The IPO of Western Carriers India Limited opened for public bidding on September 13, 2024, and will remain available until September 19, 2024. Western Carriers, a significant player in India’s logistics sector, has set the price band for its IPO between ₹163 and ₹172 per equity share.
The company aims to raise ₹492.88 crore through a combination of fresh share issuance and an Offer for Sale (OFS). Investors have shown strong interest in the IPO, with its subscription status reflecting a positive reception.
On the first day of bidding, the IPO witnessed an enthusiastic response, and the momentum has only grown stronger since then. The public issue is set to list on both the BSE and NSE, which has further heightened interest from retail and institutional investors alike.
By the third day of bidding, the book build issue was subscribed 8.37 times. Notably, the retail portion had been subscribed 12.05 times, while the non-institutional investor (NII) segment had been filled 10.70 times. The Qualified Institutional Buyer portion showed a slower uptake, receiving bids only 0.06 times by that time.
This growing interest in Western Carriers’ IPO is being reflected not only in the formal subscription numbers but also in the grey market. The Grey Market Premium for the company’s shares has seen a significant surge, indicating rising optimism among investors. On the opening day of bidding, the IPO’s GMP stood at ₹30. As of today, it has climbed to ₹58, almost doubling within a short period.
Stock market observers attribute this surge to a mix of strong investor sentiment in the primary market and a generally positive bias on Dalal Street. The swift increase in GMP signals that investors are bullish about the company’s prospects and anticipate good returns post-listing.
Western Carriers India is an established player in the logistics industry, a sector that has witnessed robust growth due to the rapid expansion of e-commerce, infrastructure development, and increasing demand for efficient supply chain solutions in India.
As the logistics landscape becomes more competitive, Western Carriers has positioned itself well by focusing on operational efficiency and strategic investments in technology. Analysts see this as one of the major factors driving investor interest in the IPO.
Anshul Jain, Head of Research at Lakshimishree Investment and Securities Ltd, offered his perspective on the IPO, giving it a ‘subscribe’ recommendation. He noted that Western Carriers’ strong financial performance and proven track record make it an appealing investment, particularly for those looking to gain exposure to the growing logistics market in India.
Jain highlighted that the company has demonstrated its ability to maintain profitability while navigating industry challenges, such as fluctuating demand cycles and rising operational costs. The company’s focus on innovation and efficiency, along with strategic investments in technology, gives it an edge in meeting the evolving needs of the logistics industry.
The market for logistics services in India is expected to grow at a rapid pace in the coming years, supported by government initiatives such as the National Logistics Policy and the increasing shift toward digitization in supply chains. Western Carriers is well-positioned to benefit from these trends, and its IPO has provided a timely opportunity for investors to be part of this growth story.
Given the strong demand and positive investor sentiment, market experts believe that Western Carriers’ IPO could perform well post-listing. The company’s reputation for operational excellence, along with its strategic approach to growth, adds further credibility to its investment case. Investors are also likely to be drawn to the company’s consistent track record of profitability and the potential for future expansion, making this IPO a key highlight in the logistics sector.
As the subscription window nears its close on September 19, the market will continue to keep a close watch on investor interest, especially in the institutional segment, which could influence the final pricing and future performance of the stock once listed.
With the logistics sector gaining prominence in India’s economic landscape, Western Carriers’ IPO presents a compelling opportunity for both retail and institutional investors seeking to capitalize on the growth potential in this space.
