Western Carriers (India) IPO: Review, Valuation, Date & GMP

Western Carriers (India) IPO-Complete Overview

Western Carriers (India) IPO a Mainboard IPO is a book-built issue of Rs.492.88 crore (28,655,813 Shares) by Western Carriers (India) Ltd. The company founded in March 2011 was established as a 4PL asset-light logistics company with a focus on rail. 

In Fiscal 2023, the company was the largest private, multi-modal, rail-focused, 4PL asset-light logistics company in India by container volume. Based on the volume of containers handled, its market shares in the domestic and export markets were 6% and 2%, respectively, in Fiscal 2023.  

The company serves a variety of industries, including metals, fast-moving consumer goods (FMCG), pharmaceuticals, chemicals, engineering, oil and gas, and retail. Among its clients are Tata Steel Limited (‘Tata Steel'), Hindalco Industries Limited (‘Hindalco'), Jindal Stainless Limited (‘JSL'), JSW Steel Coated Products Limited (‘JSW'), Bharat Aluminium Company Limited (‘BALCO’) and Vedanta Limited ('Vedanta'), Hindustan Unilever Limited ('HUL'), Hindustan Coca Cola Beverages Private Limited ('Coca Cola India'), Tata Consumer Products Limited (‘Tata Consumer’), Gujarat Tea Processors and Packers Limited ('Wagh Bakri'), CG Foods India Private Limited ('CG Foods'), Cipla Limited ('Cipla'), Materials Chemicals, and Oil and Gas Brahmaputra Cracker and Polymer Limited ('BCPL') Utilities and others Sheela Foam Limited ('Sleepwell') and DHL Logistics Private Limited, Haldia Petrochemicals Limited ('Haldia') and Gujarat Heavy Chemicals Limited ('GHCL'), Performance Intermediaries Private Limited ('MCPI') (formerly, MCC PTA India Corp. Private Limited, a subsidiary of Mitsubishi Chemical Corporation).

The company offers coastal cargo movement inside India, stevedoring services at Indian ports, and chartering services to foreign locations. Their area of expertise lies in integrating road and rail movements using an asset-light business model. For a top metals and resource group organization, the corporation oversees and maintains the supply chain for increasing imports, exports, and production levels.

This new IPO is to be launched on 13 September 2024, and the initial public offering of this upcoming IPO will end on 19 September 2024.

 

Western Carriers (India) IPO Overview

The Rs.492.88 crore Western Carriers (India) Ltd. IPO comprises a combination of a fresh Issue of 2.33 crore Shares amounting to Rs.400 crore and an Offer for Sale (OFS) of 0.54 crore Shares amounting to Rs.92.88 crore out of which 35% is allocated to retail investors, 50% to institutional investors and 15% to non-institutional investors. 

The IPO date is from 13 September to September 19, 2024. The IPO listing is on Tuesday, September 24, 2024, and it will be listed on the BSE and NSE. Western Carriers (India) IPO price band is between Rs.163 to Rs.172 for each Share.

If You want to apply for the IPO, Click Here to Open a Demat Account.

 

Company Financial

The company’s revenue grew by 3% and PAT increased by 12% between FYs ended 31 March 2024 and 31 March 2023.

Below is the synopsis of the company's financial data for the financial year that concluded on 31 March 2024.

• The company’s total assets are Rs.754.01 crore.

• The company’s total revenue is Rs.1,691.41 crore.

• The company’s PAT is Rs.80.35 crore.

• The company’s net worth is Rs.398.36 crore.

• The EBITDA of the company is Rs.151.82 crore.
  
  

(Amount in Crore)

 

Revenue Bifurcation

Below is the revenue breakdown for various activities.

(Amount in million)

 

Sector-wise Revenue Bifurcation

(Values in millions)

 Detailed Video:

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Partial return, either in advance or on schedule, of some outstanding loans obtained by the company

• Financing for the company's capital expenditure needs for the acquisition of:

• 40-foot specialty containers, 20-foot standard shipping containers

• commercial vehicles

• reach stackers

• Corporate Purposes.
  
