Western Carriers IPO Set to Raise ₹492.88 Crores
India’s largest private, multimodal, rail-focused, 4PL asset-light logistics provider operates on a scalable asset-light model, which allows them to optimize costs, ensure flexibility, and adapt to varying client needs without the overhead of owning large assets
BILKULONLINE
Ahmedabad, Sep 12: Western Carriers (India) Limited, the largest private, multimodal, rail-focused 4PL (Fourth-Party Logistics) asset-light logistics provider in India, is set to launch its Initial Public Offering (IPO) to raise ₹492.88 crores.
The IPO will open on September 13, 2024, and close on September 18, 2024. The company has fixed its price band at ₹163 to ₹172 per equity share, with a market lot of 87 shares.
IPO Structure and Details
Western Carriers’ IPO consists of a fresh issue of ₹400 crores and an offer for sale of up to 5,400,000 equity shares with a face value of ₹5 each. The retail quota is 35%, QIB (Qualified Institutional Buyers) at 50%, and HNI (High Net-worth Individuals) at 15%. The IPO is a Book Built Issue, and the company’s shares will list on both the BSE and NSE on September 23, 2024. The allotment date is scheduled for September 19, 2024.
Business Overview
Western Carriers operates over 50 branches across India and runs a scalable, asset-light model that has proven to be both efficient and flexible. The company provides an array of services, including:
Single-window logistics solutions
Multimodal transportation (rail and road)
Cargo handling
Customs house agency
Ocean and air freight
Warehousing
With an emphasis on multimodal transportation and a strong rail focus, the company has established itself as a trusted partner for logistics solutions across various industries. Its customer-centric approach, along with a commitment to on-time delivery, has made it a preferred choice for clients.
Financial Performance
In 2024, Western Carriers reported a revenue of ₹1,691.41 crores, a slight increase from ₹1,637.84 crores in 2023. The company’s profit rose to ₹80.35 crores in 2024 from ₹71.57 crores in 2023, reflecting steady financial growth despite challenging market conditions. These financials indicate a robust and resilient business model, making the IPO a strong long-term investment opportunity.
As one company executive noted, “Our focus on multimodal logistics, particularly rail, coupled with an asset-light model, has allowed us to scale efficiently and meet our clients’ diverse needs. The IPO will further strengthen our ability to invest in expanding our capabilities.”
Objects of the Issue
The funds raised through the IPO will be allocated toward:
Prepayment or scheduled repayment of certain outstanding borrowings.
Funding capital expenditures, specifically for the purchase of:
Commercial vehicles
40 feet specialized containers and 20 feet normal shipping containers
Reach stackers
These investments will help the company expand its operational capacity and improve service efficiency.
Promoters and Management
Western Carriers is promoted by Rajendra Sethia and Kanishka Sethia, both of whom have played pivotal roles in steering the company’s growth. Their leadership has ensured that Western Carriers maintains a strong foothold in the Indian logistics market while continuing to innovate and scale.
IPO Lead Managers
The IPO is managed by prominent merchant bankers, JM Financial Limited and Kotak Mahindra Capital Company Limited, both of which have a strong track record of successfully managing public offerings in India.
With a strong financial track record, a unique asset-light business model, and an expanding service portfolio, Western Carriers is well-positioned to capitalize on the growing demand for efficient logistics solutions in India. The upcoming IPO presents a promising opportunity for investors looking for long-term growth in the logistics sector. The company’s commitment to investing in new assets and infrastructure underscores its ambition to remain a market leader in the multimodal logistics space.
A market analyst commented, “Western Carriers’ focused approach on multimodal logistics, particularly in rail, sets it apart from competitors. The company’s consistent growth, coupled with the IPO proceeds being directed toward key capital expenditures, positions it for further expansion.”
Rajendra Sethia, Chairman & MD, Kanishka Sethia, the Whole-time Director and the Chief Executive Officer, Dinesh Kumar Mantri, CFO of WEstern Carriers were in Ahmedabad to interact with the media on Wednesday.
(Disclaimer: Investors must thoroughly study the company profile and details before investing)
