Western Carriers files draft papers with SEBI to raise funds via IPO

IPO

India’s largest private, multi-modal asset-light logistics company, Western Carriers (India) Ltd has filed a draft red herring prospectus with the Securities Exchange Board of India to raise funds via initial public offerings (IPO).

The IPO consists of a fresh issue of Rs 500 crore and an offer for sale (OFS) of up to 9.33 million shares by its existing promoter Rajendra Sethia. Currently, Rajendra Sethia holds a 99.99 percent stake in the company.

The proceeds from the fresh issue worth Rs 200 crore will be used to repay debt. As of March 2023, the firm has outstanding borrowings of Rs 260.81 crore.

The firm will also use Rs 186 crore for capital expenditure. The company plans to buy commercial vehicles and 40 feet of specialised containers and 20 feet of normal shipping containers and reach stackers.

As of December 31, 2022, the company owned over 400 GPS-enabled heavy commercial vehicles, 13 light commercial vehicles,  over 400 shipping containers and  27 reach stackers.

JM Financial and Kotak Mahindra Capital are the lead managers of the issue.

For the nine months ended December 2022, the company reported a revenue of Rs 1,206.90 crore while the net profit stood at Rs 55.09 crore. For FY22, it reported revenue of Rs 1,470.88 crore versus Rs 1,110.11 crore a year ago. Net profit for the fiscal stood at Rs 61.13 crore against Rs 44.53 crore last year.

Western Carriers operate on a scalable and asset-light business model. This allows them to offer distinct 3PL and 4PL solutions. With over five decades of experience, Western Carriers specialize in road, rail, and sea/river multi-modal transportation for both domestic and EXIM cargo to and from India.

As of December 31, 2022, Western Carriers boasted a robust customer base of more than 1100 clients spanning various sectors such as metals and mining, FMCG, pharmaceuticals, building materials, chemicals, oil and gas, utilities, and others, including textile, power, electrical equipment, and retail. Notable companies among their key clients include Tata Steel, Hindalco Industries, Vedanta, BALCO, JSW, HUL, Coca-Cola India, Tata Consumer Products, Cipla, Haldia Petrochemicals, MCPI, Gujarat Heavy Chemicals, BCPL, and DHL, among others.