Western Carriers IPO: ₹492 Crore Public Issue Goes Live; Gets Muted Respose By Investors

The Western Carriers (India) IPO went live for subscriptions from Friday, September 13. The price range for the initial public offering, which is scheduled to end on September 18, is Rs 163 to Rs 172 per share.

The Rs 492.88 crore initial public offering (IPO) consists of an offer for sale (OFS) component by promoter Rajendra Sethia worth up to 54 lakh equity shares, valued at Rs 93 crore, and a fresh issue of equity shares worth Rs 400 crore.

The proceeds from the new issue will be used for general corporate purposes, debt repayment, and funding requirements for the acquisition of commercial vehicles, reach stackers, and shipping containers.

Subscriptions status

The public issue of one of the major logistics company received a a muted start in subcription. The total issue was subscribed to only 0.31 times. Out of 2.08 crore shares offered in public issue, Bids received for only 65.47 lakh.

From QIB portion, no bids were received from the group. On the other hand, the RII (retail individual investors) have 1.04 crore shares reserved for them; out of the reseved portion for the RII, investors subscribed to only 63.12 lakh shares.

Anchor Investment

Investors including Kotak Mahindra Life Insurance Company, Aditya Birla Sun Life Insurance Company, Motilal Oswal Mutual Fund (MF), Aditya Birla Sun Life MF, Kotak MF, Nippon India MF, Societe Generale, BNP Paribas, and Citigroup Global Markets Mauritius contributed Rs 148 crore to the company on Thursday during the anchor round.

At the upper end of the price range, Rs 172 per unit, the company has allotted 85.97 lakh shares to 15 funds, bringing the total transaction size to Rs 148 crore.

Company's financials

As of the fiscal year 2024, the company's operating revenue was Rs 1,685 crore, and its net profit was Rs 80 crore.