Western Carriers India IPO Opens: Key Details, GMP, Subscription Status & Should You Apply?

Western Carriers India, a logistics company, has launched its initial public offering (IPO) for subscription today, Friday, 13th September. The IPO aims to raise ₹492.88 crore and will close on Wednesday, 18th September. Ahead of the IPO, the company raised ₹148 crore from anchor investors, offering 85,96,743 shares at the upper price of ₹172 per share. Some of the anchor investors include Kotak Mahindra, Motilal Oswal, and Aditya Birla Sun.

Here are the 10 key details about the Western Carriers India IPO:

1. GMP (Grey Market Premium): The current GMP for the Western Carriers IPO is zero, meaning there is no premium trading in the grey market. Based on this, the shares are expected to list at ₹172.
2. Price Band: The price range for the shares is set between ₹163 and ₹172 per share.
3. Subscription Dates: The IPO opens for subscription on Friday, 13th September, and closes on Wednesday, 18th September.
4. Size of the Issue: The IPO includes a fresh issue of 2.33 crore shares and an offer for sale (OFS) of 54 lakh shares, with a total value of ₹492.88 crore. From the fresh issue alone, the company aims to raise ₹400 crore.
5. Lot Size: Investors must apply for a minimum of 87 shares. With the upper price band of ₹172, retail investors will need to invest at least ₹14,964.
6. Allotment Date: The allotment of shares is expected to be finalised on Thursday, 19th September, with shares credited to demat accounts on Friday, 20th September. Refunds for those who don’t receive an allotment will also be processed on the same day.
7. Registrar: Link Intime India Private Ltd is managing the IPO.
8. Listing Date: The shares are expected to be listed on both the BSE and NSE on Monday, 23rd September.
9. Purpose of the Issue: The funds raised will be used to pay off borrowings and for capital expenditure, including buying commercial vehicles, shipping containers, and other equipment.
10. Company Overview: Western Carriers India is a multimodal logistics company with a focus on rail-based services. It provides tailored end-to-end logistics services across various industries. The company has a diverse customer base and had strong revenues from its top clients in recent years.

Should You Apply?

Akriti Mehrotra, a research analyst at StoxBox, recommends subscribing to the IPO, highlighting its lower valuation and potential for growth in the multi-modal logistics sector. The issue is priced at a PE ratio of 16.8 based on FY24 earnings, making it relatively cheaper compared to its competitors. The company is well-positioned for growth, thanks to its strategic initiatives and focus on technology.

Swastika Investmart also gives a ‘subscribe’ rating but mentions some concerns, including the company’s slow growth and financial challenges. They suggest that long-term investors with a higher risk tolerance may consider applying.