Western Carriers Sets Price Band for Rs.493 Crore IPO Launching Sep 13

Kolkata-based logistics company Western Carriers (India) Ltd. has announced  gearing up for its  Rs.493 crore IPO launch on September 13, 2024. The price band is set between Rs.163 and Rs.172 per share, which will give the company a post-listing market capitalization of Rs.1,754 crore at the upper end.

IPO Breakdown & Bidding Details

The IPO includes a fresh issue worth Rs.400 crore and an Offer For Sale (OFS) by promoter Rajendra Sethia, comprising 54 lakh shares valued at Rs.92.88 crore. Retail investors can bid for a minimum of 87 shares and in multiples thereafter. The IPO will remain open for subscription until September 18, while anchor investors can start bidding on September 12.

Allocation-wise, 50% of the shares (worth Rs.246 crore) have been reserved for Qualified Institutional Buyers (QIBs), 15% (Rs.80 crore) for Non-Institutional Investors, and 35% (Rs.172 crore) for retail investors.

Use of Proceeds

The funds raised from the fresh issue will be used strategically—Rs.163.5 crore will go toward repaying or prepaying existing borrowings, while Rs.151.7 crore will be invested in capital expenditure for buying commercial vehicles, containers, and reach stackers. The remaining amount will be set aside for general corporate purposes in the company’s best interest.

Company Overview

Established in 2011, Western Carriers is a major player in the logistics sector, focusing on multi-modal, rail-based solutions. They offer customized logistics services through road, rail, water, and air transport. The company follows an asset-light model, which helps them stay scalable and flexible as they serve a wide range of clients, including big names like Tata Steel, Hindalco, Vedanta, Coca-Cola India, and DHL.

For FY24, Western Carriers reported a revenue increase to Rs.1,685 crore, up from Rs.1,633 crore in the previous year, and a 12% growth in profit after tax (PAT) to Rs.80 crore.

Conclusion: In conclusion, Western Carriers’ IPO is one to watch for investors seeking a slice of India’s booming logistics sector. With plans to cut debt and ramp up expansion, the company’s client base and steady growth make it an appealing bet for those eyeing future returns in this market.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.