Muted Debut: Western Carriers shares lists at ₹171 on NSE, 0.58% down from its IPO price of ₹172

Western Carriers (India) IPO listing: Western Carriers (India) IPO listing: Shares of Western Carriers (India) made a robust debut on the bourses today. It listed at ₹171 on NSE, a discount of half a percent from its IPO price of ₹172. Meanwhile, on BSE, it listed at ₹170, a discount of 1.16 percent from issue price.

The initial public offering (IPO), valued at ₹492.88 crore, was open for subscription from September 13, 2024, to September 19, 2024, with a price band set in the range of ₹163-172 per share.

During the 3 days of bidding the IPO closed with a robust demand, with the issue subscribed 31.69 times overall. The IPO received bids for 63.57 crore shares against the 2 crore shares on offer. The retail investor segment saw a subscription of 26.92 times, while the Non Institutional Investors (NII) category was booked 46.68 times. Meanwhile, the Qualified Institutional Buyers (QIBs) quota was bid 28.81 times.

About the IPO

The issue was a combination of fresh issue of 2.33 crore shares aggregating to ₹400.00 crores and offer for sale of 0.54 crore shares aggregating to ₹92.88 crores. The minimum application size for retail investors is set at 87 shares, requiring an investment of ₹14,964.

The net proceeds from the Fresh Issue, after deducting the expenses related to the offer, are planned to be utilized for several purposes. These include the prepayment or scheduled repayment of a portion of the company's outstanding borrowings. Additionally, the funds will be allocated to capital expenditure needs, specifically for the purchase of commercial vehicles, specialized 40-foot containers, standard 20-foot shipping containers, and reach stackers. A portion of the proceeds will also be directed towards general corporate purposes.

JM Financial Limited and Kotak Mahindra Capital Company Limited are the book running lead managers of the Western Carriers (India) IPO, while Link Intime India Private Ltd is the registrar for the issue.

About the Company

Western Carriers (India) Limited is a multi-modal, rail-centric, 4PL asset-light logistics provider. Founded in March 2011, the company offers a broad range of customizable logistics solutions, covering road, rail, water, and air transport, along with a suite of value-added services. It serves various sectors, including metals, FMCG, pharmaceuticals, chemicals, engineering, oil and gas, and retail. The company's clientele features prominent names such as Tata Steel, Hindalco, JSW Steel, HUL, and Cipla, among others.

Western Carriers also provides chartering services for international destinations, stevedoring at Indian ports, and coastal cargo movement within India. It leverages an asset-light model, combining rail and road transportation, and manages supply chains for increased imports, exports, and production for leading metals and resource companies. The company saw its revenue grow by 3 percent and its profit after tax (PAT) rise by 12 percent in the fiscal year ending March 31, 2024, compared to the previous year.