Western Carriers India, a leading logistics company, is currently offering its Initial Public Offering (IPO) to investors. The IPO, which opened on September 13, has attracted significant attention from both retail investors and non-institutional investors (NII). The total issue size of the IPO is ₹492.88 crore, and it will remain open for bidding until September 19. The company aims to raise ₹400 crore through the fresh issue of shares, while the remaining shares are being sold by existing shareholders in the form of an offer for sale (OFS).
The subscription status reflects strong investor interest. So far, the overall issue has been subscribed 10.64 times. The retail segment has shown the most enthusiasm, subscribing the issue 14.72 times, while the non-institutional investors have also shown high interest, subscribing 14.95 times. However, the Qualified Institutional Buyers (QIB) segment, which includes institutional investors like banks and mutual funds, has subscribed only 0.12 times.
The high subscription in the retail and NII categories indicates strong demand for the shares, but the underwhelming response from QIBs suggests that institutional investors may be more cautious.
The Grey Market Premium (GMP) is another important indicator of investor sentiment. The GMP reflects how much buyers are willing to pay for shares of a company before its official listing on the stock exchanges. As of today, the shares of Western Carriers India are trading at a premium of ₹50 in the grey market. Although this is a slight drop from the previous day’s premium of ₹58, it is still higher than the ₹30 premium seen on the opening day.
Given the issue price band of ₹163 to ₹172 per share, the current GMP suggests that the shares may list around ₹222 per share, offering investors a potential listing gain of about 29%. However, it’s important to note that GMP is not always a reliable indicator of the stock’s performance after listing. It can fluctuate based on market conditions and investor sentiment.
The price range for the Western Carriers India IPO has been set between ₹163 and ₹172 per share. The IPO consists of a combination of a fresh issue of 2.33 crore shares and an OFS of 54 lakh shares. The fresh issue proceeds will be used by the company to pay off its debt and fund its capital expenditure needs.
The company is expected to finalize the share allotment on September 20. After this, the shares will likely be listed on both the BSE (Bombay Stock Exchange) and the NSE (National Stock Exchange) on September 24.
The Western Carriers India IPO presents an opportunity for investors who believe in the long-term potential of the logistics sector. With strong demand from retail investors and a positive GMP, it looks promising for short-term gains. However, investors should always do thorough research and consider their own risk tolerance before investing in any IPO.
