TVS Supply Chain lists at 5% premium beating grey market expectations

• TVS Supply Chain lists with 5% gains at ₹207.05/share.
• The grey market premium has been falling for the last few days.
• The IPO was subscribed 2.7 times, with good interest from retail investors.
  

TVS Supply Chain has listed on the exchanges at ₹207.05/share versus an issue price of ₹197/share. The market cap of the company is ₹8,820.37 crore as per BSE. The grey market premium has been falling in the last few weeks and as of Wednesday, it has not been expecting any listing gains from the IPO.

The IPO was subscribed 2.7 times, with good interest from retail investors.

Speaking about the listing, Prashanth Tapse, Senior VP Research Analyst at Mehta Equities said, “With slightly lower demand, we anticipate a listing near 5% +/- the issue price of 197 per share. Our advice: consider selling allotted shares on listing day. Risk-takers might find value in TVS Supply Chain's asset-light strategy, global services, and post-GST growth potential for organised logistics.”

The non-institutional investor portion of the IPO was also subscribed 2.35 times while the Qualified Institutional Buyer (QIB) portion was subscribed 1.35 times, on Monday. Retail investor portion was subscribed 7.6 times the shares on offer.

The company fixed the price band for the IPO at ₹187-₹197 per equity share.

The offer was made through a book building process wherein not less than 75% was to be available for allocation on a proportionate basis to QIBs.



Source: BSE


Integrated supply chain solutions provider

The company is an integrated supply chain solutions provider, which calls itself a multinational based in India. Its business is divided into two segments — integrated supply chain solutions (ISCS); and network solutions.

Under ISCS segment, it sourcing and procurement, integrated transportation, logistics operation centres, in-plant logistics operations, finished goods, aftermarket fulfilment and supply chain consulting.

Its network solutions include global forwarding solutions which involves managing end-to-end freight forwarding and distribution across ocean, air and land, warehousing and at port storage and value added services, and time critical final mile solutions and more.

It provided these solutions to 8,788 global customers and 902 customers in FY23. Its customers span across numerous industries such as automotive, industrial, consumer, tech and tech infra, rail and utilities, and healthcare.

As of March 31, 2023, it has managed 22 million square feet of logistics warehouse space. Some of its customers include Daimler India, Sony India, Hyundai Motor, TVS Srichakra, TVS Motor, Panasonic Life Solutions, Hero MotoCorp, Modicare, Ashok Leyland, Yamaha Motor and Torrot Electric. In FY23, it carried 2,074 tons of air freight and 32,720 TEUs (twenty foot equivalent units) of sea freight in India.