  

Peers of Western Carriers (India) Ltd.

 

Note: The basic EPS of the peers is of the financial year ended 31 March 2024.

The peers' P/E Ratio is computed based on the closing market price of the Share as of 04 September 2024.

 

Evaluation

Western Carriers (India) share price is between Rs.163 to Rs.172 for each Share.

Evaluation of P/E Ratio

Considering the period of FY 2024, with an EPS of Rs.10.21 from the last year, the resulting P/E ratio is 16.85x.

Considering the weighted EPS of Rs.9.43 for the last three years, the P/E ratio is 18.24x.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 5.76x.

In simple words, the P/E ratio of Western Carriers (India) IPO (16.85x), compared with the industry’s average P/E of 5.76x, has an overvaluation (on a P/E ratio basis only). Hence the price of the Share seems aggressively priced for the investors when considered based on the average P/E ratio of the industry.

Note: The EPS and weighted EPS of the company are as of FY 2024 and the industry P/E Ratio is computed based on the closing market price of the Share as of 04 September 2024.

 

IPO's Strengths 

• Broad and integrated multi-modal end-to-end logistics solutions

• Scaled, asset-light business model with a successful track record of delivering growth and profitability

• Strong customer relationships with a diverse customer base

• Strategically positioned to capitalize on a rapidly expanding logistics market in India

• Experience in executing complex and customized projects and delivering customized end-to-end services.

 

IPO’s Weaknesses 

• Functions in the Indian logistics sector could be negatively impacted by certain elements influencing this sector's expansion. Its capacity to continuously use the logistical infrastructure is also essential to the operation of the firm. Any hiccups or flaws in the logistics infrastructure, such as those affecting container and freight traffic, could negatively impact the company's operations.

• Its business, financial situation, cash flows, and operational performance could all suffer from its incapacity to successfully market its products or any decline in the public's view of its brand.

• It occasionally faces claims for personal injury, theft, cargo loss or damage, and other operational hazards, and its insurance coverage might not be sufficient to cover all of these claims.

• It runs the danger of experiencing an abrupt spike in fuel prices, which might harm profitability.

• In the last FYs, its financing and investing activities resulted in negative cash flows.
  
  

Western Carriers (India) IPO GMP Today

Western Carriers (India) Limited IPO GMP today is Rs.0 as of 10 September 2024.

Western Carriers (India) IPO Timetable (Tentative)

The IPO open date is from September 13 to September 19, 2024, with IPO allotment on September 20, 2024, refund initiation on September 23, 2024, and listing on September 24, 2024.

 

Western Carriers (India) IPO Details 

The IPO with a face value of Rs.5 per Share is set to start on September 13, 2024, close on September 19, 2024, and offers a total issue size of 28,655,813 Shares between Rs.163 to Rs.172 per Share with a Lot size of 87 Shares and will be listed at BSE and NSE.

Western Carriers (India) IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (87 Shares) amounting to Rs.14,964 and 13 Lots (1131 Shares) amounting to Rs.1,94,532 respectively, while for HNI investors, the minimum Lot is 14 (1,218 Shares) amounting to Rs.2,09,496.

Western Carriers (India) IPO Reservation

Promoters and Management of Western Carriers (India) Ltd. 

• Rajendra Sethia

• Kanishka Sethia.
  
  

Western Carriers (India) IPO Lead Managers

• Jm Financial Limited

• Kotak Mahindra Capital Company Limited
  
  

Dividend Policy

The company has paid a total of Rs.98.37 million in FY 2023 corresponding to 39.35 million Shares at Rs.2.50 per equity Share.

 

Conclusion

The company has experienced negative cash flow in financing and investing activities in the last few fiscal years. To fulfill its objectives, the company is currently conducting an IPO for the public.

We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable information about the company's, insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Disclaimer: 

The content is purely for educational and information purposes only. We do NOT encourage/advise/suggest our active readers to be involved in any kind of buying or selling securities activities. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in trading.  

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