IPO listed on 24 Sep'24
Western Carriers (India) Ltd
Minimum Investment
₹ 14,964 / 87 shares
Grey market premium
₹ 20 (12% premium)
Issue price
₹ 172
Listing price
₹ 171
Listing gains
-1 (-1%)
Listing on
Sep 24, 2024
Our Verdict:
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- Western Carriers India Ltd (WCIL) stands as India’s largest privately owned, rail-centric 4PL asset-light logistics company, with stable financials. The firm’s financial health is sound, with a net debt/EBITDA ratio of approximately 1.5x. This is expected to improve as the business plans to use Rs 165 crore from the IPO proceeds to reduce some of its existing debts.
- The government's ongoing enhancements to India's logistics and infrastructure, including initiatives like PM GatiShakti and the National Logistics Policy, as well as the progressive implementation of the Dedicated Freight Corridor (DFC), will likely benefit rail-oriented logistics companies like WCIL.
- Priced with a P/E ratio of 17x based on FY24 earnings, the IPO offers a fair risk-reward mix. While short-term growth prospects seem modest, the offering looks appealing for long-term investors seeking exposure in the logistics sector.
About the company
Founded in
23 Mar'11
Managing director
Rajendra Sethia
- WCIL is India's largest privately owned, rail-focused 4PL (Fourth-Party Logistics) asset-light logistics company. In FY23, it managed the largest container volumes among private asset-light logistics players, capturing a 3% market share, ahead of competitors like Pristine Group, Adani Ports, Gateway Distriparks, and JMBaxi.
- WCIL boasts a robust infrastructure with 16 warehouses and more than 50 branch offices, facilitating multi-modal logistics services across road, rail, water, and air. It extends its operations beyond India to include Nepal, Bangladesh, and Bhutan on a smaller scale.
STRENGTHS
- Steady Financial Growth: WCIL has shown a steady increase in its financial metrics, with a compound annual growth rate (CAGR) of 7% in operational revenue and 15% in net profit from FY22 to FY24.
- Solid Return Metrics: WCIL stands out for its financial efficiency, evidenced by strong return metrics. In FY24, the company achieved a Return on Equity (RoE) of 22.41% and a Return on Capital Employed (RoCE) of 29.23%, surpassing its competitors in the industry.
- Strong Business Relationships: WCIL maintains long-term associations with major clients like Tata Steel, Hindalco, HUL, Coca Cola and Cipla. In FY24, over 80% of its revenues came from longstanding customers, with a 100% retention rate among its top 10 clients.
RISK FACTORS
- Modest Profitability Margins: While EBITDA and Net Profit margins have shown gradual improvements over the last three years, they remain below the average of industry peers. However, comparisons may not be entirely fair due to the differing revenue profiles of its listed peers.
- High Customer Dependence: WCIL's revenue dependency is significant, with the top 5, top 10, and top 20 customers representing 57.07%, 71.97%, and 80.78% of total FY24 revenue, respectively. This concentration poses a risk of substantial impact if revenue from these key clients declines.
- Promoter Concerns: The promoters of WCIL previously held director positions at Western Conglomerate Ltd, a company whose shares were suspended from trading on the Calcutta Stock Exchange during their tenure.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 492.88 crore
Fresh Issue
₹ 400 crore
OFS
₹ 92.88 crore
Price range
₹ 163 - 172
Lot size
87 shares
Issue Objective
WCIL plans to allocate the net proceeds from the fresh issue for the following objectives:
- Financing its capital expenditure needs;
- Repayment or prepayment of certain borrowings; and
- General corporate purposes.
Dates
Bidding open
13 Sep'24
Bidding close
19 Sep'24
Allotment date
20 Sep'24
Refund date
23 Sep'24
Listing
24 Sep'24
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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