Western Carriers India IPO day 1: GMP, review, subscription status, other details. Apply or not?

Western Carriers India IPO: Logistics company Western Carriers (India) 's initial public offering (IPO) is opening for subscription today (Friday, September 13). The book-built issue, which aims to raise ₹492.88 crore, will conclude on Wednesday, September 18. The company said it had raised ₹148 crore from anchor investors ahead of the Western Carriers India IPO, by allocating 85,96,743 shares at the upper price band of ₹172 to 15 anchor investors. Kotak Mahindra, Motilal Oswal, Aditya Birla Sun were among the participants in the anchor book round.

Western Carriers India IPO subscription status

According to BSE data, by 10:15 am on Friday, the first day of subscription, the Western Carriers India IPO had seen an overall subscription of 0.06 times.

The portion reserved for retail investors was subscribed 0.11 times, while the non-institutional investors' category had seen a subscription of 0.01 times. The QIB segment of the issue had not seen any subscriptions by that time.

Western Carriers India IPO key details

Let's take a look at the 10 key details of the Western Carriers India IPO:

1. Western Carriers India IPO GMP: Market sources pointed out that the current grey market premium (GMP) of the Western Carriers India IPO is zero. In other words, the IPO is not trading at any premium in the grey market, and based on the current GMP trend, the company's shares are expected to be listed flat at ₹172 on the Indian bourses.

2. Western Carriers India IPO price band: The issue's price band has been set at ₹163 to ₹172 per share.

3. Western Carriers India IPO date: The book build issue is opening for subscription today (Friday) and will conclude on Wednesday, September 18.

4. Western Carriers India IPO size: The issue is a combination of a fresh issue of 2.33 crore shares and an offer for sale (OFS) of 54 lakh shares. The company intends to raise ₹492.88 crore from the IPO. It will raise ₹400 crore from the fresh issue of shares.

5. Western Carriers India IPO lot size: The minimum lot size for an application is 87 Shares. With the upper price band of the issue at ₹172, the minimum amount of investment required by retail investors is ₹14,964.

6. Western Carriers India IPO allotment date: After the completion of the IPO subscription process, the company is expected to finalise the share allotment on Thursday, September 19. Applicants who get the shares will likely see them credited to their demat accounts by Friday, September 20, while those who do not receive an allotment may expect refunds to be processed on the same day.

7. Western Carriers India IPO registrar: Link Intime India Private Ltd is the official registrar of the issue.

8. Western Carriers India IPO listing: The company's shares are proposed to be listed on the BSE and the NSE tentatively on Monday, September 23.

9. Object of the issue: The company intends to use the net proceeds from the issue to pay its borrowings and to fund the company's capital expenditure requirements, including the purchase of commercial vehicles, specialised and normal shipping containers and reach stackers.

10. Company overview: According to the RHP, the company is a multimodal, rail-focused, 4PL asset-light logistics company. It provides integrated, customised, end-to-end services across the logistics value chain to its customers.

"As of March 31, 2024, we served a diverse base of 1,647 customers. Our revenue from operations from our top 10 customers in FY24, FY23 and FY22 was ₹12,131.71 million, ₹10,966.25 million and ₹10,560.68 million, respectively, which represented 71.97 per cent, 67.15 per cent and 71.80 per cent, respectively, of our total revenue from operations in those periods," said the company's RHP.

Western Carriers India IPO: Apply or not?

Akriti Mehrotra, a research analyst at StoxBox, has a 'subscribe' recommendation on the issue as he highlights the issue's lower valuation and the company's growth prospects.

"The current issue is priced at a PE of 16.8 times on the upper band based on FY24 earnings and is relatively lower than its peers. Given its strong financials, strategic initiatives, and positioning to capitalize on the expanding rail-road multi-modal sector, we recommend a 'subscribe' rating for the issue with a medium to long-term investment perspective," said Mehrotra.

"The company plans to improve operational margins through value-added services and technology, underscoring its potential for sustained growth. Its commitment to leveraging technological advancements and expanding project logistics capabilities position it well to capitalize on the projected growth in the rail-road multi-modal sector, forecast to reach ₹4,667 billion by FY29," said Mehrotra.

Giving a 'subscribe' tag to the book build issue, Swastika Investmart says, “Western Carriers (India) has exhibited slow but consistent financial growth with a positive trajectory. The IPO's valuation is considered reasonable. The company faces a long payment cycle and is exposed to several operational risks. Given the company's financial challenges and limited market interest, a 'may apply' rating is recommended for long-term investors with a high-risk tolerance.”

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Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.

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