Kolkata-based logistics firm Western Carriers (India) Ltd plans to use a portion of ₹400 crore IPO proceeds to buy an estimated 600 shipping containers, three reach-stackers, and 165 commercial trucks.
“A large portion of the money raised --- about ₹163 crore --- will be used for the scheduled repayment of our debt. About ₹151 crore will go into capex which includes buying of containers, container reach stackers and specialised trailers. The portion that remains is to be spent on general corporate purposes,” said Kanishk Sethia, director, WCIL in Ahmedabad, Wednesday.
Fleet expansion
Using the IPO proceeds, the company plans to purchase an estimated 600 shipping containers, which includes 300 each of 40-feet specialised containers and 20-feet normal shipping containers, states the prospectus. The company also plans to purchase three 45-tonne reach stackers and 165 commercial trucks, which are expected to be Tata Signa 5530.S BS VI AC trucks together with 40- feet 3A flatbed trailers with all three air suspension. WCIL set up in 1972 currently owns over 400 GPS-enabled heavy commercial vehicles, over 100 pieces of heavy equipment (including 32 reach stackers) and over 500 shipping containers.
“The 40 feet specialised containers are specialised containers which, among other utilities, enable large goods to be loaded vertically. We expect that these 40 feet specialised containers will allow us to carry larger quantities of goods while reducing our costs. The 20 feet normal shipping containers are the industry standard containers,” the company stated in its prospectus. “These are open top specialised containers made for carrying steel coils. If these goods are sent through road transport, 32 tonnes can only be carried, but in a railway container 64 tonnes can be accommodated. We only buy assets which are not available in the market. These are customised and we want to invest in them as we see a good future,” Sethia said.
The company official also said that WCIL’s rail logistics services include the usage of a parcel cargo express train that runs from Nagpur in Maharashtra to Tinsukia Assam, commonly referred to as the “Western Bullet”. “This train leased from Indian Railways has been carrying our cargo to an FMCG plant since the last 21 years,” said Sethia.
WCIL has announced that it will open its IPO of equity shares on September 13 in the price band of ₹163 to ₹172 per share and close on September 18. The offer includes a fresh issue of equity shares aggregating up to ₹400 crore and an offer for sale worth ₹93 crore by promoter Rajendra Sethia.