Western Carriers India IPO Opens for Subscription: GMP, Review, Subscription Status, Other Details. Apply or not?

West Carriers India IPO: Western Carriers India has launched its IPO today, Friday, September 13, with the aim of raising ₹492.88 crore. The book-building issue will remain open for subscriptions until Wednesday, September 18. The company has already raised ₹148 crore from anchor investors by allotting 85,96,743 shares at a maximum price of ₹172 to 15 anchor investors. Participants in this pre-IPO round include Kotak Mahindra, Motilal Oswal, and Aditya Birla Sun.

Western Carriers India IPO Subscription Status

As of 10:15 AM on Friday, BSE data shows that the IPO has been subscribed 0.06 times on its opening day. The portion reserved for retail investors was subscribed 0.11 times, while non-institutional investors subscribed 0.01 times. The Qualified Institutional Buyers (QIB) segment had not yet received any bids at that time.

10 Key Details of the Western Carriers India IPO

1. Western Carriers India IPO GMP: According to market sources, the current gray market premium (GMP) for the IPO is zero, indicating that shares are not trading at a premium in the gray market. Based on this, the stock is expected to list at the issue price of ₹172.
2. IPO Price Band: The price range for the IPO is set between ₹163 and ₹172 per share.
3. IPO Dates: The IPO opened for subscription today, Friday, September 13, and will close on Wednesday, September 18.
4. IPO Size: The IPO consists of a fresh issue of 2.33 crore shares and an Offer for Sale (OFS) of 54 lakh shares. The total size of the IPO is ₹492.88 crore, with ₹400 crore raised from the fresh issue.
5. Lot Size: Investors can apply for a minimum of 87 shares. At the upper price band of ₹172, the minimum investment required by retail investors is ₹14,964.
6. Allotment Date: The allotment of shares is expected to be finalized on Thursday, September 19. Successful applicants should see shares credited to their demat accounts by Friday, September 20. Refunds for unsuccessful applicants will also be processed on that day.
7. IPO Registrar: Link Intime India Private Ltd has been appointed as the official registrar for the IPO.
8. Listing Date: Shares of Western Carriers India are expected to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on Monday, September 23.
9. Use of Proceeds: The company plans to use the funds raised to repay loans and finance its operational needs, including the purchase of commercial vehicles, special transport equipment, regular containers, and stackers.
10. Company Overview: Western Carriers India is a multi-modal transportation company focused on rail and 4PL light assets. The company offers integrated, customized, end-to-end logistics services. As of March 31, 2024, the company served 1,647 clients across various sectors, contributing to revenues of ₹12,131.71 million, ₹10,966.25 million, and ₹10,560.68 million over the last three financial years, respectively, accounting for 71.97%, 67.15%, and 71.80% of total operations revenue.

Should You Apply for the Western Carriers India IPO?

Akriti Mehrotra, a research analyst at StoxBox, has issued a ‘subscribe’ recommendation for the IPO due to the company’s low valuation and growth potential. “At the upper price band, the IPO is priced at a PE ratio of 16.8 times FY24 earnings, which is relatively lower compared to its peers. With strong financials, strategic initiatives, and an investment in the rail sector, the company is well-positioned for long-term growth,” Mehrotra said.

Swastika Investmart also gave the IPO a ‘subscribe’ rating for long-term investors with high risk tolerance, highlighting the company’s steady financial growth and reasonable valuation. However, they caution that Western Carriers faces challenges, including a long payment cycle and operational risks.