The initial public offering (IPO) of Western Carriers (India) Ltd., a leading logistics company, was subscribed 0.79 times on the first day of subscription, Friday, 13 September 2024. According to data from the stock exchange, the IPO received bids for 1,64,59,269 shares compared to 2,08,68,467 shares on offer.
IPO Details and Subscription Status
The IPO, which opened for bidding on 13 September 2024, will remain open until Wednesday, 18 September 2024. The price range for the IPO is set between Rs 163 to Rs 172 per share. Investors can place bids for a minimum of 87 equity shares and in multiples thereof.
The IPO includes a fresh issue of equity shares aggregating up to Rs 400 crore and an offer for sale (OFS) of up to 54 lakh equity shares, with a face value of Rs 5 each. The offer for sale is by Rajendra Sethia, the promoter of Western Carriers (India), who is divesting his entire stake in the company.
Out of the total shares on offer, the portion reserved for Retail Individual Investors (RIIs) was subscribed 1.41 times, while the non-institutional investors’ category saw a subscription of 38 percent.
Fund Utilization Plan
The net proceeds from the fresh issue will be allocated as follows:
- Rs 163.5 crore will be utilized for the prepayment or scheduled repayment of certain outstanding borrowings.
- Rs 151.71 crore is earmarked for funding capital expenditure requirements, including the purchase of commercial vehicles, specialized containers (40-feet), normal shipping containers (20-feet), and reach stackers.
- The remaining funds will be directed toward general corporate purposes.
As of 31 July 2024, Western Carriers (India) had outstanding consolidated borrowings amounting to Rs 352.731 crore.
Pre-IPO Anchor Investments
Ahead of the public offering, Western Carriers (India) raised Rs 148 crore from anchor investors on 12 September 2024. A total of 85.96 lakh shares were allotted to 15 anchor investors at a price of Rs 172 per share.
Company Profile and Key Customers
Western Carriers (India) Ltd. is one of India’s leading private multi-modal, rail-focused, asset-light logistics companies. With a diverse customer base spanning 1,647 clients across various sectors, including metals and mining, FMCG, pharmaceuticals, building materials, chemicals, oil and gas, and utilities, the company has established a significant presence in the industry. Some of its prominent clients include Tata Steel, Hindalco Industries, Vedanta, BALCO, HUL, Coca-Cola India, Tata Consumer Products, Wagh Bakri, Cipla, Haldia Petrochemicals, and Gujarat Heavy Chemicals.
IPO Management and Listing
The book-running lead managers for the IPO are JM Financial and Kotak Mahindra Capital Company. Upon successful completion, the equity shares of Western Carriers (India) Ltd. will be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).