Western Carriers (India)
Book Building issueMainboard₹493 Cr issue
-1.16%
Listing gain over issue price
Issue size
₹493 Cr
1 lot at cut-off
₹14,964
Lot size
87shares
Open
13 Sep 2024
Close
19 Sep 2024
Allotment
20 Sep 2024
Listing
24 Sep 2024
Listing performance
Issue price
₹172
Listed at
₹170
Listing-day close
₹159.45
Latest price
₹91
Close on 23 Oct 2026
Listing gain
-1.16%
Return since issue
-47.09%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 13 Sep 2024 – 19 Sep 2024
- Listing date
- 24 Sep 2024
- Face value
- ₹5 per share
- Issue price
- ₹172 per share
- Lot size
- 87 shares
- Issue type
- Book Building issue
- Total issue size
- ₹493 Cr
- Market cap at offer price
- ₹1,754 Cr
- Promoter holding
- 99.99% → 71.89% pre-issue → post-issue
- ISIN
- INE0CJF01024
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- JM Financial Ltd.
- Registered office
- 2/6 Sarat Bose Road, 2nd Floor, West Bengal
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 85,96,743 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 87 shares per lot, in multiples, at ₹172
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 87 | ₹14,964 |
| Retail (max) | 13 | 1,131 | ₹1,94,532 |
| S-HNI (min) | 14 | 1,218 | ₹2,09,496 |
| S-HNI (max) | 66 | 5,742 | ₹9,87,624 |
| B-HNI (min) | 67 | 5,829 | ₹10,02,588 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
85,96,743
Anchor portion
₹148 Cr
at ₹172 per share
Valuation and performance
Valuation at offer price
₹172 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 10.21 | 7.88 |
| P/E (×) | 16.85 | 21.83 |
| Price to book (×) | 3.40 | — |
| Market cap | — | ₹1,754 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 20.17%
- ROCE
- 29.23%
- Debt / equity
- 0.67
- PAT margin
- 4.77%
- NAV per share
- ₹50.62
- Price to book
- 3.40
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Western Carriers (India)
Western Carriers (India) Limited (incorporated March 23, 2011, converted to public company February 28, 2013) operates as a private, multi-modal, rail-focused, 4PL asset-light logistics company. The company was formed when Rajendra Sethia transferred his business carried under the name 'Western Carriers' (erstwhile sole proprietorship) to the company on July 1, 2013 on a going concern basis. The company possesses expertise in facilitating multi-modal transportation across roads, railways, and waterways, catering to both domestic and EXIM cargo movements. It addresses supply chain complexities by creating customized, one-stop/single-window, end-to-end and integrated logistics solutions for customers. As of Fiscal 2024, the company had domestic and EXIM market share of 6% and 2% respectively based on container volumes handled by private players.
Company Analysis
from RHPWestern Carriers (India) Limited is the largest private, multi-modal, rail-focused, 4PL asset-light logistics company in India, providing end-to-end integrated logistics solutions across domestic and EXIM cargo movements using road, rail, and waterway transportation.
Western Carriers (India) Limited (incorporated March 23, 2011, converted to public company February 28, 2013) operates as a private, multi-modal, rail-focused, 4PL asset-light logistics company. The company was formed when Rajendra Sethia transferred his business carried under the name 'Western Carriers' (erstwhile sole proprietorship) to the company on July 1, 2013 on a going concern basis. The company possesses expertise in facilitating multi-modal transportation across roads, railways, and waterways, catering to both domestic and EXIM cargo movements. It addresses supply chain complexities by creating customized, one-stop/single-window, end-to-end and integrated logistics solutions for customers. As of Fiscal 2024, the company had domestic and EXIM market share of 6% and 2% respectively based on container volumes handled by private players.
