Western Carriers (India) IPO: issue dates, price, and lot size

As investors seek opportunities in the stock market, exploring new IPOs can offer valuable prospects. The Western Carriers (India) IPO is generating interest among potential investors looking to expand their portfolios. For those considering IPO investment, understanding the details of this offering is crucial. With numerous upcoming IPOs to invest in, evaluating each one carefully can help in making well-informed decisions. Read this blog to get insights on Western Carriers (India) IPO.

Western Carriers (India) IPO details

The Western Carriers (India) IPO is a book-built issue valued at ₹492.88 crore. This offering includes a fresh issue of 2.33 crore shares worth ₹400 crore and an offer for sale of 0.54 crore shares amounting to ₹92.88 crore.

For those considering IPO investment, the Western Carriers (India) IPO date is on September 13 2024, and the subscription window ends on September 18 2024. The finalisation of allotments is anticipated on Thursday, September 19 2024. This IPO will be listed on both BSE and NSE, with the tentative listing date set for Monday, September 23 2024. 

Key dates of the Western Carriers IPO

The Western Carriers (India) IPO has a price band set between ₹163 and ₹172 per share. Retail investors can apply with a minimum lot of 87 shares, requiring an investment of ₹14,964. For Small and Medium Investors (sNII), the minimum investment is ₹209,496 for 14 lots (1,218 shares), while for Big Institutional Investors (bNII), it's ₹1,002,588 for 67 lots (5,829 shares).

Jm Financial Limited and Kotak Mahindra Capital Company Limited are the lead managers for this IPO, and Link Intime India Private Ltd is the registrar.

Western Carriers (India) Limited: Company overview

Founded in March 2011, Western Carriers (India) Limited is a multi-modal logistics provider focusing on rail transport within an asset-light 4PL framework. The company delivers tailored logistics solutions across road, rail, water, and air transport, serving various sectors, including metals, FMCG, pharmaceuticals, chemicals, and retail.

Western Carriers (India) caters to notable clients such as Tata Steel, Hindalco, Jindal Stainless, JSW, BALCO, Vedanta, Hindustan Unilever, Coca-Cola India, Tata Consumer, Wagh Bakri, CG Foods, Cipla, MCPI, Haldia Petrochemicals, GHCL, BCPL, Sheela Foam, and DHL Logistics.

The company offers chartering services to international destinations, stevedoring at Indian ports, and coastal cargo movements. It excels in integrating rail and road transport through an asset-light model and managing supply chains for significant imports, exports, and production activities. As of December 31, 2022, Western Carriers served over 1,100 customers and employed 1,350 people.

Financial performance

Western Carriers (India) Limited experienced a 3% rise in revenue and a 12% increase in profit after tax (PAT) for the financial year ending March 31 2024, compared to the previous year. The market capitalisation for the Western Carriers (India) IPO stands at ₹1,753.63 crore. The Western Carriers (India) IPO GMP stands at ₹0 currently.

*Amount in ₹ Crores

Strengths of the Western Carriers IPO

Western Carriers (India) Limited stands out for several reasons:

• Customisable multi-modal solutions: The company offers flexible logistics services across road, rail, water, and air transportation, tailored to meet diverse client needs.
• Sector presence: With a robust presence in industries such as metals, FMCG, and pharmaceuticals, Western Carriers caters to crucial sectors, enhancing its market reach.
• Asset-light model: Their innovative business model integrates rail and road transport without heavy asset investment, optimising efficiency and cost-effectiveness.
• Prestigious clientele: The company serves a range of high-profile clients, including Tata Steel, Hindalco, and Hindustan Unilever, which underscores its industry credibility.
• Extensive network: Western Carriers boast a comprehensive logistics network, facilitating seamless movement across multiple transportation modes.

Weaknesses of the Western Carriers IPO

Despite these strengths, the company faces certain challenges:

• Revenue dependency: Reliance on specific sectors for revenue could limit financial stability if those sectors experience downturns.
• Economic vulnerability: The company's performance is susceptible to economic fluctuations that impact client industries and potentially affect overall revenue.
• Market competition: The logistics sector is highly competitive, with several established players posing significant challenges to gaining market share.

Western Carriers (India) IPO review

Western Carriers (India) Limited has strong potential for growth, driven by the increasing demand for well-integrated logistics solutions and the opportunity to expand into new geographical markets. 

As businesses focus on supply chain optimisation and the government supports logistics sector development, the company is well-positioned for future growth. However, challenges persist. Intense competition within the logistics industry, coupled with regulatory changes, may pose operational risks. 

Economic downturns and rapid technological advancements could also disrupt the company's operations. Overall, Western Carriers' adaptability and asset-light model provide a solid foundation, but success will depend on navigating industry threats while seizing emerging opportunities.

Key takeaways

In a dynamic logistics landscape, adaptability and foresight are key to sustained growth. As companies evolve and industries shift, staying ahead requires access to the right tools and opportunities. 

Exploring platforms that provide seamless stock trading and investment options can offer valuable insights into the broader market trends. For those interested in tracking developments within this space or diversifying their portfolio, platforms like Ventura provide a comprehensive way to stay engaged with emerging opportunities in various sectors, including logistics.

Western Carriers IPO FAQs

1. What is the lot size for Western Carriers (India) IPO?

The lot size for Western Carriers (India) IPO is 87 shares. Retail investors need a minimum investment of ₹14,964, while sNII requires 14 lots (1,218 shares) amounting to ₹209,496, and bNII needs 67 lots (5,829 shares), totalling ₹1,002,588.

2. When will the Western Carriers (India) IPO allotment be finalised?

The allotment for Western Carriers (India) IPO is expected to be finalised on Thursday, September 19, 2024, with the listing tentatively set for Monday, September 23, 2024.

3. Who are the book-running lead managers for the Western Carriers (India) IPO?

Jm Financial Limited and Kotak Mahindra Capital Company Limited are the book-running lead managers for the Western Carriers (India) IPO.