven Islands Shipping Ltd.
Fairfax executed the transaction through a direct subscription and secondary acquisition of Seven Islands shares. Following completion of the transaction, it now owns 41.4 per cent stake in the Indian shipping company, per a statement.
Seven Islands will use the proceeds of the direct subscription to expand its ocean-going fleet by acquiring additional vessels and for general corporate purposes, the statement added.
Captain Pinto, managing director, Seven Islands, said, “Fairfax India’s long-term orientation, decentralised management style and high standards of corporate governance will enable us to expand our operations and grow the business, thus creating value for all stakeholders. We will now expand our fleet with the objective of becoming one of the leading shipping companies in India.”
Mumbai-headquartered Seven Islands transports products along the Indian coast as well as in international waters. It owns 14 vessels with a total deadweight capacity of approximately 1 million tonnes.
Seven Islands had filed draft prospectus for an initial public offering (IPO) with the Securities and Exchange Board of India (Sebi) in September 2017. It received Sebi’s approval to float an IPO in November that year. The firm’s IPO approval, however, lapsed in November 2018.