Western Carriers IPO Debuts With Discount On Dalal Street
During its subscription phase, retail category closed with 26.92 times subscription, while qualified institutions closes with 28.81 times subscription
The initial public offering (IPO) of Western Carriers listed with a discount of around half a per cent on the National Stock Exchange (NSE) at Rs 171.
The Rs 492.88 crore IPO consisted of fresh issues worth Rs 400 crore and offer-for-sale (OFS) worth Rs 92.88 crore with the price band fixed at Rs 163 to 172 per equity share.
During its subscription phase, the subscription stood at 31.69 times. Retail category closed with 26.92 times subscription, while qualified institutions closed with 28.81 times subscription.
“The strategic focus on technology and value-added services, combined with the projected growth in the rail-road multimodal sector which is forecasted to reach Rs. 4,667 billion by FY29 supports a positive outlook for the company. Despite the initial discounted listing, we remain optimistic about Western Carriers and recommend investors to ‘hold’ the shares for a medium to long-term perspective,” said Akriti Mehrotra, Research Analyst, Stoxbox.
The net proceeds of Rs 400 crore from the fresh issue will be utilised towards funding capital expenditure requirements for purchase of commercial vehicles, reach stackers, containers and general corporate purposes.
Moreover, the firm will also get benefits on listing in the public market which will enhance the brand’s visibility and provide liquidity to the shareholders.
Financially, Western Carriers’ revenue increased from Rs 14,708.8 million in FY22 to Rs 16,857.7 million in FY24.
Additionally, earnings before interest, tax, depreciation and amortisation (EBITDA) rose from Rs 1,088.9 million to Rs 1,518.2 million, resulting in an improvement in the EBITDA margin from 7.4 per cent to 9.0 per cent.
With total equity reaching Rs 3,983.6 million and a net debt to EBITDA ratio of 1.52 times in FY24, the company is well-positioned for sustained growth.
The profit after tax (PAT) increased to Rs 80.35 crore in FY 24 against Rs 71.57 crore in FY 23.
Overall, the revenue increased by 3 per cent, whereas PAT climbed 12 per cent between FY 23 and FY 24.
Western Carriers specialises in providing comprehensive multi-modal solutions across rail, road, sea, and air transport. Leveraging an asset-light model, it integrates services such as warehousing, customs clearance, and cargo handling, catering to a diverse client base of 1,647.
