Western Carriers India IPO Receives Strong Investor Interest

The bidding for the initial public offering (IPO) of Western Carriers (India) Limited commenced on September 13, 2024, and will be open until September 19, 2024. The company has set a price range between ₹163 and ₹172 per equity share for this public issue. The IPO will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Western Carriers aims to raise ₹492.88 crore, comprising a combination of fresh shares and an Offer for Sale (OFS).

On the first day of bidding, the IPO received strong interest from investors. In the grey market, shares of Western Carriers are currently available at a premium of ₹58, nearly doubling from the ₹30 premium recorded at the start of the subscription period. This bullish sentiment reflects a positive outlook on Dalal Street and enthusiastic responses from primary market investors.

By the morning of day three, the IPO had been subscribed 6.23 times overall. The retail portion was oversubscribed 9.29 times, the Non-Institutional Investors (NII) segment 7.24 times, while the Qualified Institutional Buyers (QIB) portion received 0.03 times the bids. Analysts have given the IPO a ‘subscribe’ rating, indicating promising growth potential for investors.

Anshul Jain, Head of Research at Lakshimishree Investment and Securities Ltd, noted that Western Carriers benefits from solid financial performance and strategic positioning in the rapidly growing Indian logistics market. He emphasized the company’s ability to overcome industry challenges and leverage emerging opportunities to continue its growth trajectory. Jain suggests that the IPO’s current valuation offers an attractive entry point for investors.

Similarly, Akriti Mehrotra, Research Analyst at StoxBox, views the IPO as reasonably priced, with a Price-to-Earnings (P/E) ratio of 16.8x at the upper price band based on FY24 earnings, which is considered lower than its industry peers. Mehrotra recommends a “SUBSCRIBE” rating for medium to long-term investors due to the company’s strong financials and strategic initiatives in the logistics sector.

The Western Carriers IPO is set to conclude on September 19, 2024, and the allotment date is expected to be one day later, on September 20, 2024. According to the ‘T+3’ listing rule, the IPO is likely to be listed on September 24, 2024. Investors are advised to consult with certified financial experts before making investment decisions, considering the volatile nature of the market.