WTI Cabs files DRHP for launching NSE SME IPO. Details here about upcoming IPO

WTI Cabs IPO: The Wise Travel India Limited or WTI Cabs has filed Draft Red Herring Prospectus (DRHP) to launch its initial public offering (IPO). The company aims to raise around ₹85 crore from its initial offer. However, the company is yet to get market regulator Securities and Exchange Board of India (SEBI) for launching the public offer.

Sharing its plans in regard to upcoming IPO, the company management said, “We are planning to hit primary market with WTI Cabs IPO in January 2023. The public issue is proposed for listing on NSE SME platform and the company aims to raise ₹75 crore to ₹85 crore from this public issue.”

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The company management has mentioned in the DRHP that face value of the company shares would be ₹10 per equity share.

“The Equity Shares issued through Draft Red Herring Prospectus are proposed to be listed on the EMERGE Platform of National Stock Exchange of India Limited (NSE EMERGE) in terms of the Chapter IX of the SEBI (ICDR) Regulations, 2018 as amended from time to time. For this Issue, the Designated Stock Exchange will be the National Stock Exchange of India Limited (“NSE”),” the DRHP further informs.

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Promoters of the company are Ashok Vashishth, Hema Bisht and Vivek Laroia.

Company details

WTI Cabs, a leading provider of premium cab services, is experiencing substantial growth while providing self-employment opportunities for drivers. The company, established in 2009, currently offers comprehensive transportation solutions to the corporate sector in over 250 cities across India. WTI Cabs is now planning to expand its operations internationally, starting with the launch of services in major international cities, beginning with Dubai. Ashok Vashisht, the founder and CEO of WTI Cabs, revealed that the company has obtained a car rental license in Dubai and will soon commence business operations in the city. Following this, there are plans to initiate business in other global cities in the coming years.

WTI Cabs’ financials

In the pre-COVID fiscal year 2019-20, the company’s revenue reached ₹204 crore. Although the COVID-19 pandemic impacted revenue, it rebounded in the fiscal year 2022-23, reaching ₹250 crore, resulting in a net profit of ₹10.29 crore. The company anticipates total revenue of ₹400 crore in the current fiscal year. In the first half (April-September 2023), WTI Cabs reported total revenue of ₹190 crore, with a net profit of ₹11.33 crore rupees.

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Company’s corporate clientele

Company’s promoter Ashok Vashisht discussed WTI Cabs’ business model, stating that the company provides complete transportation solutions to the corporate sector, including software, manpower, and fleet services tailored to their needs. The company boasts a fleet of over 8,000 vehicles, including various models such as Innova Crysta, Mercedes Benz, MG Hector, Tempo Traveler, and more. WTI Cabs engages in long-term contracts (service contracts) with corporate clients, and currently, it has service contracts with over 500 companies, including several prominent multinational corporations from various countries.

Approximately 85% of the company’s business comes from the business-to-business (B2B) segment, with the remaining 15% coming from individual customers. The company operates counters at 17 airports across the country, with offices in major cities, including Mumbai and Delhi. The company’s workforce has grown to over 750 employees, up from 500 in 2020.

Empowering drivers

WTI Cabs provides self-employment opportunities to drivers, enabling them to become self-reliant. Recognizing the hard work involved in driving, WTI Cabs assists drivers in obtaining loans to purchase their own vehicles. The company takes pride in having more than 12,000 skilled drivers in its network.