Western Carriers India IPO Day 4: Ipo Gmp Stood at 50 (29.07%)

West Carriers India IPO: The Western Carriers India IPO is a book-built issue aiming to raise ₹492.88 crore, opening for subscription on Friday, September 13, and remaining available until Thursday, September 19. The IPO consists of a fresh issue of 2.33 crore shares and an offer for sale (OFS) of 54 million shares. The company plans to use the proceeds to pay down debt and finance capital expenditure. The allotment of shares is expected by Friday, September 20, with a stock listing on the BSE and NSE anticipated by Tuesday, September 24.

Western Carriers India Ipo Gmp (Grey Market Premium)

Shares of Western Carriers India are currently trading at a premium in the grey market, which reflects investor optimism about the IPO. As of today, the GMP stands at ₹50, which is slightly reduced from ₹58 a few days ago. Despite this dip, the premium remains higher than last Friday’s GMP of ₹30. Based on the current GMP and the IPO’s price band of ₹163 to ₹172 per share, the shares may list at an anticipated price of ₹222, marking a premium of 29.07%. The decreasing GMP suggests some cooling off in demand, but investor sentiment remains positive overall.

Subscription Status

As of Day 3 of the IPO auction, the book-building issue has been subscribed 9.87 times overall. Retail investors have shown the most interest, with a subscription of 13.97 times. Non-institutional investors (NII) have subscribed at 13.33 times, indicating significant interest from this segment as well. The Qualified Institutional Buyer (QIB) segment, however, has only been subscribed 0.10 times, which may reflect cautious optimism from institutional investors at this stage.

Expert Reviews and Recommendations

Various experts and brokerage firms have expressed favorable views on Western Carriers India’s IPO. The company’s valuation appears attractive, and its growth prospects are strong due to its market position and expansion into multimodal transport.

• Choice Equity Broking has a “book” recommendation, noting that the company is offering an EV/sales multiple of 1, which is below the peer average of 2.4 times. The brokerage highlights the company’s potential to benefit from improved rail transport infrastructure, including the development of Dedicated Freight Corridors (DFC). The IPO’s pricing is seen as attractive, making it a viable investment opportunity.
• Anand Rathi Share Brokerage also has a “reserve” recommendation, citing the company’s operational efficiency and plans for growth. At the upper price band, the company has a P/E ratio of 21.8 times, and the return on net worth is a solid 22.4%. The brokerage believes the company is fairly valued and recommends holding the stock post-listing for long-term gains.

Valuation and Financial Outlook

Western Carriers India is being offered at a price band of ₹163 to ₹172 per share. At this price, the company’s valuation stands at ₹17,536 million post-issue, with a strong return on net worth of 22.4%. Analysts consider this valuation fair, especially in comparison to peers in the logistics and multimodal transport sectors. The company is positioned to capitalize on India’s growing rail transport infrastructure, and its focus on reducing debt and improving capital expenditure efficiencies strengthens its outlook.

Conclusion

Western Carriers India’s IPO has garnered significant interest from both retail and non-institutional investors, reflecting confidence in the company’s growth prospects and its leadership in the logistics sector. While the grey market premium has slightly declined, it remains robust, indicating investor optimism ahead of the stock listing. Experts and brokerages have recommended a “book” or “reserve” position in the IPO, suggesting it is a strong candidate for medium- to long-term investment. Investors should continue to monitor the QIB segment’s participation as the subscription period nears its close.