Western Carriers India IPO Subscription Details on Day 3

17 Sep 2024 , 12:48 PM

Western Carriers (India) Ltd., a logistics company, launched its ₹492.88 Crore Initial Public Offering (IPO) on Friday. The subscription continued through Monday, the second day of bidding.

The price band for the IPO is set between ₹163 to ₹172 per share. At the time of writing on Day 3 of subscription, the IPO saw a 6.82 times subscription, the Non-institutional investors subscribed 8.03 times, while the retail individual investor (RII) segment saw 10.13 times subscription. The Qualified Institutional Buyer (QIB) category had 3% subscription.

Western Carriers is India’s largest private multi-modal, rail-focused, 4PL asset-light logistics company in terms of container volumes handled by private players in FY2023.

The IPO is open for public subscription from September 13 to September 18, with share allotment likely to be finalized on September 19. Shares are expected to list on BSE and NSE on September 23.

A day before the IPO, the company raised ₹148 Crore from anchor investors such as Aditya Birla Sun Life Insurance, Kotak Mahindra Life Insurance, and others, by allocating 85.97 lakh equity shares at ₹172 each.

The IPO includes a fresh issue of ₹400 Crore and an offer for sale (OFS) of 54 lakh equity shares worth ₹93 Crore by promoter Rajendra Sethia.

Proceeds will be used for debt repayment (₹163.5 Crore), capital expenditure for commercial vehicles, shipping containers, and stackers (₹152 Crore), and general corporate purposes. The minimum bid for investors is 87 equity shares and in multiples thereafter.

Western Carriers has a diverse customer base across sectors like metals, FMCG, pharmaceuticals, chemicals, and oil. Key clients include Tata Steel, Hindalco, HUL, Cipla, Coca-Cola India, and more.

The company’s FY2024 revenue stood at ₹1,685 Crore, with a profit after tax (PAT) of ₹80 Crore. JM Financial and Kotak Mahindra Capital are the lead managers for the IPO, and shares will be listed on BSE and NSE.