The non-institutional investors (NII) portion was subscribed 3.18 times, while the quota reserved for qualified institutional buyers (QIBs) was subscribed by only 1%. Till then, 37,497 bids for shares were received from QIBs, as against 58,98,528 shares available for reservation.
The IPO comprises a fresh share sale of Rs 400 crore and an offer for sale (OFS) of up to 54 lakh shares by promoter selling shareholder Rajendra Sethia.
Western Carriers IPO Price Band
The company has fixed a price band of Rs 163-172 per share, where investors can bid for 87 shares in one lot.
Western Carriers GMP IPO
In the unlisted market, the company’s shares were trading at a grey market premium of Rs 55 per share, which is a 32 per cent premium over the upper band of the issue price.
Western Carriers IPO review
Analysts advised only high-risk investors to subscribe to the issue as the company faces a long repayment 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,” Swastika Investmart said.
Other details
Proceeds from the new issue will be used to repay borrowings and fund capital expenditures for the purchase of commercial vehicles, containers and reach stackers, with the remaining funds allocated for general corporate purposes.
Western Carriers has a pan-India presence with over 50 branches and four zonal offices across 23 states. The company operates 16 warehouses in 12 states and manages over 55 major public delivery points across India. This extensive network enables it to offer both first 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 a variety of industries including metals, FMCG, pharmaceuticals, chemicals, and oil & gas. Key customers include: Tata Steel, Hindalco Industries, THEMand DHL.
For FY24, the company reported a 4% rise in consolidated revenue from operations to Rs 1,686 crore, while profit after tax (PAT) rose 12% to Rs 80.3 crore.
For the fiscal year 2024, the company reported revenue of Rs 1,685 crore and PAT of Rs 80 crore. JM Financial and Kotak Mahindra Capital Company are the lead managers for the IPO. The equity shares will be listed on the Boston Stock Exchange and the New York Stock Exchange.
(Disclaimer: The recommendations, suggestions, views and opinions of the experts are their own and do not represent the views of The Economic Times)
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