Western Carriers (India) Limited IPO is a new offering for up to 500 crore with an offer for sale worth 93.29 lakh. The price range, lot size, and other data are still unknown. It will be listed on both the BSE and the NSE.
Western Carriers (India) is the largest private, multi-modal, rail-focused, 4PL asset-light logistics company in India in terms of container volumes in Fiscal 2022. With a strong presence in both the domestic and EXIM (Export-Import) markets, the company has achieved market shares of 7% and 3%, respectively, based on container volumes handled in the same fiscal year.
Western Carriers (India) has five decades of experience in the logistics industry, with a rich legacy and vast knowledge
in road, rail, sea, and river multi-modal transportation. Rajendra Sethia, the company’s Promoter, has been involved in the logistics industry since 1972, when he founded a rail-focused logistics firm. Western Carriers (India) purchased this business in 2013, cementing its position as an industry leader.
Western Carriers (India) is able to provide new and differentiated 3PL (third-party logistics) and 4PL (fourth-party logistics) solutions by operating on a scalable and asset-light business model. The company specializes in addressing supply chain complexity by providing tailored, one-stop, single-window, end-to-end, and integrated logistics solutions. These solutions include a variety of value-added services, delivering a consistent experience for their clients.
Western Carriers (India) Limited IPO Objectives
The company proposes to use the net proceeds from the issue towards:
- Prepayment or scheduled payback of a portion of the company’s outstanding borrowings
- Funding of the company’s capital expenditure requirements for the procurement of (i) commercial vehicles; (ii) 40-foot specialized containers and 20-foot standard shipping containers; and (iii) reach stackers
- General corporate purposes.
Western Carriers (India) Limited Company Financials
| Particulars | As of and for the 9-month period ended December 31, 2022 | As of and for Fiscal 2022 | As of and for Fiscal 2021 |
|---|---|---|---|
| Revenue from Operations | 12,069.04 | 14,708.75 | 11,101.12 |
| EBITDA | 550.94 | 611.29 | 445.28 |
| EBITDA Margin | 7.94 | 7.40 | 7.62 |
| Profit After Tax (PAT) | 550.94 | 611.29 | 445.28 |
| Debt to Equity Ratio | 0.63 | 0.58 | 0.69 |
Highlights of Western Carriers (India) Ltd
- The company has a proven track record of year-over-year revenue, EBITDA, and profit growth, with revenue from operations increasing to 14,708.75 million in Fiscal 2022 from 10,672.89 million in Fiscal 2020, reflecting a 17.39% CAGR.
- EBITDA climbed to 1,088.87 million in Fiscal 2022 from 794.21 million in Fiscal 2020, reflecting a CAGR of 17.09%, while profit for the year increased to 611.29 million in Fiscal 2022 from 358.58 million in Fiscal 2020, representing a CAGR of 30.57%.
- As of December 31, 2022, the corporation leased four zonal offices, over 50 branch offices, and 15 warehouses. Western Carriers had over 400 GPS-enabled large commercial trucks, over 100 pieces of heavy equipment, and over 400 shipping containers at the time.
Know before investing
Strengths
- The company’s expertise in providing end-to-end logistics and bespoke solutions to customers provides it with a significant competitive advantage.
- Given their execution capabilities and ability to provide one-stop/single-window, end-to-end and integrated customized logistics solutions in a market with inherent entry barriers, Western Carriers are strategically positioned to benefit from certain favorable trends and initiatives in the Indian logistics industry.
Risks
- Western Carriers may be unable to sustain the pace of its past growth in future financial periods. Further, its business and the results of operations may be adversely affected if it is unable to successfully implement our business plans and growth strategies.
- Western Carriers may be unable to service its debt obligations in a timely manner or comply with various financial and other covenants of its financing agreements.
Western Carriers (India) Limited IPO FAQs:
Q1. What is Western Carriers (India) Limited’s IPO?
Ans. The Western Carriers (India) Ltd. IPO is a fresh issue comprising shares aggregating up to ₹ 500 crore and has an offer for sale of 93.29 lakh equity shares. The issue price is yet to be announced.
Q2. When will Western Carriers (India) Limited’s IPO be allotted?
Ans. Yet to be announced.
Q3. When will Western Carriers (India) Limited’s IPO open for subscription?
Ans. Yet to be announced.
Q4. What minimum lot size can retail investors subscribe to?
Ans. Yet to be announced.
Q5. When will Western Carriers (India) Limited list on exchanges?
Ans. Yet to be announced.
Q6. What would be the listing gains on the Western Carriers (India) Limited IPO?
Ans. Listing gains cannot be ascertained before listing the IPO on the stock exchange, which is yet to be announced, for Western Carriers (India) Ltd.
Q7. I have finished the application process for the Western Carriers (India) Limited IPO, but the funds still need to be debited. What is the reason?
Ans. The bank will only block the initial amount in your account. Under the new system, the money isn’t debited until the stocks are allotted to you.
Q8. How do I approve the UPI mandate request for Western Carriers (India) Limited’s IPO?
Ans. You must complete the payment process by logging in to your UPI handle and approving the payment mandate.
Q9. Can I submit more than one application for the public issue of Western Carriers (India) Limited using one PAN?
Ans. You can submit only one application using your PAN card.
