Western Carriers (India) IPO is a book-built issue worth ₹492.88 crore, comprising a fresh issue of 2.33 crore shares, raising ₹400 crore, and an offer for sale of 0.54 crore shares, raising ₹92.88 crore.
The IPO opens for subscription on September 13, 2024, and closes on September 18, 2024. Allotment of shares is expected to be finalised on September 19, 2024, with the listing anticipated on BSE and NSE on September 23, 2024.
The price band for the IPO is set between ₹163 and ₹172 per share. Retail investors can apply for a minimum of 87 shares, amounting to an investment of ₹14,964. For sNII, the minimum application is 14 lots (1,218 shares) at ₹209,496, while bNII requires a minimum investment of ₹10,02,588 for 67 lots (5,829 shares).
JM Financial Limited and Kotak Mahindra Capital Company Limited are the book-running lead managers, and Link Intime India Private Ltd is the registrar for this IPO.
Industry Outlook:
- The Indian logistics sector is projected to grow at a CAGR of 11%, reaching ₹30 trillion by Fiscal 2027. This growth, driven by rising domestic demand and government initiatives like 'Aatmanirbhar Bharat,' might benefit Western Carriers (India) Limited.
- MSMEs contribute around 30% to India's GDP, driving demand for logistics services. Western Carriers (India) Limited can benefit from the rise in manufacturing output.
Western Carriers (India) IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- A portion of the funds will be used to prepay or repay existing borrowings, helping the company reduce debt obligations.
- Funds will be allocated towards purchasing commercial vehicles, specialised containers, and reach stackers, enhancing the company's operational capacity.
- The remaining funds will be utilised for general corporate purposes.
About Western Carriers (India) Limited
Western Carriers (India) Limited is a leading logistics company in India, recognised for its multi-modal, rail-focused, 4PL asset-light business model. Established over 5 decades ago, the company offers fully integrated logistics solutions, covering road, rail, water, and air transport.
It specialises in providing end-to-end supply chain services, including value-added options such as inventory planning, warehouse management, cargo handling, packaging, and customs clearance. The company serves various industries, including metals, fast-moving consumer goods (FMCG), pharmaceuticals, chemicals, engineering, oil and gas, and retail.
Some of its notable clients include industry giants such as Tata Steel, Hindalco, Vedanta, Hindustan Unilever, and Cipla. Western Carriers' scalable solutions are designed to meet specific customer needs, helping clients streamline their logistics processes efficiently. Its long-standing reputation for reliability and customer-centric services has earned it recognition through awards and partnerships with top industry players.
Peer Details
The companies considered by Western Carriers (India) Limited as its peers include:
- Container Corporation of India Limited
- Mahindra Logistics Limited
- TCI Express Limited
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Contact Details of Western Carriers (India) IPO
- Registered office: 2/6 Sarat Bose Road 2nd Floor, Kolkata 700 020, West Bengal, India
- Phone: +91 33 2485 8519
- E-mail: investors@westcong.com
IPO Financials
| Particulars | Year ending on March 31, 2024 | Year ending on March 31, 2023 |
|---|---|---|
| Revenue from Operation (in ₹ million) | 16,857.69 | 16,330.63 |
| Profit After Tax (PAT) (in ₹ million) | 803.47 | 715.65 |
| Current Ratio (x) | 1.91 | 1.91 |
| Net Worth (in ₹ million) | 3,983.62 | 3,186.07 |
| Total Borrowings (in ₹ million) | 2,659.98 | 2,104.71 |
| Debt to Equity Ratio(x) | 0.67 | 0.66 |
| Return on Capital Employed (RoCE) (%) | 29.23 | 29.71 |
| EBITDA (in ₹ million) | 1,518.24 | 1,264.49 |
Know before investing
Strengths
6Western Carriers provides customised, cost-effective, and time-bound logistics services.
Expertise in multi-modal logistics offers seamless, end-to-end solutions.
Asset-light model ensures flexible and scalable logistics operations across sectors.
Strong customer relationships drive long-term growth and client retention.
Strategically positioned to capitalise on India's growing logistics market.
Proven track record of delivering consistent growth and profitability.
Risks
6Dependency on a few key customers exposes Western Carriers to revenue risks.
Losing key management personnel could adversely impact Western Carriers' business growth.
Relying on third-party providers could disrupt Western Carriers' operations.
Competitive market pressures may lower Western Carriers' profit margins.
Short-term customer contract terminations could affect Western Carriers' revenue.
Global trade fluctuations may negatively impact Western Carriers' operations.
