The IPO received a healthy response from investors as the issue was subscribed nearly 31 times, driven by heavy bidding from non-institutional investors.
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.
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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.Also read: Northern Arc Capital shares list at 33.5% premium over IPO price
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. In FY24, 80% of the company’s revenues originated from customers who had been transacting with the company for over 3 years and the customer retention rate for the top 10 customers was 100%.
JM Financial and Kotak Mahindra Capital Company acted as the book-running lead managers for the IPO.