Western Carriers debuts at Rs 171/sh, marginally lower than issue price, surges 3% post-listing

Western Carriers (India) Ltd. made its debut on the stock exchanges today, listing at Rs 171 per share, marginally below its issue price of Rs 172. The initial listing price reflected a slight dip of 0.58 per cent compared to the upper price band of the IPO . However, the stock quickly gained traction, rising by 2.9 per cent to reach an intraday high of Rs 177 per share post-listing.

The IPO , which opened for bidding between September 13 and September 19, 2024, received positive investor response. The issue size totaled Rs 492.88 crore, comprising a fresh issue of 2.33 crore shares worth Rs 400 crore and an offer for sale of 0.54 crore shares amounting to Rs 92.88 crore.

The price band for the IPO was set between Rs 163 and Rs 172 per share. The minimum lot size for retail investors was 87 shares, requiring an investment of Rs 14,964. The minimum investment for small non-institutional investors (sNIIs) was Rs 209,496, while large non-institutional investors (bNIIs) required a minimum investment of Rs 1,002,588.

JM Financial Limited and Kotak Mahindra Capital Company Limited acted as the book-running lead managers for the IPO , with Link Intime India Private Ltd serving as the registrar.

IPO Reservation

Western Carriers (India) allocated a total of 2,86,55,813 shares for the IPO , with a breakdown as follows:

• 20 per cent for qualified institutional buyers (QIBs)
• 15 per cent for non-institutional investors (NIIs)
• 35 per cent for retail individual investors (RIIs)
• 30 per cent for anchor investors.

Western Carriers (India) Ltd., incorporated in March 2011, is a multi-modal, rail-focused logistics provider with an asset-light business model. The company specialises in providing customisable logistics solutions across road, rail, water, and air transportation. Its value-added services cater to key sectors including metals, FMCG, pharmaceuticals, chemicals, and oil and gas.

Notable clients include Tata Steel, Hindalco, JSW, Vedanta, Hindustan Unilever , and Cipla. The company’s operations also include chartering services to international destinations and coastal cargo movement within India.

As of December 31, 2022, Western Carriers (India) served over 1,100 customers and employed 1,350 staff across various departments.

Objectives of the IPO

The proceeds from the IPO will be used primarily for:

• Prepayment or scheduled repayment of certain outstanding borrowings.
• Funding capital expenditure, including the purchase of commercial vehicles, specialised containers, and reach stackers.
• General corporate purposes.