“Western Carriers India IPO Day 4: Strong Demand, Grey Market Premium, and Subscription Surge – Should You Apply?”

The IPO of Western Carriers India, a logistics company, is receiving good interest from both retail investors and non-institutional investors (NII). The ₹492.88 crore issue opened for subscription on Friday, September 13, and will close on Thursday, September 19. Share allotment is expected on Friday, September 20, with the stock possibly listing on the BSE and NSE on Tuesday, September 24.

Grey Market Premium (GMP) Today

Shares of Western Carriers India are trading at a premium in the grey market, suggesting positive sentiment around the IPO. According to market sources, the grey market premium (GMP) is ₹50 today, slightly lower than ₹58 the previous day. Despite the dip, the premium is higher than last Friday’s level of ₹30. Considering the current GMP and the issue’s price band of ₹172, shares of Western Carriers India may list at ₹222, representing a 29.07% premium.

Subscription Status

On the third day of bidding, the IPO was subscribed 9.87 times overall. The retail portion was subscribed 13.97 times, the NII portion 13.33 times, while the Qualified Institutional Buyers (QIB) segment was subscribed 0.10 times.

Western Carriers India IPO Review

Analysts and brokerage firms are optimistic about the IPO due to its reasonable valuation and good growth prospects.

Choice Equity Broking recommends subscribing to the issue. They stated, “At the higher price band, Western Carriers India is asking for an EV/sales multiple of 1 time, which is cheaper than the peer average of 2.4 times. The company is well-positioned to benefit from the growing rail logistics market, making the IPO attractively priced.”

Anand Rathi Share and Stock Brokers also recommend subscribing, citing the company’s long-term growth strategy and operational efficiency. They noted, “With a P/E ratio of 21.8 times and a market capitalization of ₹17,536 million post-issue, we find the IPO fairly priced. We recommend a ‘subscribe’ rating.”

Western Carriers India IPO Details

The IPO price band is set between ₹163 to ₹172 per share. The offering includes a fresh issue of 2.33 crore shares and an offer for sale (OFS) of 54 lakh shares. The company aims to raise ₹400 crore from the fresh issue. The funds will be used to pay off debt and support capital expenditure. Share allotment is expected on September 20, and listing is expected on September 24.