The IPO of Western Carriers (India) will be sold between September 13-18 as shares will be offered in the range of Rs 163-172 apiece with a lot size of 87 shares and its multiples thereafter.
ncorporated in 2011, Western Carriers (India) is a multimodal, rail-focused, 4PL asset-light logistics company. The company offers fully customizable, multi-modal logistics solutions encompassing road, rail, water, and air transportation and a tailored range of value-added services to sectors such as metals, FMCG, pharmaceuticals, chemicals, engineering, oil and gas and retail.
Western Carriers (India) is looking to raise Rs 492.88 crore via IPO, which includes a fresh share sale of Rs 400 crore and offer-for-sale (OFS) of up to 54 lakh shares by its promoter Rajendra Sethia. The net proceeds from the issue shall be utilized towards repaying the debt, funding of capital expenditure; and general corporate purposes
Ahead of its IPO, Western Carriers (India) raised a total of Rs 147.86 crore from 15 anchor investors by allocating them 85.96 lakh equity shares. The anchor book includes names like Citigroup Global Markets, Integrated Core Strategies, Societe General, Kotak Mutual Fund (MF), Kotak Mahindra Life Insurance, Motilal Oswal MF, Nippon India MF, Aditya Birla Sun Life MF and others.
Western Carriers (Indian) provides chartering services to overseas destinations, stevedoring services at Indian ports, and coastal movement of cargo within India. It manages and handles the supply chain for increased imports, exports, and production levels for a leading metals and resource group company. The company served over 1,100 customers as of December 31, 2022.
The company's clientele includes names like Tata Steel, Hindalco Industries, Jindal Stainless, JSW Steel, Bharat Aluminium, Vedanta, Hindustan Unilever, Hindustan Coca Cola sBeverages, Tata Consumer Products, Wagh Bakri, CG Foods India, Cipla, Haldia Petrochemicals, Gujarat Heavy Chemicals, Oil and Gas, Brahmaputra Cracker and Polymer, Sheela Foam, DHL Logistics and more.
For the year ended on March 31, 2024, Western Carriers (India) reported a net profit of Rs 80.35 crore with a revenue of Rs 1,691.41 crore. The company reported a net profit of Rs 71.57 crore with a revenue of Rs 1,637.84 crore for the fiscal year 2022-23. The total market capitalization of Western Carriers (India) post-IPO shall stand at Rs 1753.63 crore.
JM Financial and Kotak Mahindra Capital Company are the book running lead managers of the Western Carriers (India) IPO, while Link Intime India is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE with Monday, September 23 as the tentative date of listing. Here's what brokerage firms said about the IPO of Western Carriers (India):
Anand Rathi Research
Rating: Subscribe
Western Carriers (India) offers fully customizable, multi-modal 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, said Anand Rathi Research.
"At the upper price band, the company is valuing at P/E of 21.8 times with a market cap of Rs 1,753.6 crore post issue of equity shares and return on net worth of 22.4 per cent. On the valuation front, we believe that the company is fairly priced. Thus, we recommend a 'subscribe' rating to the IPO," it added.
SBI Securities
Rating: Subscribe
The company is valued at FY24 P/E multiple of 20.9 times/21.8 times based on the lower and upper price band respectively on the post-issue capital. The company is amongst the largest 4PL asset light logistic companies in India and is one of the few players in India with the capability to deliver cost-efficient, time-bound, customized services and solutions, said SBI Securities.
"Post repayment of debt from the proceeds of the issue the company is also likely to save on finance costs. It is set to capitalize on industry growth trends driven by healthy demand for exports and imports. The issue appears to be fairly valued when compared with close peers on most valuation and financial matrices," it said with a 'subscribe for long term' rating.
Swastika Investmart
Rating: May Subscribe
The company has exhibited slow but consistent financial growth with a positive trajectory. The valuation is considered reasonable. The company faces a long payment cycle and is exposed to several operational risks, said Swastika Investmart with a 'may apply' rating is recommended for long-term investors with a high-risk tolerance, citing financial challenges and market limited interest.
StoxBox
Rating: Subscribe
The current issue is priced at a P/E of 16.8 times on the upper band based on FY24 earnings and is relatively lower than its peers, said StoxBox. "Given its strong financials, strategic initiatives, and positioning to capitalize on the expanding rail-road multi-modal sector, we recommend a 'subscribe' rating for the issue with a medium to long-term investment perspective," it added.
Chola Securities
Rating: Subscribe for listing gains
Western Carriers is the largest private multi-modal, rail-focused, 4PL, asset-light logistics company in India, based on container volumes handled by private players in FY23. The company boasts a strong customer base with market leaders in the FMCG, and metals sector as clients, said Chola Securities.