TVS Supply Chain Solutions, a unit of TVS Mobility Group, made a tepid debut on the bourses on Wednesday, 23 August. The shares were listed at Rs 207.05 per share on the NSE, a premium of 5.1 per cent to the issue price of Rs 197 per share.
On the BSE, the shares were listed at a 4.72 per cent premium to the issue price of Rs 206.30 per share.
TVS Supply Chain's public issue was subscribed 2.85 times in total during 10 August to 14 August. The portion booked for retail investors was subscribed 7.89 times, the portion reserved for qualified institutional buyers’ (QIB) category 1.37 times, and the non-institutional investors’ (NII) portion was subscribed 2.44 times.
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The IPO consisted of a fresh issue of shares worth Rs 600 crore and an offer for sale (OFS) for shares worth Rs 280 crore.
The price band for the issue was fixed at Rs 187 to Rs 197 per share. The company raised Rs 880 crore at the upper end of the price band.
Ahead of the IPO opening, TVS Supply Chain Solutions had raised Rs 396 crore from 18 marquee anchor investors.
The company had reserved not less than 75 per cent of the shares in the IPO for qualified institutional buyers (QIB), not more than 15 per cent for NIIs, and not more than 10 per cent of the offer for retail investors.
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According to Anubhuti Mishra, Equity Research Analyst at Swastika Investmart Ltd, "given that this IPO's subscription was lower than that of some recent IPOs, the listing is respectable—even above expectations. Although TVS Supply Chain Solutions is a leading supply chain management company, it operates in a highly competitive industry and has reported losses in the past two years. Additionally, the valuation of the IPO was also very high."
"We suggest investors book profits after listing at such a higher level. Those who still want to hold should maintain a stop loss at the IPO price," she added.
Ahead of listing, TVS Supply Chain Solutions was commanding a grey market premium (GMP) of Rs 5 per share, indicating a lacklustre debut.
TVS Supply Chain Solutions commenced operations as a part of the TVS group under the name TVS Logistics before becoming a separate company in 2004. TVS SCS is a global supply chain company that provides end-to-end solutions to Fortune 500 companies across the world.
The company has two main components: integrated supply chain solutions and network solutions. Currently, TVS operates in almost 26 countries across Europe, Asia, and Australia.
In FY23, the company reported a profit of Rs 41.8 crore against a loss of Rs 45.8 crore in the previous fiscal year. It recorded revenue of Rs 10,235 crore for FY23.
