
Shares of Western Carriers (India) made a muted debut at the bourses on Tuesday as the logistics solutions provider commenced its trading at Rs 170 on BSE, a discount of 1.16 per cent over its issue price of Rs 172. Similarly, the stock was listed on a flat note at Rs 171 on NSE, just a rupee below the given issue price.
The listing of Western Carriers (India) has been muted than the expectations. Ahead of its listing, the grey market premium (GMP) for the shares of Western Carriers (India) dropped to Rs 10-13 per shares, suggesting a listing pop of merely 7-8 per cent for the investors.
The five-day IPO of Western Carriers India was open for bidding between September 13-19. The company had offered its shares in the fixed price band of Rs 163-172 per share with a lot size of 87 shares. It raised a total of Rs 492.88 crore from its IPO, which included a fresh share sale of up to Rs 400 crore and an offer-for-sale (OFS) of up to 54 lakh shares.
Western Carriers has generated decent market demand, with its issue subscribed nearly 31 times and set to list on Tuesday, expecting a premium of only 6 per cent above the upper band price, said Akriti Mehrotra, Research Analyst at Stoxbox. As a dominant player in India’s logistics sector, She recommended investors to hold their positions for the medium to long term.
The issue was overall subscribed a total of 30.57 times. The quota for qualified institutional bidders (QIBs) was booked 27.99 times. The quota for non-institutional investors was subscribed 44.71 times. The portions reserved for retail investors saw bidding for 25.95 times during the five-day bidding process.
Incorporated in 2011, Western Carriers India is a multimodal, rail-focused, 4PL asset-light logistics company. The company offers fully customizable, multi-modal logistics solutions encompassing road, rail, water, and air transportation and a tailored range of value-added services to sectors such as metals, FMCG, pharmaceuticals, chemicals, engineering, oil and gas and retail.
JM Financial and Kotak Mahindra Capital Company were the book running lead managers of the Western Carriers India IPO, while Link Intime India was the registrar for the issue.