Western Carriers (India) Limited’s IPO is scheduled to launch on September 13, 2024, with subscriptions closing on September 19, 2024. Incorporated in March 2011, the company is a multi-modal, rail-focused, 4PL asset-light logistics provider offering fully customizable logistics solutions across road, rail, water, and air transportation.
They serve sectors like metals, FMCG, pharmaceuticals, chemicals, engineering, and oil and gas, with clients including Tata Steel, Hindalco, JSW, Vedanta, Hindustan Unilever, and Cipla, among others. They offer chartering services to overseas destinations, stevedoring at Indian ports, and coastal cargo movement within India. Specializing in combining rail with road logistics through an asset-light model, they efficiently manage supply chains for increased imports, exports, and production levels for leading metals and resource groups.
Issue size
| Funds to be Raised in the IPO | Amount |
|---|---|
| Overall | ₹492.88 crores |
| Fresh Issue | ₹400.00 crores |
| Offer for sale | ₹92.88 crores |
The utilisation of proceeds:
| Purpose | INR crores (%) |
|---|---|
| Repayment of outstanding borrowings | 163.50 (40.88%) |
| Capital expenditure for vehicles and containers | 151.71 (37.93) |
| General Corporate Purposes | 84.76 (21.19%) |
| Total | 400.00 (100.00%) |
Financial Snapshot
| Financial Year Ended | March 2022 | March 2023 | March 2024 |
|---|---|---|---|
| Total Assets | 490.33 | 604.14 | 754.01 |
| Revenue | 1475.79 | 1637.84 | 1691.41 |
| Profit After Tax | 61.13 | 71.57 | 80.35 |
All figures are in ₹ Crores.
Strengths
-
Expertise in delivering customized, end-to-end logistics solutions with a focus on efficiency and cost optimization, supported by advanced technology and industry knowledge.
-
Comprehensive multi-modal logistics solutions that integrate various modes of transportation, offering seamless connectivity, reduced transit time, and lower costs for B2B clients.
-
Strong customer relationships across diverse industries, with a significant portion of revenue derived from long-term clients, demonstrating trust and reliability in service delivery.
-
Asset-light and scalable business model, enabling flexibility and control over operations, supported by the company’s deep industry experience and successful track record in the logistics sector.
-
Strategic positioning in the fast-growing Indian logistics market, with a focus on rail-based multi-modal logistics, capitalizing on favourable industry trends and inherent entry barriers.
Risk factors
-
Customer Concentration Risk: The 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.
-
Industry and Infrastructure Risks: The company’s logistics operations depend on external infrastructure like roads and ports. Any disruptions could harm its business operations.
-
High Working Capital Requirements: The business needs substantial working capital. Delays in customer payments or tighter payment terms from suppliers could strain cash flows.
-
Unsecured Loans Recall Risk: The company has unsecured loans that can be recalled at any time. If recalled, the company might not have enough funds to repay, affecting financial stability.
-
Technological Vulnerability: The company relies heavily on technology. Any system disruptions or security breaches could lead to financial losses and damage its reputation.
IPO Schedule
| Issue Period | 13 September to 19 September 2024 |
|---|---|
| Price band | ₹163 - 172 |
| Minimum Bid quantity | 87 shares |
| UPI Mandate Deadline | 5 PM, 18 September 2024 |
| Allotment Finalization | 20 September 2024 |
| Refund Initiation | 21 September 2024 |
| Share Credit | 21 September 2024 |
| Listing Date | 24 September 2024 |
| Mandate end date | 04 October 2024 |
| Lock-In End Date for Anchor Investors (50%) | 20 October 2024 |
| Lock-In End Date for Anchor Investors (Remaining) | 19 December 2024 |
Note:
-
The above schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion.
-
The allotment status will be available by September 20, 2024, on the Registrar’s website and the NSE website.