SEAMEC signs MoA with ships & boats Oil Services, New Cairo, Egypt for USD 7,000,000 vessel purchase

MUMBAI : Seamec Ltd informed that the company has entered into a Memorandum of Agreement (MoA) with Ships & Boats Oil Services, New Cairo, Egypt for the purchase of vessel “Sea Diamond”, having IMO no. 9468865, Class: RINA, Year of Build – 2011 and Shipyard – ABG Surat Shipyard – Surat, India, Flag – Sierra Leone, Place of Registration – Freetown, GT/NT- 1922/647.

The purchase price of the vessel will be USD 7,000,000 (United States dollars seven million only) as per MoA. The acquisition will be around the second week of December 2023 upon completion of the required formalities.

Seamec is a company specializing in diving support vessels and dry bulk materials. They are actively expanding their fleet and market presence and recently secured a lucrative two-year contract valued at USD 32 million. The company anticipates a robust growth trajectory and expects to double its Indian oil demand by 2045. Seamec is currently reassessing its demerger plan.

Earlier, Seamec Ltd, one of India’s largest fleets of multi-functional vessels informed, that it has entered into a subcontract with its consortium partner in Pipeline Replacement Project (PRPVII) for taking up some subsea installation works of ONGC on a unit rate basis. The work scope will be executed over two working seasons that is till May 2024. The approximate total value of the contract at the maximum indicated quantity of scope of work shall be approximately Rs 80,77,90,775, exclusive of GST.

On Friday, shares of Seamec Ltd ended the trade session in the green, up 0.36 per cent to Rs 882.60 per share with an intraday high of Rs 905 and a low of Rs 872.05. The shares of the company saw a spurt in volume by more than 3.07 times on BSE.

SEAMEC Ltd owns and operates 4 multi-support vessels for the provision of diving services, manned and unmanned subsea operations and related activities. It has also diversified into main fleet shipping vertical by acquiring 3 bulk carriers of various sizes.

The company has a market cap of Rs 2,244 crore with a stock price CAGR of 31 per cent in 3 years. The stock gave 125 per cent in last 3 years and over 1,700 per cent in a decade. Investors should keep an eye on this multibagger Small-Cap stock under their radar.