Western Carriers (India) IPO Anchor Allocation at 30%

Western Carriers (India) IPO saw a positive anchor allocation response, with 30% of the total IPO size subscribed by anchor investors. Out of 28,655,813 shares on offer, anchors picked up 8,596,743 shares, demonstrating strong market confidence. The anchor allocation details were reported to the stock exchanges on 12th September 2024, just ahead of the IPO opening on 13th September 2024.

The book-built issue of ₹492.88 crores comprises a fresh issue of 23,255,813 shares aggregating ₹400.00 crores and an offer for sale of 5,400,000 shares aggregating ₹92.88 crores. The price band is set at ₹163 to ₹172 per share, with a face value of ₹5 per share. This includes a share premium of ₹167 per share at the upper end of the price band.
The anchor allocation process, which took place on 12th September 2024, saw strong participation from institutional investors. The entire anchor allocation was made at the upper end of the price band, ₹172 per share, indicating robust demand and confidence in the company's prospects.

After the anchor allocation, the overall allocation of the IPO looks as follows:

Notably, the 8,596,743 shares allocated to anchor investors were reduced from the original Qualified Institutional Buyers (QIB) quota. As a result, the QIB quota has been reduced from 50% before the anchor allocation to 20% after the allocation. This adjustment ensures that the overall allocation to QIBs, including the anchor portion, remains within regulatory limits.

The lock-in period for anchor investors is an important aspect of the allocation. For Western Carriers (India) Limited IPO, the lock-in details are as follows:

• Lock-in Period (50% Shares): 19th October 2024 
• Lock-in Period (Remaining Shares): 18th December 2024

This lock-in period ensures that anchor investors maintain their investments for a specified duration, stabilising the stock price after listing.

Anchor Investors in Western Carriers (India) IPO

Anchor investors are typically large institutional investors allotted shares in an IPO before it opens to the public. The anchor allocation process is a crucial part of the IPO, as it helps in price discovery and builds confidence among retail investors. The strong response from anchor investors often sets a positive tone for the public issue and can influence the overall subscription levels.

On 12th September 2024, Western Carriers (India) IPO completed the bidding for its anchor allocation. There was a robust response as the anchor investors participated in the book-building process. A total of 8,596,743 shares were allotted to 15 anchor investors. The allocation was done at the upper IPO price band of ₹172 per share, resulting in an overall anchor allocation of ₹147.86 crore. The anchors have already absorbed 30.00% of the total issue size of ₹492.88 crore, indicating strong institutional demand.

Out of the total allocation, 3,992,952 Equity Shares (i.e., 46.45% of the total allocation to Anchor Investors) have been allocated to 4 domestic mutual funds through a total of 6 schemes. The detailed and comprehensive report on the anchor allocation can be accessed on the BSE website.

Key IPO Details:

• IPO Size: ₹492.88 crores 
• Shares Allocated to Anchors: 8,596,743 
• Anchor Subscription Percentage: 30% 
• Listing Date: 23rd September 2024 
• IPO Opening Date: 13th September 2024

About Western Carriers (India) IPO and How to apply for Western Carriers (India) IPO 

Western Carriers (India) Limited, incorporated in March 2011, 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 provides 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.

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