LogisticsMulti-modal transportationFourth-Party Logistics (4PL)Container transportationSupply chain management
Objects of the Issue
- Prepayment or scheduled re-payment of a portion of certain outstanding borrowings availed by our Company ₹1,635.00 million p.17
- Funding of capital expenditure requirements of our Company towards purchase of (i) commercial vehicles; (ii) 40 feet specialised containers and 20 feet normal shipping containers; and (iii) reach stackers ₹1,517.10 million p.17
- General corporate purposes ₹477.28 million p.17
- Prepayment or scheduled re-payment of a portion of certain outstanding borrowings availed by our Company ₹1,635.00 million p.103
- Funding of capital expenditure requirements towards purchase of: (i) commercial vehicles; (ii) 40 feet specialised containers and 20 feet normal shipping containers; and (iii) reach stackers ₹1,517.10 million p.103
- General corporate purposes ₹477.28 million p.103
- Funding of capital expenditure requirements towards purchase of commercial vehicles p.170
- Funding of capital expenditure requirements towards purchase of 40-feet specialised containers and 20-feet normal shipping containers p.170
- Funding of capital expenditure requirements towards purchase of reach stackers p.170
Issue Structure
- Total Issue
- ₹4,928.80 million (28,655,813 equity shares of face value of ₹5 each)
- Fresh Issue
- ₹4,000 million (23,255,813 equity shares of face value of ₹5 each)
- Offer for Sale
- ₹928.80 million (5,400,000 equity shares of face value of ₹5 each by Rajendra Sethia)
- Price Band
- ₹163 per equity share (Floor Price) to ₹172 per equity share (Cap Price); Final Offer Price: ₹172 per equity share
- Lot Size
- 87 equity shares and in multiples of 87 equity shares thereafter
- Face Value
- ₹5 per equity share
Business Model
The company earns revenue through providing end-to-end logistics solutions including cargo transportation, handling, storage, and related facilities and services. It operates as a 4PL (Fourth-Party Logistics) asset-light model, leveraging network partners, third-party service providers and vendors/suppliers for assets/facilities necessary for operations (vehicles, warehouses, railway rakes and wagons). The company provides multi-modal transportation services and customized logistics solutions, with revenue from operations of ₹16,857.69 million in Fiscal 2024.
Business Segments
Revenue from transportation of goods from customers' facilities and warehouses to designated locations, including freight charges, handling charges and other logistics services
Provision of integrated, customized, end-to-end supply chain solutions across multimodal transportation modes (road-rail), warehousing, and value-added services
Services including cargo aggregation, packaging, labelling, inventory management, customs clearance documentation, and other supply chain optimization services
Multi-modal rail transportation services suited to customer needs varying from mini-rakes comprising up to 20 wagons to jumbo rakes supporting capacity of up to 2,500 MT, including parcel cargo express train ('Western Bullet')
Land transportation through commercial vehicles ranging from 1 metric tonne in Ace/LCV to 42 metric tonnes in DC Trailers, with 169,229 commercial vehicle trips operated in Fiscal 2024 (19.11% owned, 80.89% through spot arrangements)
Comprehensive suite of ocean, coastal and inland river logistics services through coastal or long-haul ships (breakbulk or containerised), liner space booking, barging services to Bangladesh via Indo-Bangla protocol route
Air logistics services provided on need basis for transportation of time-sensitive goods including critical spare parts, raw material, and packaging material
Custom house agency services holding licenses in company's own name at most major ports in India, providing EXIM customs clearance and authorized economic operator (AEO) services
Warehouse management, product packaging, pre-shipment inspection, containerization, fumigation, stevedoring, palletization, labeling, cargo handling, customs clearance, in-plant logistics, inventory management
3PL services combining transportation with value-added services; 4PL services providing end-to-end supply chain management with complete ownership of customers' supply chains
Complex national and cross-border project execution including oil rig mobilization/de-mobilization, cement plant construction logistics, and specialized infrastructure projects
The Group is engaged in providing logistics and allied services to various customers in India and is a logistics service provider. The performance of the Group is assessed and reviewed by the Chief Operating Decision Maker as a single operating segment.
