Logistics company Western Carriers to go public on September 13

Logistics firm Western Carriers (India) Ltd is looking to raise Rs 500 crore through its initial share sale, which will open for public subscription on September 13. The Kolkata-based company’s initial public offering (IPO) will close on September 18 and bidding for anchor investors will open for one day on September 12, according to the Red Herring Prospectus (RHP).

Now, the IPO includes a new issue of equity shares totalling up to Rs 400 crore and an offer for sale (OFS) of up to 54 lakh equity shares by promoter Rajendra Sethia, according to the RHP.

According to merchant banking sources, the company’s issue size has been fixed at Rs 500 crore.

In its draft filings in June, Western Carriers’ proposed IPO involves a fresh issue of equity shares worth Rs 500 crore and an OFS component of 93.29 lakh equity shares.

The proceeds from the new issue worth Rs 163.5 crore will be used for debt Payment, Rs 152 crore for financing capital spending requirements for the purchase of commercial vehicles, shipping containers and stackers, and the remaining funds for general corporate purposes.

Western Carriers is India’s leading privately owned, multi-modal, rail-centric, asset-light logistics company with a customer base of 1647 across diverse sectors such as Metals & Mining, FMCG, Pharmaceuticals, Construction Materials, Chemicals, Oil & Gas and Utilities as of March 2024. Some of its key customers are Tata Steel, Hindalco Industries, VedantaBALCO, THEMCoca-Cola India, Tata Consumer ProductsWagh Bakri, CiplaHaldia Petrochemicals, MCPI, Gujarat Heavy Chemicals, BCPL and DHL, among others. From fiscal year 2024, the company will revenue Operating income was Rs 1,685 crore, with profit after tax (PAT) at Rs 80 crore.

JM Financial and Kotak Mahindra Capital Company are the lead managers for the issue. The equity shares are proposed to be listed on the Boston Stock Exchange and the New York Stock Exchange.