Apply Now for Western Carriers IPO: Price Band ₹163-₹172

Incorporated in March 2011, Western Carriers (India) Limited is a Multi-modal, rail-focused, 4PL asset-light logistics company. The company offers fully customisable, multi-modal logistics solutions encompassing road, rail, water, and air transportation and a tailored range of value-added services. Western Carriers serve sectors such as metals, fast-moving consumer goods (FMCG), pharmaceuticals, chemicals, engineering, oil and gas, and retail.

The company's clientele includes major corporations like Tata Steel, Hindalco Industries, Jindal Stainless, JSW Steel Coated Products, Bharat Aluminium Company, Vedanta, Hindustan Unilever, Hindustan Coca-Cola Beverages, Tata Consumer Products, Gujarat Tea Processors and Packers (Wagh Bakri), CG Foods India, Cipla, Materials Chemicals and Performance Intermediaries, Haldia Petrochemicals, Gujarat Heavy Chemicals, Brahmaputra Cracker and Polymer, Sheela Foam (Sleepwell), and DHL Logistics.

Western Carriers provide chartering services to overseas destinations, stevedoring services at Indian ports, and coastal cargo movement within India. They specialise in combining rail and road movements through an asset-light business model. As of 31st December 2022, the company served over 1,100 customers and had 1,350 employees in various departments.

The Objectives of the Issue

Western Carriers (India) Limited intends to utilise the Net Proceeds from the Fresh Issue towards the following objectives:

1. Debt Repayment: Prepayment or scheduled repayment of a portion of certain outstanding borrowings availed by the Company.
2. Capital Expenditure: Funding of capital expenditure requirements for the purchase of: a) Commercial vehicles, b) 40 feet specialised containers and 20 feet normal shipping containers, c) Reach stackers
3. General Corporate Purposes: For various corporate activities aligned with the company's strategic goals.

Highlights of Western Carriers (India) IPO

Western Carriers (India) IPO is set to launch with a book-built issue of ₹492.88 crores. The issue is a combination of a fresh issue and an offer for sale. Here are the key details of the IPO:

• The IPO opens for subscription on 13th September 2024 and closes on 18th September 2024.
• The allotment is expected to be finalised on 19th September 2024.
• Refunds will be initiated on 20th September 2024.
• Credit of shares to Demat accounts is also expected on 20th September 2024.
• The company will tentatively list on BSE and NSE on 23rd September 2024.
• The price band is set at ₹163 to ₹172 per share.
• The fresh issue comprises 2.33 crore shares, aggregating to ₹400.00 crores.
• The offer for sale comprises 0.54 crore shares, aggregating to ₹92.88 crores.
• The minimum lot size for application is 87 shares.
• Retail investors need to invest a minimum of ₹14,964.
• The minimum investment for small NII (sNII) is 14 lots (1,218 shares), amounting to ₹209,496.
• The minimum investment for big NII (bNII) is 67 lots (5,829 shares), amounting to ₹1,002,588.
• JM Financial Limited and Kotak Mahindra Capital Company Limited are the book running lead managers for the IPO.
• Link Intime India Private Ltd serves as the registrar.

Western Carriers (India) IPO - Key Dates

The cut-off time for UPI mandate confirmation is 5:00 PM on 18th September 2024. This deadline is crucial for investors to ensure their applications are processed successfully. Investors must complete their applications well before this deadline to avoid any last-minute technical issues or delays.

Western Carriers (India) IPO Issue Details/Capital History

The Western Carriers (India) IPO is scheduled from 13th September to 18th September 2024, with a price band of ₹163 to ₹172 per share and a face value of ₹5. The total issue size is 28,655,813 shares, raising up to ₹492.88 crores. This includes a fresh issue of 23,255,813 shares aggregating to ₹400.00 crores and an offer for sale of 5,400,000 shares aggregating to ₹92.88 crores. The IPO will be listed on both BSE and NSE, with the shareholding increasing from 78,699,400 pre-issue to 101,955,213 post-issue.

Western Carriers (India) IPO Allocation & Minimum Investment Lot Size

The IPO shares are allocated across different investor categories as follows:

Investors can place bids for a minimum of 87 shares, with additional bids required in multiples of this figure. The table below illustrates the minimum and maximum investment amounts for retail investors and HNIs, expressed in shares and monetary values.

SWOT Analysis: Western Carriers (India) Ltd

Strengths:

• Multi-modal logistics solutions offering customisable services
• Strong presence in various sectors, including metals, FMCG, and pharmaceuticals
• An asset-light business model combining rail and road movements
• Diverse and prestigious client base, including major corporations
• Extensive network covering road, rail, water, and air transportation

Weaknesses:

• Dependence on specific sectors for revenue
• Potential vulnerability to economic cycles affecting client industries
• Competitive market with established players

Opportunities:

• Growing demand for integrated logistics solutions
• Potential for expansion into new geographical markets or sectors
• Increasing focus on supply chain optimisation by businesses
• Government initiatives promoting logistics sector growth

Threats:

• Intense competition in the logistics industry
• Regulatory changes affecting transportation and logistics operations
• Economic downturns impacting client industries
• Potential disruptions due to technological advancements in logistics

Financial Highlights: Western Carriers (India) Ltd

Below are the consolidated financial results for the Fiscal years FY24, FY23, and FY22:

Western Carriers (India) Limited has shown consistent financial growth over the past three fiscal years. The company's assets have grown significantly, increasing from ₹4,903.29 lakhs in FY22 to ₹7,540.09 lakhs in FY24, representing a growth of about 53.8% over two years. This increase in assets indicates the company's operational capabilities and infrastructure expansion.

Revenue has seen steady growth, rising from ₹14,757.89 lakhs in FY22 to ₹16,914.1 lakhs in FY24, marking an increase of 14.6% over two years. The year-over-year growth from FY23 to FY24 was 3%, indicating continued positive performance despite potential market challenges.

The company's profitability has shown a consistent upward trajectory. Profit after tax rose from ₹611.29 lakhs in FY22 to ₹803.47 lakhs in FY24, representing a growth of 31.4% over two years. The year-over-year growth in PAT from FY23 to FY24 was 12%, showing improved operational efficiency and cost management.

Net worth has shown strong growth, increasing from ₹2,575.82 lakhs in FY22 to ₹3,983.62 lakhs in FY24, a growth of about 54.7% over two years. This increase reflects the company's ability to generate and retain earnings, strengthening its financial position.

Total borrowings have increased from ₹1,503.96 lakhs in FY22 to ₹2,659.98 lakhs in FY24, an increase of about 76.9%. While this represents a significant increase, it should be viewed in the context of the company's asset growth and improved profitability.