Western Carriers (India) Ltd, which filed draft red herring prospectus (DRHP) in June, has received final approval from capital market regulator Securities and Exchange Board of India (SEBI) to raise funds via initial public offering (IPO).
Western Carriers (India) Ltd is country's largest largest private, multi-modal asset-light logistics company.
According to a SEBI update today, the Western Carriers IPO received its observations letter on Friday, September 22.
As per company's DRHP, Western Carriers IPO consists of an offer for sale (OFS) component of up to 93.29 lakh equity shares by the promoter Rajendra Sethia and a fresh issue of equity shares totaling up to ₹500 crore.
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The company plans to use the net proceeds from the new issue to pay off or schedule the repayment of a portion of certain outstanding debt totaling ₹200 crore; to fund the capital expenditure requirements of ₹186 crore for the purchase of commercial vehicles, 40-foot specialty containers, 20-foot standard shipping containers and reach stackers; and to use the remaining funds for general corporate purposes.
The issue's book-running lead managers (BRLM) are Kotak Mahindra Capital Company Ltd and JM Financial Ltd. The equity shares are proposed to be listed on BSE and NSE.
Western Carriers had a customer base of over 1100 as of December 31, 2022, In a variety of industries, including metals and mining, FMCG, pharmaceuticals, construction materials, chemicals, oil and gas, utilities, and others.
Western has a pan-India presence through over 50 branch offices and four zonal offices across 23 states in India. The company’s warehouses are located across 10 states and it operates at over 55 major public rake handling points spread across India.
As of fiscal 2022, the company's revenue from operations was ₹1,470 crore, with a profit after tax of ₹61 crore.