SWOT Analysis
Strengths
- • Largest private multi-modal rail-focused 4PL asset-light logistics company in India by container volumes(p.17)
- • Strong domestic and EXIM market share with 6% and 2% respectively in FY2023(p.17)
- • Multi-modal transportation expertise across roads, railways, and waterways for domestic and EXIM cargo(p.17)
- • Customized end-to-end integrated logistics solutions addressing complex customer needs(p.17)
- • Experienced promoters with significant logistics industry expertise(p.39)
- • Extensive project logistics experience with international cross-border operations(p.47)
- • Established infrastructure with substantial warehousing capacity across India(p.47)
- • Modernized technology systems supporting operations(p.48)
- • No material insurance claims or system failures since April 2021(p.47)
- • Largest private multimodal rail-focused 4PL asset-light logistics company in India by container volumes(p.167)
- • Customised end-to-end supply chain solutions with inherent entry barriers(p.170)
- • Over 50 years of promoter experience in logistics and rail-focused operations(p.178)
- • Custom house agency licenses at most major ports enabling seamless EXIM capabilities(p.161)
- • Asset-light model with high profitability metrics - highest RoCE at 29.23%(p.164)
- • Strong long-term customer relationships with 80% revenue from customers with 3+ years tenure(p.169)
- • Largest platinum business associate and associate partner of CONCOR providing 6% domestic and 4% EXIM TEUs(p.163)
- • EBITDA growth outpacing revenue - CAGR of 11.72% vs revenue CAGR of 4.65%(p.178)
- • Established market presence in Indian logistics with integrated multimodal transportation services(p.252)
- • Strong financial performance with consistent revenue and profit growth over three years(p.248)
- • Established corporate governance structure with independent directors and multiple board committees(p.216)
- • Significant financial asset base and solid equity position(p.247)
- • Largest private multi-modal rail-focused 4PL asset-light logistics player in India by container volumes handled(p.303)
- • Significant market share in domestic and EXIM container logistics(p.303)
- • Strong revenue and EBITDA growth trajectory over three years(p.305)
- • Long-standing customer relationships with 100% retention rate for top 10 customers in Fiscal 2024(p.304)
- • Platinum business associate status and largest associate partner of Indian rail container logistics provider(p.305)
- • Strong EBITDA margin improvement and highest RoCE in speciality logistics industry(p.305)
- • Industry recognition and awards from key customers including Tata Steel and BALCO(p.305)
- • Diverse customer base across multiple sectors with 1,647 customers as of March 31, 2024(p.312)
Weaknesses
- • High customer concentration with top 20 customers representing 80.78% of revenue(p.33)
- • Significant dependence on metals and FMCG industries (72.72% of revenue combined)(p.34)
- • High working capital requirements with 96 days working capital cycle as of March 31, 2024(p.35)
- • Trade receivables increased significantly to 114 days as of March 31, 2024 from 77 days in 2022(p.35)
- • 42.58% of cash operating expenses dependent on a single Indian rail container logistics provider(p.37)
- • Past non-compliance under Companies Act with penalties imposed on company and officers(p.39)
- • Succession planning risk with no formulated succession plan for Chairman and Managing Director(p.39)
- • Promoters were directors of Western Conglomerate Limited whose shares were suspended from trading(p.41)
- • Heavy dependence on leased properties with lock-in periods restricting operational flexibility(p.51)
- • Inadequate documentation and registration of lease agreements creating legal risk(p.51)
- • Significant outstanding debt with rising leverage ratios(p.55)
- • Dependence on promoter personal guarantees for secured borrowings(p.56)
- • Outstanding litigation involving promoters including criminal proceedings(p.49)
- • Limited pool of skilled manpower with high attrition rates(p.54)
- • Contingent liabilities including tax and regulatory demands(p.54)
- • High customer concentration - top 10 customers represent 72% of revenue(p.175)
- • Elevated working capital requirement of 96 days(p.182)
- • Debt to Equity ratio of 0.67 with Net Debt to EBITDA of 1.52(p.182)
- • Promoter has provided personal guarantees to multiple lenders for company facilities(p.206)
- • Dependence on CONCOR as key asset provider with 60%+ share of company's domestic rail volumes(p.163)
