Fri Sep 13 05:46:53 UTC 2024: ## Family Feud Threatens Western Carriers India Ltd’s IPO

**Kolkata, India** – A legal battle between two brothers, Narendra Sethia and Rajendra Sethia, is casting a shadow over Western Carriers India Ltd’s (WCIL) upcoming initial public offering (IPO). Narendra, the brother of WCIL Chairman and MD Rajendra, has accused the company of concealing information about their ongoing legal dispute in the IPO prospectus.

The dispute involves various issues, including a non-compete agreement, property rights, and a case before the National Company Law Tribunal (NCLT). Narendra Sethia has alleged that WCIL’s prospectus, which was approved by the Securities and Exchange Board of India (SEBI), fails to mention these legal challenges.

In a letter to SEBI, Narendra Sethia has expressed concerns about the potential impact of these undisclosed disputes on public investors. He argues that the failure to disclose this information could result in significant losses for investors.

SEBI has not responded to inquiries from The Indian Express regarding the absence of these risk factors in the IPO prospectus.

While Rajendra Sethia denies the existence of any legal dispute with his brother, Narendra maintains that the legal battle could have a substantial impact on the company and its minority shareholders in the future.

WCIL, a multi-modal, rail-focused logistics company, plans to raise around Rs 492 crore through its IPO on September 13.

Narendra Sethia, who runs a similar logistics firm called Eastern Carriers, also alleges that WCIL has failed to disclose an NCLT lawsuit against Rajendra and Kanishka Sethia, the company’s promoters, for alleged mismanagement of a promoter group entity, Aspective Commodeal Private Limited (ACPL).

The allegations raise concerns about transparency and potential risks for investors in WCIL’s IPO. It remains to be seen how the ongoing family feud will impact the IPO’s success and the future of the company.

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