1 day Ago
The initial public offering ( IPO ) of Western Carriers was subscribed by 17.5 times on the last day of the bidding process on Wednesday attracting a strong demand from retail and non institutional investors (NIIs). The portion reserved for the retail investors as well as the NIIs received a solid response and was booked nearly 21.
7 times and 30.31times, respectively. The quota reserved for qualified institutional buyers ( QIBs ) was booked by just 24%.
In all, 14.25 lakh share bids were received from QIBs around this time against 58,98,528 shares available for booking. The IPO comprises a fresh equity sale of Rs 400 crore and an offer for sale (OFS) of up to 54 lakh shares by promoter selling shareholder Rajendra Sethia.
Western Carriers IPO price band Stock Trading Market 101: An Insight into Trendlines and Momentum By - Rohit Srivastava, Founder View Program Stock Trading Markets 102: Mastering Sentiment Indicators for Swing and Positional Trading By - Rohit Srivastava, Founder View Program Stock Trading Market 103: Mastering Trends with RMI and Techno-Funda Insights By - Rohit Srivastava, Founder View Program Stock Trading Market 104: Options Trading: Kickstart Your F&O Adventure By - Saketh R, Founder- QuickAlpha, Full Time Options Trader View Program Stock Trading ROC Made Easy: Master Course for ROC Stock Indicator By - Souradeep Dey, Equity and Commodity Trader, Trainer View Program Stock Trading RSI Made Easy: RSI Trading Course By - Souradeep Dey, Equity and Commodity Trader, Trainer View Program Stock Trading Technical Analysis for Everyone - Technical Analysis Course By - Abhijit Paul, Technical Research Head, Fund Manager- ICICI Securities View Program Stock Trading Introduction to Technical Analysis & Candlestick Theory By - Dinesh Nagpal, Full Time Trader, Ichimoku & Trading Psychology Expert View Program Stock Trading Options Trading Course For Beginners By - Chetan Panchamia, Options Trader View Program Stock Trading Options Scalping Made Easy By - Sivakumar Jayachandran, Ace Scalper View Program Stock Trading Futures Trading Made Easy: Future & Options Trading Course By - Anirudh Saraf, Founder- Saraf A & Associates, Chartered Accountant View Program Stock Trading Stock Markets Made Easy By - elearnmarkets, Financial Education by StockEdge View Program Stock Trading Renko Chart Patterns Made Easy By - Kaushik Akiwatkar, Derivative Trader and Investor View Program Stock Trading Options Trading Made Easy: Options Trading Course By - Anirudh Saraf, Founder- Saraf A & Associates, Chartered Accountant View Program Stock Trading Stock Investing Made Easy: Beginner's Stock Market Investment Course By - elearnmarkets, Financial Education by StockEdge View Program Stock Trading Macroeconomics Made Easy: Online Certification Course By - Anirudh Saraf, Founder- Saraf A & Associates, Chartered Accountant View Program Stock Trading Stock Valuation Made Easy By - Rounak Gouti, Investment commentary writer View Program Stock Trading Candlesticks Made Easy: Candlestick Pattern Course By - elearnmarkets, Financial Education by StockEdge View Program Stock Trading Technical Analysis Made Easy: Online Certification Course By - Souradeep Dey, Equity and Commodity Trader, Trainer View Program Stock Trading Technical Trading Made Easy: Online Certification Course By - Souradeep Dey, Equity and Commodity Trader, Trainer View Program Stock Trading Commodity Markets Made Easy: Commodity Trading Course By - elearnmarkets, Financial Education by StockEdge View Program Stock Trading Derivative Analytics Made Easy By - Vivek Bajaj, Co Founder- Stockedge and Elearnmarkets View Program Stock Trading A2Z of Stock Market for Beginners: Stock Market Course For Beginners By - elearnmarkets, Financial Education by StockEdge View Program Stock Trading Dow Theory Made Easy By - Vishal Mehta, Independent Systematic Trader View Program Stock Trading Cryptocurrency Made Easy: Cryptocurrency Course By - elearnmarkets, Financial Education by StockEdge View Program Stock Trading A2Z of Stock Trading - Online Stock Trading Course By - elearnmarkets, Financial Education by StockEdge View Program Stock Trading Algo Trading Made Easy By - Vivek Gadodia, Partner at Dravyaniti Consulting and RBT Algo Systems View Program The company has fixed a price band of Rs 163-172 per share, where investors can bid for 87 shares in one lot. Western Carriers IPO GMP In the unlisted market, the company's shares were commanding a grey market premium of Rs 51 per equity share, down from Rs 58 on Tuesday. This indicates a 29% premium over the upper band of the issue price.
Western Carriers IPO review Analysts advised only high risk investors to subscribe to the issue as the company faces a long payment cycle and is exposed to several operational risks. "Given the company's financial challenges and limited market interest, a "may apply" rating is recommended for long-term investors with a high-risk tolerance," said Swastika Investmart. “At higher price band, WCIL is demanding a EV/Sales multiple of 1x, which is at discount to peer average of 2.
4x. Thus, the issue is attractively priced. Considering its market position among the private players and improving outlook of rail logistics post partial/full commencement of DFCs, we believe, it is well positioned to benefit from the expansion in the multi-modal freight transportation,” said analysts at Choice Broking Other details Proceeds from the fresh issue will be used to repay borrowings, fund capital expenditure towards the purchase of commercial vehicles, containers, and reach stackers, with the remainder allocated for general corporate purposes.
Western Carriers has a pan-India presence through over 50 branch offices and four zonal offices across 23 states in India. The company’s 16 warehouses are located across 12 states and it operates at over 55 major public rake handling points spread across India. Also read: Bajaj Housing Finance shares tumble 11% in 2 days.
Should you buy, sell or hold? Its pan-India presence allows it to provide both first-mile and last-mile connectivity to its customers who have operations across India, including in remote areas. As of March 31, 2024, the company had a customer base of 1,647 across industries like metals, FMCG, pharmaceuticals, chemicals, and oil & gas. Key clients include Tata Steel , Hindalco Industries , HUL , and DHL.
The company's consolidated revenue from operations increased 4% to Rs 1686 crore for FY24. Profit after tax rose 12% to Rs 80.3 in the same period.
For Fiscal 2024, the company reported revenue of Rs 1,685 crore and a PAT of Rs 80 crore. JM Financial and Kotak Mahindra Capital Company are the book-running lead managers for the IPO. The equity shares will be listed on BSE and NSE.
( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel ).
