Western Carriers (India) Ltd IPO has generated significant interest among investors. The IPO, which opened for subscription on September 13, is set to close today. It aims to raise ₹492.88 crores through a combination of a fresh issue and an offer for sale. The price band is fixed between ₹163 and ₹172 per share, making it accessible for a broad range of investors.
Main Points
Current Subscription Status
The subscription status has shown a remarkable increase over the past few days. By the end of Day 3, the IPO was subscribed 5.63 times overall, with retail investors leading the charge at 8.38 times subscription. Non-institutional investors (NIIs) subscribed 6.59 times, while qualified institutional buyers (QIBs) lagged behind at just 0.03 times.
This surge in subscriptions reflects strong retail interest, which is crucial for the success of any IPO. The minimum investment for retail investors requires purchasing one lot of 87 shares, amounting to approximately ₹14,964 at the upper price band.
Grey Market Premium (GMP)
As of today, the Grey Market Premium (GMP) for Western Carriers shares stands at ₹56. This indicates that shares are expected to list at around ₹228, suggesting a potential listing gain of approximately 33% from the upper price band. The GMP serves as an unofficial indicator of market sentiment and investor confidence in the stock’s future performance.
Key Financial Details
Western Carriers operates as a multi-modal, rail-focused logistics company and has established itself as a leader in the sector with a diverse client base that includes major players like Tata Steel, Hindalco Industries, and Coca-Cola India. The company reported revenues of ₹1,686 crore with a profit after tax (PAT) of ₹80 crore for FY24.The funds raised through this IPO will be allocated as follows:
- Debt repayment: ₹163.5 crore
- Capital expenditure: ₹152 crore for purchasing commercial vehicles and shipping containers
- General corporate purposes: Remaining funds
This strategic allocation aims to strengthen Western Carriers’ financial position and support its growth initiatives in the rapidly expanding logistics market in India.
Analyst Recommendations
Brokerage firms have varied opinions on whether to apply for this IPO. Some analysts recommend subscribing for long-term gains due to the company’s strong market positioning and growth potential. For instance, Anand Rathi has given a positive outlook based on Western Carriers’ operational efficiency and rising demand for logistics services. However, others caution that potential investors should consider the company’s financial challenges and limited market interest before making a decision.
Important Dates
- IPO Opening Date: September 13, 2024
- IPO Closing Date: September 18, 2024
- Allotment Date: Expected on September 19, 2024
- Listing Date: Anticipated on September 23, 2024
Investors should keep these dates in mind when planning their investment strategies.
