Western Carriers IPO: 4.83 Times Oversubscribed

IPO of Western Carriers subscribed 4.83 times

The initial public offering (IPO) of Western Carriers (India) Ltd, which began on September 13, has now reached its third day of bidding as of September 17.

The IPO, valued at Rs 493 crore, received 4.83 times the subscription on the second day, with bids totaling 10,08,87,375 shares against the 2,08,68,467 shares available, according to NSE data.

Key Dates for the Western Carriers India IPO:

– Subscription Period: September 13 to September 19 (revised due to the September 18 holiday).
– Share Allotment Date: Expected on September 19.
– Listing Date: Shares are anticipated to be listed on both BSE and NSE on September 23.

The highly anticipated IPO of Rs 492.88 crore has set its price band between Rs 163 and Rs 172 per share. By the end of the second day of bidding, the issue was oversubscribed 4.84 times overall. The retail portion of the offering was booked 7.33 times, the non-institutional investor (NII) segment was subscribed 5.36 times, and the Qualified Institutional Buyers (QIB) portion received only 0.03 times subscription.

Retail Individual Investors (RIIs) saw a subscription rate of 7.32 times, while the non-institutional investors’ quota was subscribed 5.35 times. The Qualified Institutional Buyers (QIB) category received just 3% of the total subscription.

As of September 17, 2024, the Grey Market Premium (GMP) for the Western Carriers India IPO stands at Rs 56. This suggests that shares are currently trading at a premium of Rs 56 in the grey market, reflecting strong investor interest.

It’s important to remember that GMP is an unofficial metric and can vary widely. Investors should perform thorough research and seek advice from a financial advisor before making any investment decisions.

Western Carriers IPO: 4.83 Times Oversubscribed- The allotment date for the Western Carriers India IPO is anticipated to be Friday, September 20, 2024. Following the ‘T+3’ listing rule, the IPO is expected to list on Tuesday, September 24, 2024.

On Thursday, Western Carriers (India) announced that it has secured Rs 148 crore from anchor investors.

The Kolkata-based company’s IPO is available for subscription at a price range of Rs 163-172 per share.

The IPO includes a fresh issue of equity shares totaling up to Rs 400 crore and an offer for sale (OFS) of up to 54 lakh equity shares valued at Rs 93 crore, offered by promoter Rajendra Sethia.

The proceeds from the fresh issue of the IPO will be allocated as follows: Rs 163.5 crore will be used to pay off debt, Rs 152 crore will be directed towards capital expenditures for purchasing commercial vehicles, shipping containers, and reach stackers, and the remaining funds will be applied to general corporate purposes. Key customers of Western Carriers include Tata Steel, Hindalco Industries, Vedanta, BALCO, HUL, Coca-Cola India, Tata Consumer Products, Wagh Bakri, Cipla, Haldia Petrochemicals, and Gujarat Heavy Chemicals, among others.

JM Financial and Kotak Mahindra Capital Company are serving as the book-running lead managers for the offering.

The equity shares of Western Carriers are set to be listed on both the BSE and NSE.

Western Carriers is recognized as India’s top private, multi-modal, rail-focused, asset-light logistics company. As of March 2024, it serves a diverse customer base of 1,647 clients across various sectors, including metals and mining, FMCG, pharmaceuticals, building materials, chemicals, oil and gas, and utilities.