Western Carriers files draft papers with Sebi for IPO

KOLKATA: City-based Western Carriers, India’s one of the largest private, multi-modal, rail-focused, asset-light logistics companies, has filed its draft red herring prospectus (DRHP) with capital markets regulator Sebi to raise around Rs 1,000 crore through an initial public offering (IPO).

Western Carriers operates on a scalable, asset-light business model which enables it to provide differentiated 3PL (third-party logistics) and 4PL (fourth-party logistics) solutions.

Rajendra Sethia, the firm’s promoter, established his logistics business in 1972, which was later acquired by Western Carriers in 2013.

As of December 31, 2022, Western Carriers had a customer base of over 1,100 across varied sectors such as metals and mining, FMCG, pharmaceuticals, building materials, chemicals, oil and gas, utilities and others. Some of its key clients are Tata Steel, Hindalco Industries, Vedanta, BALCO, JSW, HUL, Coca Cola India, Tata Consumer Products, Cipla, Haldia Petrochemicals and BCPL, among others.

The IPO comprises a fresh issue of equity shares aggregating up to Rs 500 crore and an offer for sale of up to 93,28,995 equity shares by Sethia, the promoter selling shareholder. Market sources said that offer for sale could fetch another Rs 500 crore making it Rs 1,000-crore IPO. However, the company has refused to comment on this.

Western proposes to utilise the net proceeds from the issue towards prepayment or scheduled re-payment of a portion of certain outstanding borrowing of Rs 200 crore, funding of capex, etc.


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