The initial public offering (IPO) of Kolkata-based logistics company Western Carriers (India) Ltd. opens for subscription today, September 13, and will remain available for public bidding until September 18, 2024.
Western Carriers (India) IPO price band
The company has set the IPO price range between Rs 163 and Rs 172 per share. At the upper end of this price band, Western Carriers will achieve a post-listing market capitalization of Rs 1,754 crore.
Western Carriers (India) IPO GMP
The grey market premium (GMP) for Western Carriers (India) remained nil as the IPO opened for subscription on Friday.
In the grey market, an unofficial platform where shares trade before official allotment and continue until the listing day, investors often track GMP to gauge potential listing prices. Despite the IPO launch, there has been no movement in the GMP for the company.
Western Carriers (India) IPO details
Western Carriers (India) has launched its initial public offering (IPO), which includes a fresh issue of equity shares worth Rs 400 crore and an Offer For Sale (OFS) of up to 54 lakh shares valued at Rs 92.88 crore by promoter Rajendra Sethia.
Retail investors can bid for a minimum lot size of 87 shares, with 35% of the IPO or Rs 172 crore worth of shares reserved for them. Meanwhile, 50% of the issue, worth Rs 246 crore, has been set aside for Qualified Institutional Bidders (QIB), and 15% or Rs 80 crore is reserved for non-institutional investors.
The proceeds from the fresh issue will be used to repay borrowings of Rs 163.5 crore and fund Rs 151.7 crore in capital expenditures for the purchase of commercial vehicles, containers, and reach stackers. The remaining funds will be allocated for general corporate purposes.
Western Carriers, established in March 2011, serves clients such as Tata Steel, Hindalco Industries, Vedanta, HUL, Coca-Cola India, and DHL, among others. The company’s revenue grew by 3%, while profit after tax (PAT) increased by 12% between the financial years ending March 31, 2023, and March 31, 2024.
Book Running Lead Managers?
JM Financial and Kotak Mahindra Capital are acting as Book Running Lead Managers, and Link Intime India is the registrar for the IPO. The allotment is expected to be finalized on September 19, with a tentative listing date of September 23, 2024, on the BSE and NSE.