Western Carriers (India) is a leading private, multi-modal, rail-focused logistics company in India, recognized for handling the largest container volumes among private players in Fiscal 2023. Established in 1972, the company has extensive experience in road, rail, and sea/river multi-modal movement for domestic and EXIM cargo.

The company's Initial Public Offering (IPO) is a Book Built Issue, amounting to ₹492.88 Crores. This includes a Fresh Issue of 232.55 lakh shares worth ₹400.00 Crores and an Offer for Sale of 54 lakh shares totaling ₹92.88 Crores. The subscription period for the IPO opens on September 13, 2024, and closes on September 18, 2024. Allotment is expected to be finalized on September 19, 2024, with shares listed on BSE and NSE on September 23, 2024.

The share price is set between ₹163 to ₹172 per share, with a minimum lot size of 87 shares. Retail investors must invest a minimum of ₹14,964, while High-Net-Worth Individuals (HNIs) need to invest in a minimum of 14 lots or 1,218 shares, totaling ₹209,496.

IPO Management

The Book-Running Lead Managers for the IPO are Kotak Mahindra Capital Company Limited and JM Financial Limited. Link Intime India Private Limited is the registrar for the issue.

Grey Market Premium

The Grey Market Premium (GMP) for the Western Carriers (India) IPO is expected to range between ₹95 to ₹105. GMP is speculative and does not guarantee actual listing gains. It reflects market demand and supply in an unorganized manner and is provided for informational purposes only.

Subscription Status

As of 06:05 PM on September 13, 2024, the IPO has been subscribed 0.79 times on its first day. For real-time updates on the Western Carriers (India) IPO subscription status, investors can check the BSE website.

Anchor Investors

Western Carriers (India) has raised ₹147.86 Crores from Anchor Investors at a price of ₹172 per share. 85,96,743 equity shares were allocated to these investors. The lock-in period for 50% of the shares allotted to Anchor Investors ends on October 19, 2024 (30 Days), and for the remaining 50%, it ends on December 18, 2024 (90 Days).

Allotment Details

The allotment date for the IPO is September 19, 2024. To check the allotment status online, follow these steps:

Visit the IPO allotment status page.

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

Enter your application number, PAN, or DP Client ID.

Submit the details to view your allotment status.

Objectives of the IPO

The proceeds from the Fresh Issue will be utilized for:

₹1,635.00 Crores for the prepayment or repayment of outstanding borrowings.

₹1,517.10 Crores for capital expenditure, including:

Purchase of commercial vehicles.

40 feet specialized containers and 20 feet normal shipping containers.

Reach stackers.

General corporate purposes.

Financial Performance and Valuation

Western Carriers (India) has shown steady financial performance:

Revenue increased from ₹14,757.89 Crores in FY22 to ₹16,914.10 Crores in FY24.

EBITDA rose from ₹1,088.87 Crores in FY22 to ₹1,518.24 Crores in FY24.

PAT grew from ₹611.29 Crores in FY22 to ₹803.47 Crores in FY24.

For the IPO, the company is offering shares at a pre-issue EPS of ₹10.21 and a post-issue EPS of ₹7.88. The pre-issue P/E ratio is 16.84x, and the post-issue P/E ratio is 21.82x, compared to the industry P/E ratio of 32.51x. The company's ROCE for FY24 is 29.23%, and ROE is 22.41%. These metrics suggest that the IPO is reasonably priced.

IPO Review

Given Western Carriers (India)’s robust financial performance and the valuation metrics, the IPO shows potential listing gains of 55% - 60%. The company’s track record in the logistics sector makes it a viable option for investors, though it is recommended primarily for those with a higher risk tolerance.

Disclaimer: The information provided is for educational purposes only and should not be considered financial advice. Investors are advised to seek professional advice tailored to their individual circumstances before making any investment decisions.

About the Author

CA Abhay Kumar, also known as CA Abhay Varn, is a Chartered Accountant and SEBI Registered Research Analyst with over 8 years of experience in the stock market. He specializes in both technical and fundamental analysis to guide investment decisions.

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