Western Carriers (India) Limited IPO
Western Carriers (India) Limited is launching its initial public offering (IPO) from September 13-18, 2024. The company is a multi-modal, rail-focused, 4PL asset-light logistics provider offering customized solutions across road, rail, water and air transportation. The IPO aims to raise Rs 492.88 crores through a fresh issue and offer for sale at a price band of Rs 163-172 per share.
RI
by RA ALOK DAIYA SEBI Reg. INH000011468
IPO Overview and Timeline
1
IPO Issue Size
The Western Carriers (India) IPO is a book built issue of Rs 492.88 crores. The issue is a combination of fresh issue of 2.33 crore shares aggregating to Rs 400.00 crores and offer for sale of 0.54 crore shares aggregating to Rs 92.88 crores.
2
IPO Opening Date
September 13, 2024
3
IPO Closing Date
September 18, 2024
4
Allotment Date
September 19, 2024
5
Listing Date
September 23, 2024
6
Price Band
The IPO price band is set at ₹163 to ₹172 per share.
7
Minimum Lot Size
The minimum lot size for an application is 87 Shares. The minimum amount of investment required by retail investors is ₹14,964. The minimum lot size investment for sNII is 14 lots (1,218 shares), amounting to ₹209,496, and for bNII, it is 67 lots (5,829 shares), amounting to ₹1,002,588.
About Western Carriers (India) Limited
Rail Focused Logistics
Western Carriers (India) Limited specializes in rail transportation, offering efficient and cost-effective solutions for moving goods across the country.
Multi-modal Logistics Solutions
The company provides customized solutions for road, rail, water, and air transportation, ensuring seamless movement of goods.
Nationwide Reach
Western Carriers serves a diverse clientele across various sectors, including metals, FMCG, pharmaceuticals, chemicals, engineering, oil and gas, retail, and more.
Founded in 2011, Western Carriers (India) Limited is a leading multi-modal logistics provider with a focus on rail transportation.
The company offers customized solutions for road, rail, water, and air transportation, along with value-added services. Western Carriers serves a diverse clientele in various sectors, including metals, FMCG, pharmaceuticals, chemicals, engineering, oil and gas, retail, and more.
Notable clients include Tata Steel, Hindalco Industries, Jindal Stainless, JSW Steel, BALCO, Vedanta, Hindustan Unilever, Coca Cola India, Tata Consumer Products, Wagh Bakri, CG Foods, Cipla, MCPI, Haldia Petrochemicals, GHCL, BCPL, Sleepwell, and DHL Logistics.
Western Carriers' expertise extends beyond traditional logistics. They offer chartering services to international destinations, stevedoring services at Indian ports, and coastal cargo movement within India. The company specializes in combining rail with road movements through an asset-light business model, optimizing efficiency and cost-effectiveness.
Western Carriers plays a vital role in managing and handling supply chains for a leading metals and resource group company, ensuring seamless operations for increased imports, exports, and production levels.
As of December 31, 2022, Western Carriers had served over 1,100 customers and employed 1,350 individuals across various departments.
Company Financials
Western Carriers (India) Limited's revenue increased by 3% and profit after tax (PAT) rose by 12% between the financial year ending with March 31, 2024 and March 31, 2023.
Amount in ₹ Crore
Key Performance Indicators
The market capitalization of Western Carriers (India) IPO is Rs 1753.63 Cr.
KPI as of March 31, 2024.
ROE
22.41%
ROCE
29.23%
Debt/Equity
0.67
RoNW
20.17%
Pre IPO EPS (Rs): 10.21
Post IPO EPS (Rs): 7.88
Pre IPO P/E (x): 16.85
Post IPO P/E (x): 21.83
Objectives of the Issue
Debt Repayment
Prepayment or scheduled re-payment of a portion of certain outstanding borrowings availed by the Company.
Capital Expenditure
Funding of capital expenditure requirements of our Company towards purchase of:
- commercial vehicles
- 40 feet specialised containers and 20 feet normal shipping containers
- reach stackers
General Corporate Purposes
General corporate purposes.
IPO Review
The company is the largest private, multi-modal, rail focused, 4PL asset-light logistics company in India. It marked steady growth in its top and bottom lines for the reported periods. Based on FY24 earnings, the issue appears reasonably priced.
Considering the rising demands for logistics due to ongoing expansions/infra developments/ rising business opportunities, the company is poised for bright prospects. Investors may park funds for medium to long term.