Upcoming IPO: Western Carriers (India) IPO to open for subscription on Sept 13; price band set at ₹163-172 apiece

Western Carriers (India) IPO price band: The Western Carriers (India) Limited IPO price band has been fixed in the range of ₹163 to ₹172 per equity share of the face value of ₹5. The Western Carriers (India) IPO date of subscription is scheduled for Friday, September 13, and will close on Wednesday, September 18. The allocation to anchor investors for the Western Carriers (India) IPO is scheduled to take place on Thursday, September 12.

The floor price and the cap price are 32.60 times and 34.40 times the face value of the equity shares, respectively. The price to earnings ratio based on diluted EPS for financial year 2024 for the company at the higher end of the price band is as high as 16.85 times and at the lower end of the price band is 15.96 times, according to company's advertisement on the Financial Express. The Western Carriers (India) IPO lot size is 87 equity shares and in multiples of 87 equity shares thereafter.

Western Carriers (India) IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors.

Tentatively, Western Carriers (India) IPO basis of allotment of shares will be finalised on Thursday, September 19, and the company will initiate refunds on Friday, September 20, while the shares will be credited to the demat account of allottees on the same day following refund. Western Carriers (India) share price is likely to be listed on BSE and NSE on Monday, September 23.

The largest private, multi-modal, rail focused, 4PL asset-light logistics company in India based on container volumes handled/operated by private players in fiscal 2023 is the company. According to the ILattice Report, the company's market share in the domestic and EXIM markets, based on container volumes handled, was 6% and 2%, respectively, in fiscal 2023.

The company's promoters are Rajendra and Kanishka Sethia.

The business provides services in the following industries: engineering, chemicals, fast-moving consumer goods (FMCG), metals, oil & gas, and retail. Tata Steel, Hindalco Industries, Jindal Stainless, JSW Steel Coated Products, Bharat Aluminium Company Ltd., Vedanta, Hindustan Unilever Ltd. ("HUL"), and several more companies are among its clients.

As per the red herring prospectus (RHP), the company's peers are Container Corporation of India Ltd (with a P/E of 47.73), Mahindra Logistics Ltd (with a P/E of (62.93)), and TCI Express Ltd (with a P/E of 32.48).

In the financial year ending on March 31, 2024, Western Carriers (India) Limited saw a 3% increase in revenue and a 12% rise in profit after tax (PAT) compared to the previous year ending on March 31, 2023.

Western Carriers (India) IPO details

The firm based in Kolkata is planning to issue a total of ₹492.88 crore worth of shares, including a fresh issue of ₹400 crore and offer for sale of up to 5.4 million shares by the promoter Rajendra Sethia. At the upper price band, the offer for sale will amount to ₹92.88 crore. The funds raised from the issue, amounting to ₹163.50 crore, will go towards repaying debt, while ₹151.71 crore will be allocated for capital expenditure.

The Western Carriers (India) IPO has Jm Financial Limited and Kotak Mahindra Capital Company Limited as its book running lead managers, with Link Intime India Private Ltd serving as the registrar for the issue.

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