Western Carriers made a subdued entry on Dalal Street, listing at a slight discount on Tuesday. The company’s shares began trading at Rs 170 on the BSE, down 1.16% from its issue price of Rs 172. On the NSE, the stock opened at Rs 171, a marginal decrease of 0.6%.
Although the listing was weak, the IPO attracted significant investor interest, with oversubscription reaching nearly 31 times, mainly driven by non-institutional investors.
The funds raised from the IPO will be utilized to repay existing debt, finance capital expenditures for acquiring commercial vehicles, containers, and reach stackers, and cover general corporate expenses.
Western Carriers Shares Slip on Market Debut
Western Carriers (India) shares had a slow start on the stock market, listing at a lower price than expected. On the Bombay Stock Exchange (BSE), the shares opened at Rs 170 each, which is about 1.16% less than the issue price of Rs 172 set during the IPO (Initial Public Offering).
Similarly, on the National Stock Exchange (NSE), the shares started trading at Rs 171, showing a slight drop of Rs 1 or 0.58% compared to the issue price.
This means that investors who bought shares during the IPO saw a small loss of about 1% per share on the first day of trading. Despite the initial dip, it’s important for investors to keep a long-term view of the stock’s performance, as short-term fluctuations are common during a company’s market debut.
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Western Carriers (India) IPO
Western Carriers (India) is expected to make a modest debut in the stock market, with its shares trading at a premium of Rs 16, or 9.33%, in the grey market, according to market trackers.
The company’s IPO includes a fresh issue of 23,255,813 shares and an offer for sale of 5,400,000 shares. The price range for the IPO was set between Rs 163 and Rs 172, with a lot size of 87 shares. The subscription period began on Friday, September 13, 2024, and closed on Thursday, September 19, 2024.
Investor interest in the IPO was solid, with the offering being oversubscribed 30.57 times by the end of the subscription period. Non-Institutional Investors led the way with a subscription of 44.71 times, followed by Qualified Institutional Buyers (QIBs) at 27.99 times, and Retail Individual Investors (RIIs) at 25.95 times, according to data from the NSE.
About Western Carriers
Western Carriers is a leading logistics provider in India, with an extensive network of over 50 branch offices and four zonal offices across 23 states. The company operates 16 warehouses in 12 states and manages over 55 major public rake handling points, ensuring efficient first-mile and last-mile connectivity. Their services cater to diverse industries, including metals, FMCG, pharmaceuticals, chemicals, and oil & gas.
As of March 31, 2024, Western Carriers served 1,647 clients, including industry giants like Tata Steel, Hindalco Industries, HUL, and DHL. The company’s revenue from operations increased by 4% in FY24, reaching Rs 1,686 crore, while profit after tax saw a 12% rise to Rs 80.3 crore.
Western Carriers boasts a strong customer retention rate, with 80% of its FY24 revenue generated from clients who have partnered with the company for over three years. Notably, the top 10 customers maintained a 100% retention rate. JM Financial and Kotak Mahindra Capital Company were the lead managers for its IPO.
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FAQs
Q.1. What was the issue price of Western Carriers (India) shares during the IPO?
Ans. The issue price for Western Carriers (India) shares was set at Rs 172.
Q.2. How did Western Carriers (India) shares perform on their debut?
Ans. Western Carriers (India) shares listed at Rs 170 on the BSE and Rs 171 on the NSE, reflecting a slight discount from the issue price.
Q.3. What was the subscription level for the Western Carriers IPO?
Ans. The IPO was oversubscribed nearly 31 times, with significant participation from non-institutional investors.
Q.4. What will the funds raised from the IPO be used for?
Ans. The funds will be used to repay existing debt, finance capital expenditures for acquiring vehicles and containers, and cover general corporate expenses.
Q.5. Who were the lead managers for the Western Carriers IPO?
Ans. JM Financial and Kotak Mahindra Capital Company served as the lead managers for the IPO.
