Western Carriers (India) Secures Rs 148 Crore from Anchor Investors Ahead of IPO

Logistics company Western Carriers (India) mobilised Rs 148 crore from anchor investors ahead of its IPO's public subscription starting September 13. Key investors include Aditya Birla Sun Life, Kotak Mahindra Life, and BNP Paribas. The IPO, worth Rs 493 crore, aims to use proceeds for debt repayment and capital expenditure.

Logistics company Western Carriers (India) announced on Thursday that it has raised Rs 148 crore from anchor investors, just a day before opening its initial public offering (IPO) for public subscription.

The anchor investors include prominent names such as Aditya Birla Sun Life Insurance Company, Kotak Mahindra Life Insurance Company, Motilal Oswal Mutual Fund, Kotak MF, Aditya Birla Sun Life MF, Nippon India MF, BNP Paribas, Societe Generale, and Citigroup Global Markets Mauritius.

According to a circular on BSE's website, the company has allotted 85.97 lakh equity shares to 15 funds at Rs 172 each. The total transaction size amounts to Rs 148 crore. Of these shares, 39.93 lakh equity shares were allocated to four domestic mutual funds via six schemes.

The Kolkata-based company's Rs 493 crore IPO will be open for public subscription from September 13 to September 18, with a price range of Rs 163 to Rs 172 per share. The IPO includes a fresh issue of equity shares aggregating up to Rs 400 crore and an offer for sale of 54 lakh equity shares worth Rs 93 crore by promoter Rajendra Sethia.

The proceeds from the fresh issue will be used for debt repayment (Rs 163.5 crore), funding capital expenditure for purchasing commercial vehicles, shipping containers, and reach stackers (Rs 152 crore), with the remaining funds earmarked for general corporate purposes.

Investors can bid for a minimum of 87 equity shares in multiples thereof. Western Carriers is a leading private, multi-modal, rail-focused, asset-light logistics firm in India, serving 1,647 customers across various sectors like metals, FMCG, and pharmaceuticals as of March 2024.

Key clients include Tata Steel, Hindalco Industries, Vedanta, and HUL. In fiscal 2024, the company reported revenues of Rs 1,685 crore and a profit after tax of Rs 80 crore. JM Financial and Kotak Mahindra Capital Company are the book-running lead managers for the IPO, and the shares will be listed on BSE and NSE.

(With inputs from agencies.)