- • High leverage with substantial borrowing obligations relative to equity(p.247)
- • Significant trade receivables concentration indicating customer credit risk and working capital pressure(p.247)
- • Disputed litigation involving promoters related to property rights and family disputes(p.234)
- • Incomplete promoter group disclosures due to non-cooperation from family member(p.234)
- • History of listed company suspension involving promoters(p.215)
- • Significant dependence on top customers for revenue concentration(p.313)
- • Customer concentration risk with largest customer representing 16.47% of revenue(p.313)
- • Declining return on equity and return on capital employed over three years(p.305)
- • Increasing working capital days and debt-to-EBITDA ratio(p.306)
- • Throughput volume decline of 10.88% in Fiscal 2023(p.311)
- • Modest revenue growth rate of 3.23% in Fiscal 2024 despite EBITDA growth(p.306)
- • High operational expenses as percentage of revenue at 85.22% in Fiscal 2024(p.315)
- • High dependence on limited number of key customers(p.341)
- • Reliance on single third-party rail logistics provider controlled by Government(p.341)
- • Exposure to working capital pressures from payment timing mismatches(p.335)
- • Significant increase in short-term borrowings creating financing burden(p.334)
- • Material litigation and regulatory compliance issues involving Promoters(p.342)
Opportunities
- • Growth in logistics sector driven by Government initiatives like National Logistics Policy and Dedicated Freight Corridors(p.17)
- • Rising domestic manufacturing and consumption creating increased demand for logistics services(p.17)
- • Increasing adoption of integrated fulfilment services and digitised supply chains(p.17)
- • Expanding value-added services and enhancing technological capabilities(p.42)
- • Pursuit of strategic alliances and acquisitions to enhance scale and market position(p.42)
- • Indian logistics market growth driven by e-commerce and EXIM expansion(p.49)
- • Capacity to cater to customers in free trade and warehousing zones(p.59)
- • Potential to reduce transportation inefficiencies through improved technology and modal mix(p.50)
- • Container rail multimodal market expected to grow at CAGR of 24% from ₹327 billion (FY24) to ₹975 billion (FY29)(p.176)
- • Government targets to shift freight modal share from 27% to 40% by 2035 through National Rail Plan(p.177)
- • Dedicated Freight Corridor expected to reduce logistics costs and shift freight traffic from road to rail(p.177)
- • Government targets to reduce logistics costs from 13-14% to 8-10% of GDP through National Logistics Policy(p.177)
- • E-commerce logistics opportunity with Indian Railways planning 25 high-speed freight trains(p.180)
- • Opportunity to expand into new geographies including Bangladesh, Nepal and SAARC countries(p.180)
- • Multi-modal rail-road market expected to grow from ₹1,714 billion (FY24) to ₹4,667 billion (FY29) at 22% CAGR(p.176)
- • Expansion of warehousing and ancillary services business(p.252)
- • Capital investment program for fleet and infrastructure expansion(p.250)
- • Geographic expansion through multiple operational locations across India(p.230)
- • Rapid growth projected in multi-modal rail-road logistics market at 22% CAGR to Fiscal 2029(p.313)
- • Container rail multi-modal market expected to grow at 24% CAGR reaching ₹975 billion by Fiscal 2029(p.314)
- • Government infrastructure initiatives including GSNMP, National Rail Plan, and DFCs to expand logistics capacity(p.314)
- • Government target to reduce logistics costs from 13% to 7-8% of GDP creating structural opportunity(p.314)
- • Indian logistics industry projected to reach ₹35.3 trillion by Fiscal 2029 at 10.3% CAGR(p.313)
- • Opportunity to acquire new customers with 395 new customers acquired in Fiscal 2024(p.312)
- • Strategic positioning to benefit from shift in freight modal share from 27% to 40% by 2035 under National Rail Plan(p.314)
- • Revenue growth through addition of new customers(p.329)
- • Increased utilization of rail container logistics services(p.329)
- • Expansion of operational capabilities and network infrastructure(p.335)
Threats
- • Customer concentration risk with loss of top customers materially affecting business(p.33)
- • Dependence on metals and FMCG industries sensitive to economic conditions(p.34)
- • Disruptions in logistics infrastructure including ports, railways, roads, and airports(p.34)
- • Weather conditions and natural calamities affecting logistics infrastructure and freight traffic(p.34)
