Western Carriers (India), the largest private multi-modal rail-focused logistics company in India, launched its Initial Public Offering (IPO) on September 13, 2024, at a price range of ₹163 to ₹172 per equity share. This much-anticipated IPO is expected to raise ₹492.88 crore, comprising a fresh issue of 232.55 lakh shares worth ₹400 crore and an offer for sale of 54 lakh shares totaling ₹92.88 crore. The IPO is seen as an exciting opportunity for investors, given the company's reputation and strong financial performance in recent years.

The IPO subscription period is set to close on September 18, 2024, with the allotment date scheduled for September 19, 2024. Investors can expect the shares to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on or about September 23, 2024. The minimum lot size for retail investors is 87 shares, requiring an investment of ₹14,964, while High-Net-Worth Individuals (HNIs) must invest a minimum of 14 lots (1,218 shares), amounting to ₹209,496.

The company, with Kotak Mahindra Capital Company Limited and JM Financial Limited as the book-running lead managers, has garnered considerable attention from investors, particularly after raising ₹147.86 crore from anchor investors at a price of ₹172 per share. The allocated 85,96,743 equity shares come with a lock-in period of 30 days for 50% of shares, while the remaining 50% is locked in for 90 days.

Western Carriers' Grey Market Premium (GMP) has been quoted between ₹95 to ₹105, reflecting positive sentiment among traders and a potential listing gain of 55% - 60%. However, it’s important to note that GMP is driven by market demand and supply dynamics and is not an official indicator of future listing prices. No actual trading occurs based on GMP; hence, it's crucial for investors to view it with caution.

Subscription Status Update
On the first day of the subscription period, Western Carriers (India) Limited IPO was subscribed 0.79 times as of 6:05 PM on September 13, 2024. This strong initial interest hints at the company's potential to attract more investors in the days leading up to the IPO closing. Investors can check the live subscription status on BSE for real-time updates.

Financial Performance and Business Overview
Western Carriers (India) is renowned for its extensive experience in road, rail, sea, and river multi-modal logistics solutions. The company, which handles both domestic and EXIM cargo, has seen steady growth in recent years. Its revenue grew from ₹14,757.89 million in FY22 to ₹16,914.10 million in FY24, showcasing a solid financial trajectory. Similarly, the company's EBITDA increased from ₹1,088.87 million in FY22 to ₹1,518.24 million in FY24, with PAT rising from ₹611.29 million to ₹803.47 million during the same period.

The company's pre-issue Earnings Per Share (EPS) is ₹10.21, and its post-issue EPS is ₹7.88. The pre-issue Price to Earnings (P/E) ratio stands at 16.84x, while the post-issue P/E ratio is 21.82x, compared to the industry P/E ratio of 32.51x. Western Carriers' Return on Capital Employed (ROCE) for FY24 is 29.23%, and its Return on Equity (ROE) stands at 22.41%, indicating solid profitability.

Given the company’s strong fundamentals and the relatively fair pricing of the IPO, it is considered an attractive option for long-term investors. The growing demand for multi-modal logistics services in India, especially with the government's focus on improving infrastructure and connectivity, makes Western Carriers well-positioned for future growth.

Objectives of the IPO
The funds raised through this IPO will be used for the following objectives:

₹1,635 million will be allocated for prepayment or scheduled repayment of certain outstanding borrowings.

₹1,517.10 million will be directed towards capital expenditure for the purchase of commercial vehicles, 40-foot specialized containers, 20-foot normal shipping containers, and reach stackers.

The remainder will be used for general corporate purposes.

For investors interested in checking the allotment status, the process is simple:

Navigate to the IPO allotment status page on the registrar's website.

Select Western Carriers (India) Limited IPO from the dropdown list.

Enter your application number, PAN, or DP Client ID to check the status.

Investment Insights and Review
Western Carriers (India) has carved a niche as the largest private multi-modal rail-focused logistics company in India, and this IPO represents a significant milestone in its growth journey. The company's consistent financial performance and established infrastructure make it a robust investment opportunity, particularly for investors with a high-risk appetite seeking both listing gains and long-term returns.

Given the strong Grey Market Premium and positive investor sentiment, risk-tolerant investors may find value in subscribing to the Western Carriers IPO. However, investors are advised to evaluate their individual risk appetite and investment strategy before making a decision.

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