Western Carrier India Limited is coming with an IPO consisting of a fresh issue of 2.33 crore shares worth INR 400 crores and an offer to sell 0.54 crore shares worth INR 92.88 crores. The company aims to prepay borrowings, fund capital expenditures for vehicles and containers, and cover general purposes. 

Western Carriers India Ltd IPO – Important Dates

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Western Carriers India Ltd IPO – Company Profile 

Western Carriers Limited is the largest private, multimodal, rail-focused 4PL asset-light logistics company in India. In fiscal 2023, it handled 6% of domestic and 2% of EXIM container volumes, with expertise in road, rail, and sea logistics. 

They operate a scalable, asset-light business model, offering customized 3PL and 4PL logistics solutions with end-to-end integration. Their services address complex logistics needs, providing value-added services across the supply chain for customers. 

Established in 1972 as a rail-focused logistics business, the company has evolved over 50 years to offer end-to-end, customized, multimodal logistics solutions, integrating road, rail, water, and air logistics with value-added services. 

Western Carriers India Ltd IPO Fundamental Analysis 

Western Carriers India Limited’s financial analysis reveals a mixed performance. Revenue has steadily increased, accompanied by improved profitability and EPS growth, while the company’s financial position shows strengthened liquidity and reduced debt reliance. 

1. Revenue Trend: The revenue increased from ₹14,708.75 million in March 2022 to ₹16,330.63 million in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 16,857.69 million.  

2. Equity and Liabilities: Equity has shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing. 

3. Profitability: The profit after tax (PAT) has increased from ₹611.29 million in March 2022 to ₹715.65 million by March 2024. The rise in profitability could be a source of confidence for investors. 

4. Earnings per Share (EPS): The diluted EPS has also increased from ₹7.77 in March 2022 to ₹10.21 by March 2024, reflecting higher earnings per share for investors. 

5. Return on Net Worth (RoNW): The RoNW has reduced from 23.73% to 20.17%, indicating a decrease in the company’s ability to generate returns on shareholder equity. 

6. Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations. 

Western Carriers India Ltd IPO Financial Analysis 

Western Carriers India Ltd IPO Peer Comparison 

Western Carriers India Limited shows strong profitability and liquidity, while Container Corporation of India Limited exhibits robust performance. Mahindra Logistics faces negative returns, and TCI Express demonstrates high earnings and solid equity returns. 

Western Carriers India Ltd IPO Objective 

The main objective of Western Carriers India Limited is to prepay outstanding borrowings and fund capital expenditures for purchasing commercial vehicles and specialized containers, as well as reach stackers to support its logistics operations and growth. 

1. Prepayment or scheduled repayment of a portion of certain outstanding borrowings availed by their company: The company intends to utilize INR 163.50 crores from the net proceeds for prepayment or scheduled repayment of a portion of its outstanding borrowings, reducing its overall debt and improving financial flexibility. 

2. Funding of capital expenditure requirements of the company towards the purchase of: 

(i) commercial vehicles: The company plans to utilize INR 101.74 crores from the net proceeds to purchase trucks and flatbed trailers, enhance operational efficiency in freight handling, support multimodal transportation, and fulfill contract requirements to replenish its fleet. 

(ii) 40-foot specialized containers and 20-foot normal shipping containers: The company aims to utilize INR 34.54 crores from the net proceeds to purchase 40-foot specialized containers and 20-foot standard shipping containers, enhancing multimodal transportation capacity and improving cost efficiency for handling larger goods. 

(iii) Purchase of reach stackers: The company plans to use INR 15.44 crores from the net proceeds to purchase reach stackers, which will improve container handling efficiency through power lift systems that reduce energy consumption while enhancing the handling of containerized bulk materials. 

3. General corporate purposes: The company plans to use the net proceeds for general corporate purposes, including funding strategic initiatives, growth opportunities, working capital requirements, business development expenses, and meeting ongoing corporate needs. 

Western Carriers India Ltd IPO Risks And Challenges 

Western Carriers India Limited’s risk includes heavy reliance on key customers in metals and FMCG industries, potential disruptions in logistics infrastructure, and the impact of payment delays or defaults, which could adversely affect cash flows and financial stability. 

