TVS Supply Chain IPO 2.78 times on the last day of the offer

• Retail investor portion of the IPO was subscribed 7.6 times over the shares on offer.
• The institutional investor portion was also fully subscribed on the last day of the IPO.
• The net proceeds from the fresh issue will be used for prepayment or repayment of outstanding borrowings, and towards general corporate purposes.

The TVS Supply Chain IPO was subscribed 2.7 times on the last day of the issue, with good interest from retail investors.

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



About the company

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.

Financials & risk factors

The company’s revenues have been consistently growing in the last three years, and in the recently concluded financial years, it has been able to post profits after reducing its losses over two years.

Elucidating its risks, the company said that in the last three years, around 73% of its revenue was denominated in foreign currencies, along with an average of 73.8% of its borrowings. It is exposed to exchange rate fluctuations, which can impact its operations.

It’s subject to multiple and complex legal and regulatory requirements as its operations are spread across 26 countries. Failure to comply with the laws and regulations can adversely impact its business.

Freight, clearing, forwarding and handling charges, and manpower expenses constitute a significant portion of our operating expenses and any increase due to any internal or external factors may adversely affect our business, financial condition, results of operations and cash flows, the company said in its RHP.