Logistics Firm Western Carriers' IPO To Open On Sep 13

Logistics company Western Carriers (India) Ltd is looking to raise Rs 500 crore through its initial share sale, which is set to open for public subscription on September 13.

The Kolkata-based company's initial public offering (IPO) will conclude on September 18 and the bidding for anchor investors will open for a day on September 12, according to the Red Herring Prospectus (RHP).

Now, the IPO comprises a fresh issue of equity shares aggregating up to Rs 400 crore and an Offer For Sale (OFS) of up to 54 lakh equity shares by promoter Rajendra Sethia, as per the RHP.

According to merchant banking sources, the company's issue size has been pegged at Rs 500 crore.

In its draft papers filed in June, Western Carriers' proposed IPO involving a fresh issue of equity shares worth Rs 500 crore and an OFS component of 93.29 lakh equity shares.

Proceeds from the fresh issue to the tune of Rs 163.5 crore will be used for debt payment, Rs 152 crore for funding capital expenditure requirements towards purchase of commercial vehicles, shipping containers; and reach stackers, and the remaining funds towards general corporate purposes.

Western Carriers is India's leading private, multi-modal, rail-focused, asset-light logistics company, with a customer base of 1,647 across varied sectors such as metals and mining, FMCG, pharmaceutical, building materials, chemicals, oil and gas, and utilities as of March 2024.

Some of its key customers are Tata Steel, Hindalco Industries, Vedanta, BALCO, HUL, Coca-Cola India, Tata Consumer Products, Wagh Bakri, Cipla, Haldia Petrochemicals, MCPI, Gujarat Heavy Chemicals, BCPL, and DHL, among others.

As of fiscal 2024, the company's revenue from operations was Rs 1,685 crore, with a profit after tax (PAT) of Rs 80 crore.

JM Financial and Kotak Mahindra Capital Company are the book-running lead managers to the issue. The equity shares are proposed to be listed on the BSE and NSE.