By- John, September 24, 2024
Muted Debut for Western Carriers on BSE
Shares of Western Carriers Limited made a quiet entrance on the stock market today, listing at ₹170, a 1.2% dip from its issue price of ₹172 per share on the BSE. The debut fell short of the grey market expectations, where shares were trading at a 10% premium.
Missed Grey Market Hype
Despite decent investor interest, with the IPO being subscribed 30.46 times, Western Carriers’ stock failed to live up to the hype. The grey market, an unofficial platform where shares trade before official listing, had anticipated a stronger debut.
IPO Details
The ₹493-crore public offer included both fresh issues and an offer for sale. It saw strong demand from non-institutional investors with 44.67 times subscriptions, while qualified institutional buyers subscribed 27.99 times, and retail individual investors’ quota fetched 25.77 times subscriptions.
Company Overview
Western Carriers, one of India’s leading private, multimodal logistics companies, serves a diverse customer base of 1,647 across sectors such as metals and mining, FMCG, pharmaceuticals, and oil and gas. Key clients include Tata Steel, Hindalco Industries, Vedanta, HUL, and Coca-Cola India.
Fund Utilization
Proceeds from the fresh issue will be used to repay debt (₹163.5 crore), fund capital expenditures for purchasing commercial vehicles and equipment (₹152 crore), with the remaining funds allocated for general corporate purposes.
Outlook
While Western Carriers had a modest listing day, its strong fundamentals and diverse client base may support long-term growth. Investors are advised to watch for future developments and consider professional advice before making investment decisions.
Stay tuned for more updates on stock market movements!
