Western Carriers IPO: All You Need To Know
The proceeds will be used for prepayment or repayment of a portion of certain outstanding borrowings and funding of capex requirements.
The initial public offering of Western Carriers (India) Ltd. is set to open for subscription on Friday, with the company looking to raise Rs 492.9 crore. The IPO consists of a fresh issue of Rs 400 crore and an offer for sale of shares worth Rs 92.9 crore.
The price band has been set at Rs 163–172 per share for the issue, which will close on Sept. 19, with the listing expected to take place on Sept. 23. The market value of the company at the upper end of the price band is Rs 1,754 crore.
Issue Details
Issue opens: Sept. 13
Issue closes: Sept. 19
Issue price: Rs 163–172 per share.
Fresh issue: Rs 400 crore.
Offer for sale: Rs 92.9 crore.
Total issue size: Rs 492.9 crore.
Use Of Proceeds
Prepayment or scheduled repayment of a portion of certain outstanding borrowings availed by the company.
Funding of capital-expenditure requirements towards purchase of commercial vehicles, 40-feet specialised containers and 20-feet normal shipping containers and reach stackers.
General corporate purposes.
Business Overview
Commencing its operations in 2011, WCIL 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.
The company has long-standing relationships with customers across varied sectors such as metals, fast-moving consumer goods, pharmaceuticals, chemicals, engineering, oil and gas, and retail.
The company's domestic and export-import market share, based upon its container volumes handled, stood at 6% and 2% respectively in fiscal 2023.
The company provides chartering services to overseas destinations, stevedoring services at Indian ports, and coastal movement of cargo within India. They specialise in combining rail with road movements through an asset-light business model.
Risk Factors
The company depends on a limited number of key customers for a majority of its revenues, which exposes it to a high risk of customer concentration.
The business depends significantly on customers in the metals and FMCG industries and is highly dependent on the performance of these industries
The company experiences significant working capital requirements and inability to meet may impact operations.
The business operates in a highly competitive and fragmented industry, wherein it faces competition from small local players, unorganized players and other third-party logistics providers.
