Western Carriers India IPO receives tepid response on day 1 of bidding, retail portion fully booked; Latest GMP here

Western Carriers India IPO: The initial public offering (IPO) of logistics company Western Carriers Ltd. received a tepid response from investors on the first day of subscription. On Friday, September 13, the mainboard IPO was subscribed 79 per cent, with only the retail portion booked fully, according to BSE data. Western Carriers India IPO opened for subscription today (September 13) and the bidding window will close on Wednesday, September 18, 2024.

Western Carriers India IPO's issue size is ₹492.88 crore. The Kolkata-based multi-modal logistics solutions company has reserved not more than 50 per cent of the shares for qualified institutional buyers (QIB), not less than 15 per cent for non-institutional institutional investors (NIIs), and not less than 35 per cent for retail investors.

Also Read: Western Carriers India IPO day 1: GMP, review, subscription status, other details. Apply or not?

Western Carriers India IPO Subscription Status

On the first day of bidding, Western Carriers India IPO was subscribed 79 per cent. The portion reserved for retail investors was booked the highest at 1.41 times, the portion reserved for NIIs was booked 38 per cent, while the QIB portion was left unsubscribed by the end of the first day. The IPO received 1,64,59,617 share applications against 2,08,68,467 shares offered on Friday.

Western Carriers India IPO Details

Western Carriers India IPO combines a fresh issue of 2.33 crore shares with an offer for sale (OFS) of 54 lakh shares. The company intends to raise ₹492.88 crore from the IPO, including ₹400 crore from the fresh issue of shares. The company's promoters are Rajendra and Kanishka Sethia. 

The funds raised from the issue, amounting to ₹163.50 crore, will be used to repay debt, while ₹151.71 crore will be allocated for capital expenditure. The Western Carriers (India) IPO has JM Financial Limited and Kotak Mahindra Capital Company Limited as its book-running lead managers. Link Intime India Private Ltd serves as the issue's registrar.

Also Read: Western Carriers India IPO to open for subscription on Sept 13; price band set at ₹163-172 apiece

Western Carriers India IPO price band has been fixed at ₹163 to ₹172 per equity share with a face value of ₹5. The minimum lot size for an application is 87 Shares. With the issue's upper price band at ₹172, the minimum amount of investment required by retail investors is ₹14,964.

The company said it had raised ₹148 crore from anchor investors ahead of the Western Carriers India IPO by allocating 85,96,743 shares at the upper price band of ₹172 to 15 anchor investors. Kotak Mahindra, Motilal Oswal, Aditya Birla Sun were among the participants in the anchor book round.

The company intends to use the net proceeds from the issue to pay its borrowings and fund its capital expenditure requirements, including the purchase of commercial vehicles, specialised and normal shipping containers, and reach stackers.

Also Read: Western Carriers IPO: 10 key points you need to be aware of before you subscribe to ₹493 crore issue

Tentatively, Western Carriers (India) IPO basis of allotment of shares will be finalised on Thursday, September 19, and the company will initiate refunds on Friday, September 20, while the shares will be credited to the demat account of allottees on the same day following refund. Western Carriers India shares will likely be listed on BSE and NSE on Monday, September 23.

Western Carriers India Company Details

The company is the largest private, multimodal, rail-focused, 4PL asset-light logistics company in India based on container volumes handled/operated by private players in fiscal 2023. According to the ILattice Report, the company's market share in the domestic and EXIM markets, based on container volumes handled, was six per cent and two per cent, respectively, in fiscal 2023.

The business provides services in the following industries: engineering, chemicals, fast-moving consumer goods (FMCG), metals, oil and gas, and retail. Tata Steel, Hindalco Industries, Jindal Stainless, JSW Steel Coated Products, Bharat Aluminium Company Ltd., Vedanta, Hindustan Unilever Ltd. ("HUL"), and several others are among its clients.

Also Read: Western Carriers IPO: Firm garners ₹148 crore from anchor investors ahead of public issue

As per the red herring prospectus (RHP), the company's peers are Container Corporation of India Ltd (with a P/E of 47.73), Mahindra Logistics Ltd (with a P/E of (62.93)), and TCI Express Ltd (with a P/E of 32.48).

In the financial year ending on March 31, 2024, Western Carriers (India) Limited saw a three per cent increase in revenue and a 12 per cent rise in profit after tax (PAT) compared to the previous year ending on March 31, 2023.

Western Carriers India IPO GMP Today

Western Carriers India IPO GMP today or grey market premium is +57. This indicates Western Carriers India IPO share price was trading at a premium of ₹57 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Kross shares was ₹229 apiece, which is 33.14 per cent higher than the IPO price of ₹172.

The GMP ranges from Re 0 to ₹50, as indicated by experts at investorgain.com. 'Grey market premium' indicates investors' readiness to pay more than the issue price.