Western Carriers India IPO Day 2: GMP, Subscription Status, and Should You Apply?

Western Carriers (India) Limited’s Initial Public Offering (IPO) continues to attract attention as it enters its second day of bidding on September 16, 2024. Investors have until September 18 to subscribe, with the company aiming to raise ₹492.88 crore through a combination of fresh shares and an Offer for Sale (OFS). The IPO will be listed on both the BSE and NSE.

Western Carriers India IPO: GMP and Market Sentiment

As of today, the Grey Market Premium (GMP) for Western Carriers India IPO is ₹58, reflecting strong positive sentiment in the grey market. The IPO's GMP has nearly doubled since the opening day, indicating increasing investor confidence and a positive outlook on Dalal Street.

This surge in GMP is attributed to market optimism and the strong growth potential of the logistics sector in India, where Western Carriers operate.

Subscription Status

By 12:30 PM on Day 2, Western Carriers India IPO had been subscribed 2.66 times overall. Here’s a breakdown of the subscription:

• Retail Portion: 2.43 times
• Non-Institutional Investors (NII): 2.66 times
• Qualified Institutional Buyers (QIB): 0.01 times

The response from retail and non-institutional investors has been particularly strong, with both categories seeing significant interest on the second day.

IPO Review: Should You Apply?

Several analysts have weighed in on whether investors should apply for Western Carriers India IPO:

1. Anshul Jain, Head of Research at Lakshmishree Investment, recommends subscribing, citing the company’s strong fundamentals and its positioning in the growing Indian logistics sector. He highlighted the company’s ability to navigate industry challenges and capitalize on emerging opportunities through strategic investments in technology. According to Jain, these factors make it a promising investment for those looking to gain exposure to the logistics market.
2. Akriti Mehrotra, Research Analyst at StoxBox, also gave the IPO a ‘subscribe’ rating. She pointed out that Western Carriers' valuation, with a Price-to-Earnings (P/E) ratio of 16.8x, is relatively lower compared to its peers. Given the company’s robust financials and growth prospects, she recommended the IPO for medium to long-term investors.

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Key Considerations Before Applying

• Attractive Valuation: The company’s P/E ratio is lower than industry peers, which makes it appealing from a valuation standpoint.
• Growth Potential: Western Carriers has a strong presence in the logistics sector, which is poised for growth due to increasing demand for efficient transport and supply chain solutions.
• Risks: As with any investment, it’s important to consider your risk tolerance and perform due diligence before applying. Market conditions, geopolitical factors, and industry competition could impact future returns.