Western Carriers IPO subscription details on day 2

16 Sep 2024 , 03:39 PM

Western Carriers (India) Ltd launched its initial public offering (IPO) on Friday, with bidding continuing into its second day on Monday. The IPO size is ₹492.88 Crore, and the price range is set between ₹163 to ₹172 per share.

At the time of closing on the second day, the IPO had received a 4.13 times subscription, with 8,62,02,036 shares bid against 2,00,59,070 shares available.

The non-institutional investor category saw a 4.03 times subscription, while retail investors (RIIs) subscribed 6.46 times, and QIBs received 1% subscription.

Western Carriers (India) is India’s largest private multi-modal logistics company with a focus on rail and 4PL services, based on FY2023 container volumes.

The IPO will remain open for subscription from September 13 to September 18, with the share allotment expected to be finalized on September 19, and the listing on BSE and NSE on September 23.

Prior to the IPO, Western Carriers raised ₹148 Crore from anchor investors, including Aditya Birla Sun Life Insurance, Kotak Mahindra Life Insurance, and Motilal Oswal MF, among others.

The company allotted 85.97 lakh equity shares to 15 funds at ₹172 per share, aggregating ₹148 Crore. The IPO includes a fresh issue of ₹400 Crore and an offer for sale (OFS) of 54 lakh shares worth ₹93 Crore by promoter Rajendra Sethia.

Proceeds from the IPO will be allocated as follows:

• ₹163.5 Crore for debt repayment.
• ₹152 Crore for capital expenditure on commercial vehicles, containers, and stackers.
• The remainder for general corporate purposes.

Western Carriers serves 1,647 clients across various sectors such as metals, FMCG, pharma, building materials, chemicals, oil & gas, and utilities as of March 2024. Major clients include Tata Steel, Hindalco Industries, Vedanta, BALCO, HUL, Coca-Cola India, and others.

For the fiscal year 2024, the company’s revenue from operations reached ₹1,685 Crore, with a profit after tax (PAT) of ₹80 Crore.

JM Financial and Kotak Mahindra Capital are the book-running lead managers for this issue. Western Carriers’ equity shares are proposed to be listed on both BSE and NSE.