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    Western Carriers IPO opens for subscription. Should you bid for this Rs 492 cr issue?

    Synopsis

    Western Carriers IPO Day 1: Western Carriers' IPO opens for subscription, featuring a fresh equity sale of Rs 400 crore and an offer for sale by promoter Rajendra Sethia. The price band is set at Rs 163-172 per share. Analysts recommend it for high-risk investors due to financial challenges. Proceeds will repay borrowings and fund capital expenditure.

    Western Carriers IPO opens for subscription today. Should you bid for this Rs 492 cr issue?ETMarkets.com
    The initial public offer (IPO) of Western Carriers opened for subscription on Friday and will be available till September 18.

    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


    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 had no GMP ahead of issue opening.

    Growfast

      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.

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      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.

      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.

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      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.


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      (You can now subscribe to our ETMarkets WhatsApp channel)

      (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

      Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

      Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

      ...more
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