Western Carriers’ IPO has been subscribed 3.47 times so far on the second day. Check GMP, other details

Western Carriers’ initial public offering (IPO) was oversubscribed 3.47 times through 2 days, receiving over 7.25 crore consolidated share bids till 2 pm on Monday against 2,08,68,467 shares available for subscription. The retail segment received a solid response with 5.55 times the subscription.

The non-institutional investors (NIIs) portion was subscribed 3.18 times, while the quota reserved for qualified institutional buyers (QIBs) was subscribed only 1%. As of this time, 37,497 share bids have been received from QIBs as against 58,98,528 shares available for booking.

In IPO Rs. 400 crore new equity sale and promoter selling includes an offer for sale (OFS) of up to 54 lakh shares by shareholder Rajendra Sethia.

Western Carriers IPO Price Band
The company paid Rs. 163-172 price band, where investors can bid for 87 shares in one lot.

Western Carriers IPO GMP

In the unlisted market, the company’s shares are trading at Rs. 55’s were commanding a gray market premium. This is a 32% premium over the upper band of the issue price.

Western Carriers IPO Review

Analysts have advised only high-risk investors to subscribe to the issue as the company faces a long repayment cycle and is saddled with several operational risks.

Swastik Investsmart said, “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.

Other details
The proceeds from the fresh issue will be used to repay debt and capital expenditure to purchase commercial vehicles, containers and access stackers, along with any remaining funds earmarked for general corporate purposes.

Western Carriers has pan India presence with over 50 branch offices in 23 states and four zonal offices. The company operates 16 warehouses in 12 states and operates 55 large public rack points across India. This extensive network allows it to offer both first-mile and last-mile connectivity to customers with operations across the country, including in remote areas.

As of March 31, 2024, the company served 1,647 customers across industries including metals, FMCG, pharmaceuticals, chemicals and oil and gas. Major customers include Tata Steel, Hindalco Industries, HUL and DHL.

For FY24, the company reported a 4% increase in consolidated income from operations to Rs. 1,686 crore, while profit after tax (PAT) rose 12% to Rs. 80.3 crores.

For FY 2024, the company plans to invest Rs. 1,685 crore in revenue and Rs. 80 crore PAT was registered. JM Financial and Kotak Mahindra Capital Company are the book-running lead managers for the IPO. The equity shares will be listed on BSE and NSE.

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