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The initial public offering (IPO) of Western Carriers (India) Ltd., a leading logistics company, has garnered significant interest in its first two days of public subscription. The IPO, which opened on Friday, September 13th, saw a subscription level of 5.09 times on Monday, September 14th. This translates to bids for 10,21,57,923 shares against the 2,00,59,070 shares on offer, indicating strong investor confidence in the company's prospects.
The IPO's price band has been set at Rs 163 to Rs 172 per share, resulting in a total issue size of Rs 492.88 crore. Notably, the category for non-institutional investors has seen a 5.61 times subscription, while retail individual investors (RIIs) have subscribed 7.77 times. However, the Qualified Institutional Buyers (QIB) category saw a relatively low 1% subscription. This suggests that retail investors and non-institutional investors are showing strong interest in the IPO.
The 'grey market premium' (GMP) is another important indicator of investor sentiment. In this case, Western Carriers' unlisted shares are trading at Rs 62 higher in the grey market than its issue price. This translates to a 36.05% potential listing gain, suggesting that the market expects a strong opening for the IPO. However, it's crucial to remember that GMPs are based on market sentiment and can be volatile.
Analysts have offered mixed recommendations on the IPO. Anand Rathi has given a 'subscribe' recommendation, citing the company's robust growth, operational efficiency, and fair valuation at the upper price band. The brokerage firm highlights Western Carriers' plans to enhance its service offerings and expand its network infrastructure to improve its performance. Swastika Investmart, on the other hand, has provided a 'may apply' rating, acknowledging the company's slow but consistent financial growth and reasonable valuation. However, they also caution about the long payment cycle and operational risks faced by the company.
StoxBox research analyst Akriti Mehrotra has also recommended a 'subscribe' rating. She highlights the company's strong financials, strategic initiatives, and positioning to capitalize on the expanding rail-road multi-modal sector. The analyst believes that the IPO is priced at a reasonable PE multiple compared to its peers. The company's robust financial performance, growth plans, and favorable position in the logistics industry are key factors contributing to the positive outlook on the IPO.
It's important to note that while analyst recommendations offer insights, investors should conduct their own due diligence before making any investment decisions. The final decision to subscribe to the IPO rests with individual investors, who should consider their own risk appetite and investment goals.
Source: Western Carriers India IPO Day 2: Check Subscription Status, GMP, Review