Western Carriers India Limited: Upcoming IPO Details
Western Carriers India Limited, a prominent player in the logistics and transportation sector, is gearing up for its Initial Public Offering (IPO). The company has set a price band ranging from Rs 163 to Rs 172 per share for this public issue. The IPO is scheduled to open on September 13 and will close on September 18, with anchor book bidding commencing on September 12. Through this IPO, Western Carriers aims to raise approximately Rs 492.88 crore, which comprises both fresh equity shares and an offer for sale (OFS).
IPO Structure and Financial Goals
The upcoming IPO will issue a total of 2.32 crore fresh equity shares, valued at Rs 400 crore. Additionally, the issue includes 54 lakh equity shares, estimated at Rs 92.88 crore, that will be sold through the OFS, with promoter Rajendra Sethia selling a portion of his shares.
Utilization of Funds
Western Carriers plans to allocate Rs 163.50 crore of the funds raised from the IPO to repay existing debts. Moreover, the company will direct Rs 151.71 crore towards capital expenditure, as part of its strategic growth plans. As of July 2024, Western Carriers reported an outstanding borrowing of Rs 352.72 crore, emphasizing the need for effective financial management.
Overview of Western Carriers India
Based in Kolkata, Western Carriers India has established itself as India’s largest private, multi-modal, rail-focused, fourth-party logistics (4PL) firm by container volume. The company holds a 6% share in the domestic market and a 2% share in the EXIM (Export-Import) market. With extensive expertise in multi-modal transport across road, rail, and maritime channels, it adeptly caters to both domestic and international cargo transportation needs.
Business Model
Western Carriers operates on a scalable, asset-light model, offering tailored third-party (3PL) and fourth-party logistics (4PL) solutions that meet the complex demands of modern supply chains. The company’s service portfolio includes comprehensive end-to-end logistics solutions, along with a range of value-added services designed to enhance operational efficiency and respond to customer needs.
Financial Performance
| Financial Year | Revenue (Rs crore) | Net Profit (Rs crore) |
|---|---|---|
| FY24 | 1685.77 | 80.35 |
| FY23 | 1633.06 | 71.57 |
Key Clients and Market Position
Western Carriers India boasts a diverse portfolio of key clients including industry giants like Tata Steel, Hindalco Industries, Vedanta, and Coca-Cola India, as well as national brands such as Hindustan Unilever (HUL) and Tata Consumer Products. This expansive clientele not only showcases the company’s broad service capabilities but also enhances its reputation across the logistics sector.
Conclusion
As Western Carriers India prepares for its IPO, it emphasizes a commitment to growth and financial stability. With robust financials and a strong market presence, investors are keenly watching the upcoming public issue. The involvement of reputable underwriters such as JM Financial and Kotak Mahindra Capital Company further underscores the confidence in Western Carriers’ growth trajectory.
