The IPO comprises a fresh issue of equity shares aggregating up to Rs 500 crore and an Offer For Sale of up to 93.29 lakh equity shares by promoter Rajendra Sethia
Logistics company Western Carriers (India) Ltd has filed preliminary papers with capital markets regulator Sebi to raise funds through an Initial Public Offering (IPO). The IPO comprises a fresh issue of equity shares aggregating up to Rs 500 crore and an Offer For Sale (OFS) of up to 93.29 lakh equity shares by promoter Rajendra Sethia, according to the Draft Red Herring Prospectus (DRHP).
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The company may consider a pre-IPO placement for up to Rs 100 crore. If such placement is completed, the fresh issue size will be reduced.
The Kolkata-based company proposes to utilise the net proceeds from the fresh issue towards debt payment to the tune of Rs 200 crore, to fund capital expenditure requirements of Rs 186 crore towards purchase of commercial vehicles, 40 feet specialised containers and 20-feet normal shipping containers and reach stackers; and balance towards general corporate purposes.
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Western Carriers, is India’s leading private, multi-modal, rail-focused, asset-light logistics company, with a customer base of over 1,100 across varied sectors such as metals and mining, FMCG, pharmaceutical, building materials, chemicals, oil and gas, and utilities as of December 2022.
Some of its key clients are companies, including Tata Steel, Hindalco Industries, Vedanta, JSW, HUL, Coca-Cola India, Tata Consumer Products, Cipla, Haldia Petrochemicals and Gujarat Heavy Chemicals.
As of fiscal 2022, the company’s revenue from operations was Rs 1,470 crore, with a profit after tax of Rs 61 crore.
JM Financial Ltd and Kotak Mahindra Capital Company Ltd are the book-running lead managers to the issue. The equity shares are proposed to be listed on BSE and NSE.
