Western Carriers IPO

IPO subscribed 2.67 times, RII led, QIB lagged

Western Carriers (India)’s IPO has been subscribed 2.67 times as of Monday, the second day of bidding. The offering received bids for 5,57,20,194 shares, compared to the 2,08,68,467 shares available. Retail individual investors (RIIs) led the subscriptions, with their portion oversubscribed 4.27 times. Non-institutional investors (NIIs) subscribed 2.43 times, while qualified institutional buyers saw just 1% subscription.

Before the IPO launch, the Kolkata-based company raised ₹148 crore in its anchor round. The IPO, which runs from September 12 to 18, is priced between ₹163 and ₹172 per share. The ₹492.8 crore offering includes a fresh issue of shares worth ₹400 crore and an offer for sale (OFS) of 54 lakh shares worth ₹93 crore by promoter Rajendra Sethia. The raised funds will be used for debt repayment, capital expenditure, and general corporate purposes. JM Financial and Kotak Mahindra Capital Company are managing the offer.

Western Carriers is a leading private logistics company in India, specializing in multimodal, rail-focused, and asset-light operations. As of March 2024, it serves a diverse range of 1,647 customers across sectors such as metals and mining, FMCG, pharmaceuticals, building materials, chemicals, oil and gas, and utilities.

Notable clients include Vedanta, Tata Steel, Hindalco Industries, BALCO, Coca-Cola India, HUL, Tata Consumer Products, Cipla, Wagh Bakri, Gujarat Heavy Chemicals, and Haldia Petrochemicals.

For the financial years:

– FY22: Revenue was ₹1,470 crore with a net profit of ₹61.1 crore.
– FY23: Revenue increased to ₹1,633 crore, and net profit rose to ₹71.5 crore.
– FY24: Revenue further grew to ₹1,685 crore, with net profit reaching ₹80.3 crore.

The company’s equity shares are set to be listed on both the BSE and NSE.