The initial public offering (IPO) of Western Carriers India witnessed robust investor interest, with the issue being oversubscribed 9.43 times by the end of the second day on September 17, 2024. The Kolkata-based logistics company aims to raise ₹493 crore through the offering, comprising a fresh issue of equity shares worth ₹400 crore and an offer-for-sale (OFS) by promoters totaling ₹93 crore.
According to data from the NSE, the IPO received bids for 19.67 crore shares against the 2.08 crore shares on offer. The breakdown of subscriptions showed:
- Retail Individual Investors (RIIs) bid 13.26 times their allocated portion.
- The Non-Institutional Investors (NIIs) segment was subscribed 12.74 times.
- The Qualified Institutional Buyers (QIBs) category saw relatively lower demand, receiving 9% subscription.
In an anchor round held earlier, Western Carriers secured ₹148 crore from leading institutional investors, indicating strong pre-listing interest.
Utilization of IPO Proceeds
The company plans to use the funds raised from the fresh issue for strategic purposes, including:
- ₹163.5 crore towards debt repayment.
- ₹152 crore to finance capital expenditure for acquiring commercial vehicles, shipping containers, and reach stackers.
- The remaining will go towards general corporate purposes.
Company Overview
Western Carriers India is a leading multi-modal logistics player, known for its asset-light business model focused on rail transportation. It serves 1,647 customers across sectors like metals, FMCG, pharmaceuticals, chemicals, and oil and gas. Major clients include Tata Steel, Hindalco, Vedanta, Coca-Cola India, and Cipla.
With the price band set at ₹163-172 per share, the IPO will close on September 19, with shares expected to list on the BSE and NSE shortly after.
Book-Running Lead Managers
The IPO is being managed by JM Financial and Kotak Mahindra Capital, key players in handling high-profile public offerings.
Western Carriers' promising financials, solid client base, and strategic expansion plans make it a notable player in India's booming logistics sector, contributing to the high investor interest.
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