Western Carriers (India) Limited

About Western Carriers (India) Limited  Incorporated in 2011, Western Carriers (India) Limited is the largest private, multimodal, rail-focused, 4PL asset-light logistics company in India in terms of container volumes in FY23. It holds a domestic market share of 6% as of FY23.  It offers services at different stages of a supply chain, including production, packaging and transportation, export haulage and documentation, departure, arrival and unloading, inland haulage and customs clearance, and multimode transport.  It operates on a scalable, asset-light business model, which enables it to provide differentiated 3PL and 4PL solutions. It operates ~50 branches as of 31 March 2024, and has served more than ~1,600 customers.  It serves customers in varied sectors such as metals, fast moving consumer goods (FMCG), pharmaceuticals, chemicals, engineering, oil and gas, and retail. Some of its customers include Tata Steel, Hindalco, Vedanta, HUL, Coca Cola India, Cipla, Sleepwell, and DHL.  It further plans to purchase commercial vehicles, 40-feet specialized containers and 20-feet normal shipping containers as well as handling equipment such as reach stackers, which may lead to improved performance, reliability and safety.  Between FY22 and FY24, it saw a CAGR rise of 4% in its revenue from operations and 9% in its profit. Moreover, the Indian logistics industry is expected to grow at a CAGR of ~10% to reach ₹35.3 trillion by FY29, which could benefit the company.  And now, Western Carriers (India) Limited is coming out with its initial public offer (IPO). The total IPO issue size is ₹492 crore, comprising fresh issue, aggregating to ₹400 crore, as well as an offer for sale, aggregating to ₹92 crore. The money raised from the fresh issue will be utilised to prepay borrowings, purchase equipment and for general corporate purposes. Its shares will be listed on the NSE and BSE.  Here are key details about the Western Carriers (India) IPO:     Company Name  Western Carriers (India) Limited   Company Type  Private    Company Established On  2011   Western Carriers (India) Limited IPO Opening Date  13th September 2024    Western Carriers (India) Limited IPO Closing Date  19th September 2024   Western Carriers (India) Limited IPO Allotment Status  20th September 2024    Credit of Shares to the Demat Account  23rd September 2024   Western Carriers (India) Limited IPO Listing Date  24th September 2024    Western Carriers (India) Limited IPO Face Value  ₹ 5 per share   Western Carriers (India) Limited IPO Lot Size  87 shares    Western Carriers (India) Limited IPO Issue Size  Approx ₹492 crore   Western Carriers (India) Limited IPO to be Listed on  BSE, NSE    Western Carriers (India) Limited IPO Price band  ₹ 163 – ₹ 172 per share        Financial snapshot     Particulars  FY22  FY23  FY24    Revenue  ₹ 1,470 crore  ₹ 1,633 crore  ₹ 1,685 crore    Net Profit  ₹ 61.1 crore  ₹ 71.5 crore  ₹ 80.3 crore              Here’s a quick look at Western Carriers (India) Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)  Strengths and opportunities   Provides integrated, customized, and end-to-end services across the logistics value chain, and such customized services have inherent entry barriers.  Has a comprehensive logistics infrastructure including four zonal offices, 50+ branch offices, 16 warehouses, 400+ GPS-enabled heavy commercial vehicles, 100+ pieces of heavy equipment and 500 shipping containers, as of 31 March 2024.  Diverse customer base with long-standing relationships as 80% of its revenues in FY23 were generated from customers of more than 3 years.  Strategically positioned as the largest player in the container rail multi-modal (rail-road) market, which is expected to grow at a CAGR of ~24% between FY24 and FY29.  Operates an asset light business model as the majority of its infrastructure is leased through network partners, giving it greater flexibility.  Track record of growth with consistent EBITDA margins of 7%, 7%, and 9% in FY22, FY23, and FY24, respectively.   Risks and threats   Depends on certain key customers as its largest customer accounted for 16% of its revenue from operations as of FY24.  Its customer contracts can be terminated by its customers without cause on short notice and without compensation.  Operates in the Indian logistics industry and may be adversely affected by certain factors affecting the growth of this industry.  Subject to various laws and regulations and exposed to the risk of significant liability if it fails to comply.  Subject to operational risks such as accidents, and the breakdown of its assets accounting for ₹30 crore as of FY24.            Western Carriers (India) Limited IPO details  | Western Carriers (India) Limited IPO date  According to the offer document filed by the company with the SEBI, the Western Carriers (India) IPO’s opening date – in other words, the Western Carriers (India) IPO launch date – will be 13th September 2024. The Western Carriers (India) IPO closing date is 19th September 2024. After this, investors will be updated about the allotment status on 20th September 2024.  Investors who have been allotted shares can expect them to be credited to their demat account on 23rd September 2024. The Western Carriers (India) IPO listing date is 24th September 2024. The listing date is the date on which a company's shares are listed on the bourses—NSE and BSE.  | Western Carriers (India) Limited IPO Price Band  The IPO is a fresh issue and an offer for sale. The Western Carriers (India) IPO price band has been set between ₹163 and ₹172 per share. Interested investors can choose a price within this band to apply for the IPO.  The Western Carriers (India) IPO listing price will be determined on 24th September 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.  | Western Carriers (India) Limited IPO Lot size  The Western Carriers (India) IPO details have been declared. The Western Carriers (India) IPO lot size is set at 87 shares, and an investor can apply for a minimum of 1 lot. Meanwhile, the Western Carriers (India) IPO issue size is approx ₹ 492crore.           How to pre-apply for the Western Carriers (India) Limited IPO?  You can pre-apply for the Western Carriers (India) Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription.  Follow these steps to pre-apply for the IPO:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Western Carriers (India) Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Pre-Apply’  Accept the mandate on your UPI app            How to apply for the Western Carriers (India) Limited IPO?  If you are interested in this investment opportunity but unsure how to apply for the Western Carriers (India) Limited IPO, here we are listing out the steps for you.  When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Western Carriers (India) Limited IPO on Upstox:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Western Carriers (India) Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Apply’  Accept the mandate on your UPI app            How to check the Western Carriers (India) Limited IPO allotment status?  When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes.  Here’s a step-by-step guide on how to check the Western Carriers (India) Limited IPO allotment status:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover page, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, you will find the ‘View all’ option  Once you click on ‘View all’, you will be directed to the ‘IPO’ tab  In the ‘IPO’ tab, click on ‘My applications’  In ‘My applications’, under the History section, your Western Carriers (India) Limited IPO allotment status will be mentioned    Check Allotment Status           Open a demat account with Upstox to apply for the Western Carriers (India) Limited IPO  To apply for the Western Carriers (India) Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.  Here is a step-by-step guide on how to open a demat account with Upstox:   Click here to visit the demat account opening page on the Upstox website.  Enter your phone number and other essential details to begin opening a demat account.  Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed.  Complete the e-verification using the OTP sent to your registered mobile number.   This is all it takes to open a demat account with Upstox. Easy and quick, right?   Open Demat Account           Upstox – trading app to apply for the Western Carriers (India) Limited IPO  Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.  You can apply for the Western Carriers (India) Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.  In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.