• They rely heavily on a few key customers, primarily in the metals and FMCG industries, making them vulnerable to industry performance. A revenue decline from these customers could negatively impact their business, operations, and financial condition. 

• Operating in the Indian logistics industry, they face risks from factors affecting industry growth and rely on uninterrupted logistics infrastructure. Disruptions or deficiencies, including freight and container traffic issues, could harm their operations and brand reputation. 

• Delays or defaults in customer payments or tightened payment terms from third-party providers could negatively impact their cash flows. This may lead to significant working capital requirements, adversely affecting their business, cash flows, and financial condition. 

Western Carriers India Ltd IPO – Industry & Market Potential 

The Indian logistics industry is projected to grow steadily at a CAGR of approximately 11%, underscoring its crucial role in advancing India’s economic development and aligning with government goals for infrastructure and efficiency.

The sector’s expansion is driven by increased investments in transportation, warehousing, and supply chain management, which are pivotal for enhancing logistical capabilities and meeting growing demand across various industries. 

India benefits from healthy economic growth, strong FDI, increased public infrastructure spending via policies like the National Logistics Plan and Gati Shakti, record merchandise exports of ₹31.8 trillion (US$418 billion), and a ‘Make in India’ initiative that could potentially contribute 25-30% to GDP by 2025. 

Western Carriers India Ltd IPO – Type of Offer 

Western Carriers India Limited plans a fresh issue of shares, seeking INR 400 crores to prepay borrowings, fund capital expenditures for vehicles and containers, and cover general purposes. Additionally, the company proposes an offer for sale, intending to sell 0.54 crore existing shares. 

1. Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 400 crores. The company intends to utilize the proceeds from the fresh issue to prepay borrowings, fund capital expenditures for vehicles and containers, and cover general purposes. 
2. Offer for sale: Western Carriers India Limited is offering to sell 0.54 crore existing shares. The following are the details of the existing shareholders who are also the promoters selling the shares:

Western Carriers India Ltd IPO Offer Size 

The offer size of Western Carriers India Limited is INR 492.88 crores, consisting of a fresh issue of 2.33 crore shares worth INR 400 crores and an offer to sell 0.54 crore shares worth INR 92.88 crores. The company seeks funds to prepay borrowings, fund capital expenditures for vehicles and containers, and cover general purposes. 

Western Carriers India Ltd IPO Allotment Structure 

Western Carriers India Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

Read more about Western Carriers India Ltd IPO Allotment Status

How to apply for Western Carriers India IPO?

To apply for the Western Carriers India Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the Western Carriers India Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Western Carriers India Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

Read more Western Carriers India IPO Day 1 Subscription

How do you check Western Carriers India IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Western Carriers India Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Western Carriers India Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance. 

 Apart from Alice Blue, there are other ways to check the allotment status of the Western Carriers India Limited IPO:

● Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the Western Carriers India Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

● BSE NSE: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) National Stock Exchange (NSE). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Read more Western Carriers India IPO Day 2 Subscription

Western Carriers India Ltd IPO Offer Registrar

The registrar for the Western Carriers India Limited IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

Link Intime India Private Limited

C-101, 1st Floor, 247 Park

L.B.S. Marg, Vikhroli West

Mumbai-400 083

Maharashtra, India

Tel: +91 81 0811 4949

E-mail: [email protected]

Website: www.linkintime.co.in 

Read more Western Carriers India IPO Day 3 Subscription

Western Carriers India IPO – FAQs 

1. What is the allotment date of the Western Carriers India IPO? 

The allotment date of the Western Carriers India Limited IPO is September 19, 2024. 

2. What is the price band of the Western Carriers India IPO? 

The price band of the issue is INR 163-172 per share. 

3. What is the size of the Western Carriers India IPO? 

The offer size of Western Carriers India Limited is INR 492.88 crores, consisting of a fresh issue of 2.33 crore shares worth INR 400 crores and an offer to sell 0.54 crore shares worth INR 92.88 crores. The company seeks funds to prepay borrowings, fund capital expenditures for vehicles and containers, and cover general purposes. 

4. What is the listing date of the Western Carriers India IPO? 

The listing date of Western Carriers India Limited’s IPO is September 23, 2024.