Western Carriers Makes NSE Debut at Rs 171, Slightly Below Issue Price

Team Finance Saathi

    24/Sep/2024

Major Takeaways:

IPO Debut: Western Carriers (India) listed at Rs 171 on NSE, a 0.58% drop from its issue price of Rs 172.

IPO Subscription: The IPO was oversubscribed by 31.69 times, receiving 63.57 crore bids for 2 crore shares.

IPO Details: The IPO, valued at Rs 492.88 crore, had a price band of Rs 163-172 per share, with a minimum investment of Rs 14,964 for retail investors.

Business Overview: Western Carriers is India's largest private, multi-modal, rail-focused, 4PL logistics company, with expertise in EXIM cargo movement.

Financial Performance: In FY24, the company reported revenue of ₹16,914.10 million and a PAT of ₹803.47 million.

GMP: The Grey Market Premium (GMP) suggested potential listing gains of 32%-35%, though the stock opened slightly below the issue price.

Western Carriers (India) has made a noteworthy entrance into the stock market, debuting at ₹171 on the NSE, reflecting a minor decrease of 0.58% from its IPO issue price of ₹172. The company’s initial public offering (IPO) was open for subscription from September 13 to September 19, 2024, and it attracted significant investor interest, achieving an overall subscription rate of 31.69 times with bids for 63.57 crore shares, far exceeding the 2 crore shares on offer.

As the largest private, multi-modal, rail-focused, asset-light logistics company in India by container volumes, Western Carriers (India) operates across various sectors. Their expertise in road, rail, and sea/river multi-modal movement for both domestic and EXIM cargo positions them as a key player in the logistics sector.

IPO Structure

The IPO comprised a fresh issue of 232.55 lakh shares, raising ₹400 crores, and an offer for sale of 54 lakh shares, totaling ₹92.88 crores. Investors had to place bids within a price band of ₹163 to ₹172 per share, with a minimum lot size of 87 shares, making the minimum investment for retail investors around ₹14,964.

Kotak Mahindra Capital Company Limited and JM Financial Limited acted as the book-running lead managers, while Link Intime India Private Limited served as the registrar for the issue.

Financial Performance

Western Carriers has shown steady growth in its financial metrics:

Revenue: Increased from ₹14,757.89 million in FY22 to ₹16,914.10 million in FY24.

EBITDA: Grew from ₹1,088.87 million in FY22 to ₹1,518.24 million in FY24.

PAT: Rose from ₹611.29 million in FY22 to ₹803.47 million in FY24.

The pre-issue EPS stands at ₹10.21, with a post-issue EPS of ₹7.88. The pre-issue P/E ratio is 16.84x, while the post-issue P/E is 21.82x, compared to an industry average of 32.51x. These figures suggest that the IPO is reasonably priced.

Grey Market Premium (GMP) and Future Outlook

The Grey Market Premium for Western Carriers is projected to be between ₹55 to ₹60, indicating potential listing gains of 32% to 35%. Given the company's robust financial performance, investors are recommended to apply for the IPO, particularly those with a higher risk appetite, for potential listing gains or long-term investment.

How to Check IPO Allotment Status

The allotment date for the Western Carriers IPO is set for September 19, 2024. Investors can check their allotment status by:

Navigating to the IPO allotment status page.

Selecting Western Carriers (India) Limited IPO from the dropdown.

Entering the application number, PAN, or DP Client ID.

Submitting the details to view the allotment status.

Disclaimer

The information provided in this IPO review is for educational and informational purposes only and should not be construed as financial advice or an offer to buy or sell securities. It is essential for investors to seek professional advice before making any investment decisions.

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