Western Carriers IPO: GMP, subscription status to review. Should you apply as bidding ends today?

Western Carriers IPO: Bidding for the initial public offering (IPO) of Western Carriers (India) Limited ends on 19th September 2024, i.e. today. As per the Western Carriers IPO subscription status, the public issue has received a strong response from the Indian primary market investors. After the aggressive US Fed rate cut of 50 bps, market observers expect a strong response by investors to the book-build issue that aims to raise ₹492.88 crore from the primary market.

Western Carriers IPO GMP today

Meanwhile, the grey market continues to signal strong bias on Western Carriers IPO. According to stock market observers, Western Carriers IPO GMP (grey market premium) today is ₹51, which is Re 1 higher than Wednesday's GMP of ₹50. Market observers believe that grey market sentiments may improve today as the US Fed has announced a 50 bps rate cut, which may fuel the bulls' sentiment in the secondary market. They also said that solid sentiments in investors' secondary and positive response may attract robust subscriptions on Thursday.

Western Carriers IPO subscription status

By 3:00 PM on day 5 of bidding, the public issue had been subscribed 25.84 times, the retail portion of the book build issue had been booked 24.77 times, the NII segment had been filled 42.71 times, and the QIB portion had been subscribed 14.92 times.

Western Carriers IPO review

On whether one should apply for the public issue or not, Arun Kejriwal, Founder of Kejriwal Research and Investment Services, said, "There is a mismatch in the financials and the claims made by the company in its RHP and roadshow. However, the Indian primary market is overcrowded, and the issue has received a decent response from investors in the first four days of bidding. Hence, high-risk investors can apply for listing gain only to the book build issue.

Choice Broking has also assigned a 'subscribe' tag to the book build issue, saying, "At a higher price band, Western Carriers India is demanding an EV/sales multiple of 1 time, which is at a discount to peer average of 2.4 times. Thus, the issue is attractively priced. Considering its market position among the private players and improving outlook of rail logistics post partial/full commencement of DFCs, we believe it is well-positioned to benefit from the expansion in the multi-modal freight transportation."

Western Carriers IPO details

The company has fixed Western Carriers IPO price band at ₹163 to ₹172 per equity share. The book build issue combines fresh shares and Offer for Sale (OFS). It aims to raise ₹492.88 crore, of which ₹400 crore is aimed at issuing fresh shares. In the wake of the 'T+3' listing rule, Western Carriers IPO allotment date is most likely on 20th September 2024, i.e. tomorrow, whereas Western Carriers IPO listing date is most likely on 24th September 2024, i.e. on Tuesday next week.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.