Kolkata-based Western Carriers (India) Ltd, a multi-modal, rail-focused, asset-light logistics company, has filed its draft red herring prospectus (DRHP) with capital markets regulator SEBI to raise funds through an initial public offering (IPO).
According to the DRHP, the IPO comprises of a fresh issue of equity shares aggregating up to ₹500 crore and an offer for sale of up to 93,28,995 equity shares by Rajendra Sethia, the Promoter Selling Shareholder.
Use of funds
Western Carriers proposes to utilise the net proceeds from the fresh issue towards prepayment or scheduled re-payment of a portion of certain outstanding borrowings of ₹200 crore; close to ₹186 crore would go towards funding of capital expenditure requirements and the remaining towards general corporate purposes, according to information available in DRHP.
The company may undertake a pre-IPO placement for cash consideration aggregating up to ₹100 crore prior to the filing of the RHP. If the pre-IPO placement is completed, the fresh issue size will be reduced to that extent, it said.
As of FY22, the company’s revenue from operations was ₹1,470 crore, with a net profit of ₹61 crore.
As of December 31, 2022, Western Carriers had a customer base of over 1,100 across metals and mining, FMCG, pharmaceuticals, building materials, chemicals, oil and gas, utilities and others.
JM Financial Ltd and Kotak Mahindra Capital Company are the Book-Running Lead Managers to the offer. The equity shares are proposed to be listed on the BSE and NSE.