Western Carriers IPO - Issue Details, Financials, Growth Strategies, Risks, Valuation And More: Anand Rathi

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Anand Rathi Report.Western Carriers India Ltd. will launch its initial public offering on Sept. 13 and will conclude on Sept. 18. The Kolkata-based multi-modal, rail-focused, 4PL asset-light logistics company has set the price band in the range of Rs 163-172 per share. The minimum order lot for bidding is 66.The Rs 492.9 crore IPO consists of a fresh issue of Rs 400 crore and an offer for sale of shares worth Rs 92.9 crore. .Objects of fresh Issue Prepayment or scheduled re-payment of a portion of certain outstanding borrowings availed by the company. Funding of capital expenditure requirements towards purchase of commercial vehicles; 40 feet specialized containers and 20 feet normal shipping containers; and reach stackers. General corporate purposes.StrengthsComprehensive and integrated multi-modal, end-to-end logistics solutionsStrategically positioned to capitalise on a fast-growing logistics market in IndiaExperience in delivering customised, end-to-end services and executing complex and customised projectsStrong customer relationships with a diverse customer base.Key Strategies: To Pursue inorganic growth on an opportunistic basisContinue to invest in infrastructure capabilitiesAcquire new customers and expand into new sectors and new geographiesStrong relationships with the existing customers.Key RisksThe company relies on a few key customers, especially in metals and FMCG. Any decline in revenue from these customers could severely impact its business and financial health. The business needs substantial working capital. Delays in customer payments or tighter payment terms from suppliers could strain cash flows.It relies heavily on technology. Any system disruptions or security breaches could lead to financial losses and damage its reputation. Western Carriers has unsecured loans that can be recalled at any time. If recalled, the company might not have enough funds to repay, affecting financial stability.The company’s logistics operations depend on external infrastructure like roads and ports. Any disruptions could harm its business operations..Valuation Western Carriers is a Multi-modal, rail-focused, 4PL asset-light logistics company. The company offers fully customizable, multimodal logistics solutions encompassing road, rail, water, and air transportation and a tailored range of value-added services. Over the years, the company plans to enhance its service delivery by robust growth and operational efficiency. At the upper price band company is valuing at P/E of 21.8x with a market cap of Rs 1754 crore post issue of equity shares and return on net worth of 22.4%. On the valuation front, we believe that the company is fairly priced. Thus, we recommend a “Subscribe” rating to the IPO.Click on the attachment to read the full IPO report:.Western Carriers IPO: All You Need To Know.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Western Carriers IPO - Issue Details, Financials, Growth Strategies, Risks, Valuation And More: Anand Rathi

The Rs 492.9 crore IPO will open on Sept. 12 and the company has set the price band in the range of Rs 163-172 per share.

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Western Carriers IPO - Issue Details, Financials, Growth Strategies, Risks, Valuation And More: Anand Rathi

The Rs 492.9 crore IPO will open on Sept. 12 and the company has set the price band in the range of Rs 163-172 per share.

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