Western Carriers India Launches IPO to Raise ₹492.88 Crore

Western Carriers India, a logistics company, has launched its Initial Public Offering (IPO) today, September 13, 2024. The IPO is set to conclude on September 18, 2024. With a target to raise ₹492.88 crore, the company had previously garnered ₹148 crore from anchor investors by issuing 85,96,743 shares at the higher price band of ₹172 per share.

Prominent participants in the anchor round included firms such as Kotak Mahindra, Motilal Oswal, and Aditya Birla Sun. As of 10:15 am on the first day, the overall subscription rate of the IPO stood at 0.06 times, with a 0.11 subscription rate for retail investors and a 0.01 subscription rate for non-institutional investors. The Qualified Institutional Buyers (QIB) segment has not seen any subscriptions thus far.

The IPO, characterized as a book-built issue, is comprised of a fresh issue of 2.33 crore shares and an offer for sale of 54 lakh shares. Investors are invited to invest with a minimum lot size of 87 shares, equating to a minimum investment of ₹14,964 at the upper price band of ₹172 per share. The shares are proposed to be listed on the BSE and NSE by September 23, 2024.

According to the Red Herring Prospectus (RHP), Western Carriers India operates as a multimodal, rail-focused, 4PL asset-light logistics company, serving 1,647 customers as of March 31, 2024. The company aims to utilize the IPO proceeds to repay its borrowings and fund capital expenditure for purchasing commercial vehicles and other essential equipment.

Research analyst Akriti Mehrotra of StoxBox recommends subscribing to the IPO, citing its lower valuation compared to its peers and strategic initiatives aimed at enhancing operational margins through value-added services. Additionally, Swastika Investmart suggests a ‘may apply’ recommendation for long-term investors with a high-risk appetite, considering the IPO’s valuation and existing financial challenges.