Western Carriers (India) Limited is recognized as the largest private, multi-modal, rail-focused logistics company in India based on container volumes handled by private players in Fiscal 2023. With extensive experience in road, rail, and sea/river multi-modal movement, Western Carriers efficiently manages both domestic and EXIM cargo in and out of India. Their expertise extends across a diverse range of logistics solutions, integrating various modes of transport to deliver comprehensive services.

IPO Overview

The Western Carriers (India) IPO is a Book Built Issue amounting to ₹492.88 Crores. It includes a Fresh Issue of 232.55 lakh shares valued at ₹400.00 Crores and an Offer for Sale (OFS) of 54 lakh shares worth ₹92.88 Crores. The subscription period is from September 13, 2024, to September 18, 2024, with the allotment expected on September 19, 2024. The shares are scheduled to be listed on NSE and BSE on September 23, 2024.

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

Kotak Mahindra Capital Company Limited and JM Financial Limited are the book-running lead managers, and Link Intime India Private Limited is the registrar for the issue.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for Western Carriers (India) is estimated to be in the range of ₹95 to ₹105. GMP reflects the potential listing gains, but it is important to note that GMP is based on unregulated market activity and does not guarantee the actual listing price. It should be considered for informational purposes only.

Live Subscription Status

As of 03:51 PM on September 16, 2024, the Western Carriers IPO has been subscribed 4.19 times on its second day, indicating strong investor interest. For the most recent updates on the live subscription status, visit the BSE website.

Anchor Investors Report

Western Carriers (India) has secured ₹147.86 Crores from Anchor Investors at a price of ₹172 per share. The company allocated 85,96,743 equity shares to these investors. The lock-in period for 50% of the shares ends on October 19, 2024 (30 days), and for the remaining 50% ends on December 18, 2024 (90 days). The Anchor Investors List can be checked for more details.

Allotment Status

The IPO allotment is expected on September 19, 2024. To check the allotment status:

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

Proceeds from the Fresh Issue will be used for the following purposes:

₹1,635.00 Crores for the prepayment or scheduled re-payment of outstanding borrowings.

₹1,517.10 Crores for capital expenditure towards the purchase of:

Commercial vehicles

40 feet specialized containers and 20 feet normal shipping containers

Reach stackers

General corporate purposes

Company Overview and Financial Performance

Western Carriers (India) has established itself as a leading 4PL asset-light logistics company with significant experience in providing end-to-end, multi-modal logistics solutions. The company integrates road, rail, sea, and air logistics to offer customized services across the supply chain.

Financially, the company has shown a steady growth trajectory:

Revenue increased from ₹14,757.89 Crores in FY22 to ₹16,378.40 Crores in FY23, and is currently ₹16,914.10 Crores in FY24.

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

Profit After Tax (PAT) grew from ₹611.29 Crores in FY22 to ₹803.47 Crores in FY24.

For this IPO, shares are being issued with a pre-issue EPS of ₹10.21 and a post-issue EPS of ₹7.88. The pre-issue P/E ratio stands at 16.84x, and the post-issue P/E ratio at 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%, indicating a strong return on capital and equity.

Review and Recommendation

With a GMP indicating potential listing gains of 55-60% and substantial investor interest, the Western Carriers IPO offers a promising investment opportunity for risk-tolerant investors. The company's solid financial performance and fairly priced IPO suggest potential for both listing gains and long-term growth.

As always, potential investors should consider their risk tolerance and seek professional financial advice before making investment decisions. For additional insights, join the Trading with CA Abhay Telegram Channel and explore Finance Saathi for the latest updates. Open a Free Demat Account with Choice Broking FinX for seamless investment transactions.

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