Western Carriers India IPO: Bidding for the initial public offering (IPO) of Western Carriers (India) Limited opened on 13th September 2024, i.e. on Friday last week. The public issue will remain open until 19th September 2024, i.e. Thursday this week. The company has fixed the Western Carriers India IPO price band at ₹163 to ₹172 per equity share. The book build issue is proposed for listing on the BSE and the NSE. The company aims to raise ₹492.88 crore, a mix of fresh shares and an Offer for Sale (OFS). After day one of bidding, the Western Carriers India IPO subscription status suggests that investors have responded strongly to the mainboard IPO.
Meanwhile, after two days of bidding, the grey market has gone highly bullish on Western Carriers India IPO. According to stock market observers, shares of the company are available at a premium of ₹58 in the grey market today. This means Western Carriers India IPO GMP (Grey Market Premium) today is ₹58, which was ₹30 on Friday last week. So, Western Carriers India's IPO GMP has almost doubled since the subscription opening date. Market observers said that positive bias on Dalal Street and decisive response by primary market investors could be the reasons for rising bias in favour of the Western Carriers India IPO.
By 3:15 PM on day 3 of bidding, the book build issue had been subscribed 8.37 times, the retail portion of the public issue had been booked 12.05 times, the NII segment had been filled 10.70 times, and the QIB portion had received bids 0.06 times.
Giving the public issue a 'subscribe' tag, Anshul Jain, Head of Research at Lakshimishree Investment and Securities Ltd, said, “Western Carriers' IPO presents a compelling opportunity for investors seeking exposure to the burgeoning Indian logistics sector. The company's strong financial performance and strategic positioning in a rapidly growing market make it a promising investment prospect. With a proven track record of delivering consistent profitability and sustainable growth, Western Carriers has demonstrated its ability to navigate industry challenges and capitalize on emerging opportunities. The company's focus on operational efficiency, coupled with its strategic investments in technology, positions it well to meet the evolving demands of the logistics industry.”
"The IPO's valuation is also attractive, offering investors a favourable entry point. Given the company's strong fundamentals and growth prospects, subscribing to the IPO appears to be a strategic investment decision. However, it's important to conduct thorough due diligence and consider individual risk tolerance before investing," said Anshul Jain.
Assigning a 'subscribe' tag to the public issue, Akriti Mehrotra, Research Analyst at StoxBox, said, "The current issue is priced at a P/E of 16.8x on the upper band based on FY24 earnings and is relatively lower than its peers. Given its strong financials, strategic initiatives, and positioning to capitalize on the expanding rail-road multi-modal sector, we recommend a "SUBSCRIBE" rating for the issue with a medium to long-term investment perspective."
The public issue hit the Indian primary market on 13th September 2024 and it will remain open until 19th September 2024. This means the public issue will remain open until Thursday this week (according to BSE). Western Carriers India IPO allotment date is most likely on 20th September 2024, i.e., Friday this week. Following the ‘T+3’ listing rule, most Western Carriers India's IPO listing date is 24th September 2024, I.e. on Tuesday next week.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