- • Risk of change in control of government-controlled Indian rail container logistics provider affecting business relationship(p.23)
- • Highly competitive and fragmented logistics industry with low barriers to entry(p.42)
- • Volatility in fuel prices affecting profitability and margins(p.47)
- • Adverse developments in global trade volumes and import-export volumes affecting business(p.47)
- • Vulnerability to external trade disruptions and geopolitical instability(p.47)
- • Risk of obstruction in international and domestic trade flows(p.47)
- • Operational risks from accidents, equipment breakdown, and facility damage(p.47)
- • Technology system failure vulnerability despite safeguards(p.48)
- • High structural intermediation and inefficiency costs in Indian logistics(p.49)
- • Inability to pass on cost increases to customers due to competition(p.50)
- • Exposure to hazardous and illegal goods transportation risks(p.52)
- • Macroeconomic vulnerability including inflation and currency volatility(p.67)
- • Regulatory and compliance uncertainty in evolving policy environment(p.67)
- • Increased competition from rising private CTO players and road/maritime transport providers(p.166)
- • Slower adoption of rail modal shift requiring substantial capital and time investment(p.166)
- • Operational risks from rail accidents, aging infrastructure and equipment malfunctions(p.166)
- • Limited capacity on key routes causing bottlenecks and increased transportation costs(p.166)
- • Increasing ESG compliance pressure leading to higher operational costs and reputational risks(p.166)
- • Rapid technological change requiring costly upgrades and cyber threat vulnerability(p.166)
- • Highly fragmented industry with low barriers to entry dominated by unorganized players(p.188)
- • Exposure to logistics industry cyclicality and economic volatility(p.239)
- • Finance costs rising and impacting profitability amid economic uncertainties(p.248)
- • Regulatory compliance risks and listing agreement requirements post-IPO(p.216)
- • Customer concentration and credit risk from significant trade receivables(p.266)
- • Highly fragmented and competitive Indian road transportation industry with low entry barriers(p.317)
- • Competitors may attract customers by matching commercial terms or expanding networks(p.317)
- • Sensitivity to economic conditions and general commercial activity in India(p.313)
- • Exposure to fuel and labour cost fluctuations affecting operational expenses(p.313)
- • Risk of loss of major customers or reduction in customer orders(p.313)
- • Dependence on Indian rail container logistics provider for significant business volumes(p.315)
- • Risk of increased pricing pressure and compressed margins in competitive environment(p.313)
- • Vulnerability to fuel price volatility and cost inflation(p.340)
- • Risk of inability to pass cost increases to customers(p.340)
- • General inflationary pressures on operating costs(p.340)
- • Intensifying competitive conditions in logistics industry(p.341)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Rajendra Sethia | Promoter / Promoter Selling Shareholder | 78,689,200 equity shares (99.99%) | 73,289,200 equity shares (71.88%) |
| Kanishka Sethia | Promoter | 4,920 equity shares (Negligible) | 4,920 equity shares (Negligible) |
| Rajendra Sethia | Promoter/Promoter Selling Shareholder | 99.99% | 71.88% |
| Kanishka Sethia | Promoter | Negligible | Negligible |
| Sushila Sethia | Promoter Group | Negligible | Negligible |
| Rajendra Sethia Family Trust | Promoter Group | Negligible | Negligible |
| Rajendra Sethia | Promoter/Chairman and Managing Director | — | — |
| Kanishka Sethia | Promoter/Whole-time Director and CEO | — | — |
| Rajendra Sethia | Promoter | 99.99% | — |
| Kanishka Sethia | Promoter | 0.01% | — |
| Rajendra Sethia | Promoter | 99.99% | — |
| Kanishka Sethia | Promoter | 0.00% | — |
| Rajendra Sethia | Promoter Selling Shareholder | — | — |
Leadership
Rajendra Sethia · Promoter, Chairman and Managing Director
Kanishka Sethia · Promoter, Whole-time Director and Chief Executive Officer
Dinesh Kumar Mantri · Chief Financial Officer
Sapna Kochar · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Western Carriers (India) IPO FAQs
What is the lot size of Western Carriers (India) IPO?
The minimum lot size of Western Carriers (India) IPO is 87 shares. One lot costs ₹14,964 at the cut-off price.
When does Western Carriers (India) IPO open and close?
Western Carriers (India) IPO opened for subscription on 13 Sep 2024 and closed on 19 Sep 2024.
What is the listing date of Western Carriers (India) IPO?
Western Carriers (India) IPO listed on 24 Sep 2024.