Western Carriers India IPO: The initial public offering (IPO) of logistics company Western Carriers is witnessing decent subscription from retail as well as non-institutional investors (NIIIs). The ₹492.88 crore book-built issue opened for subscription on Friday, September 13, and will remain open till Thursday, September 19. Share allotment is expected to be finalised on Friday, September 20, and the stock may be listed on the BSE and the NSE on Tuesday, September 24.
Shares of Western Carriers India are trading at a premium in the grey market, indicating investors are bullish on the IPO. According to stock market sources, shares of the company are trading at a premium of ₹50 in the grey market today, slightly down from ₹58 the previous day. Despite this dip, the premium remains well above last Friday’s level of ₹30. Considering today's grey market premium (GMP) and the issue's price band of ₹172, shares of Western Carriers India may be listed at ₹222, at a premium of 29.07 per cent.
By 4:45 pm on day 4 of bidding, the book build issue was subscribed 13.85 times, the retail portion was booked 18.55 times, the NII segment was filled 20.87 times, and the QIB portion received bids 0.14 times.
Experts and a brokerage firm appear positive about the mainboard issue due to the company's comfortable valuation and healthy growth prospects.
Choice Equity Broking has a 'subscribe' recommendation' on the stock. It said, “At a higher price band, Western Carriers India is demanding an EV/sales multiple of 1 time, which is at a discount to peer average of 2.4 times. Thus, the issue is attractively priced. Considering its market position among the private players and improving outlook of rail logistics post partial/full commencement of DFCs, we believe it is well-positioned to benefit from the expansion in the multi-modal freight transportation.”
Brokerage firm Anand Rathi Share and Stock Brokers, too, has a 'subscribe' recommendation on the issue.
"Over the years, the company plans to enhance its service delivery by robust growth and operational efficiency. At the upper price band, the company is valuing at a P/E of 21.8 times with a market cap of ₹ 17,536 million post-issue of equity shares and a return on net worth of 22.4 per cent. On the valuation front, we believe that the company is fairly priced. Thus, we recommend a 'subscribe' rating to the IPO," said Anand Rathi.
With a price band of ₹163 to ₹172 per share, the Western Carriers India IPO hit the Indian primary market on September 13, and it will remain open until September 19. The issue combines a fresh issue of 2.33 crore shares and an offer for sale (OFS) of 54 lakh shares. The company will raise ₹400 crore from the fresh issue of shares.
The company intends to use the net proceeds from the issue to pay its borrowings and fund its capital expenditure requirements. The share allotment is expected to be finalised on September 20, followed by tentatively listing shares on Tuesday, September 24.
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