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Western Carriers (India), a prominent player in the multi-modal logistics sector, experienced an undersubscribed Initial Public Offering (IPO). The company's IPO, which opened for bidding on Friday, 13 September 2024, received bids for 1.64 crore shares against the 2.08 crore shares offered, resulting in a subscription rate of 0.79 times. The issue, which was priced between Rs 163 and Rs 172 per share, is set to close on Wednesday, 18 September 2024.
The IPO consisted of a fresh issue of equity shares totaling Rs 400 crore and an offer for sale (OFS) of 54,00,000 equity shares. Rajendra Sethia, the company's promoter, is selling his entire stake through the OFS. Proceeds from the fresh issue are earmarked for various purposes, including prepayment or scheduled repayment of outstanding borrowings (Rs 163.50 crore), funding of capital expenditure requirements for the purchase of commercial vehicles, containers, and reach stackers (Rs 151.71 crore).
Western Carriers (India) provides a comprehensive range of logistics solutions, integrating road, rail, water, and air transportation along with a suite of value-added services. The company's rail-focused logistics business, which began in 1972, was acquired in 2012. Currently, it is the largest private, multi-modal, rail-focused 4PL asset-light logistics company in India based on container volume handled in fiscal year 2023.
Key services offered by Western Carriers include 3- and 4-PL supply chain management, value-added services (VAS), warehousing, stock management, customs clearance and stevedoring, project logistics, rail and road transport, and courier, air, and water freight. The company provides end-to-end solutions across all stages of the logistics value chain.
In the twelve months ending on 31 March 2024, Western Carriers reported a consolidated net profit of Rs 80.35 crore and sales of Rs 1,685.77 crore. Ahead of the IPO, Bajaj Housing Finance raised Rs 147.86 crore from anchor investors on Thursday, 12 September 2024, by allocating 85.96 lakh shares at Rs 172 each to 15 investors.