TVS Supply Chain Solutions IPO: Issue subscribed 2.78 times on last day of bidding; check latest GMP, other details

The Rs 880-crore initial public offering (IPO) of TVS Supply Chain Solutions Ltd saw a positive response from the investors. All three portions were fully booked on the final day of bidding, BSE data showed. Investors made bids for 6,99,00,544 equity shares, or 2.78 times, compared to the 2,51,22,289 equity shares offered. The retail investors category was subscribed 7.61 times, while the allocation for non-institutional bidders fetched 2.35 times of the total bids. The quota of qualified institutional bidders (QIBs) was subscribed 1.35 times. The IPO, which concluded today, opened for subscription August 10.

The company sold its shares in the range of Rs 187-197 apiece. A minimum bid consisted 76 equity shares and in multiples thereafter. The initial offering included a fresh equity share sale of Rs 600 crore.

Ahead of its IPO, TVS Supply Chain Solutions raised Rs 396 crore from 18 anchor investors by allocating 2.01 crore equity shares at an issue price of Rs 197 apiece. The marquee anchor investors included Authum Investment, Winro Commercial, Societe Generale, BNP Paribas Arbitrage, Copthall Mauritius, Aurigin Master Fund and various other mutual funds.

JM Financial, Axis Capital, JP Morgan India, BNP Paribas, Equirus Capital and Nuvama Wealth Management are the book-running lead managers to the issue, while Link Intime India has been appointed as the registrar. Shares of the company would be listed on both BSE and NSE. And, the listing date could be August 23.

TVS Supply became profitable in FY23 is encouraging for investors. The organization can expect continuous growth in the years to come thanks to excellent internal technologies. Additionally, the company would concentrate on Tier-II cities, which can boost market share and promote faster growth, said Arihant Capital Markets, with a 'Subscribe' rating for the issue.

Brokerages gave 'mixed' views on the issue. Some analysts recommended a 'Buy' call, citing its asset-light business model, strong parentage, and growth prospects. However, a few suggested to clearly 'Avoid' the issue due to its highly rich valuations, which looked more expensive compared to peers.

The company provides supply chain management services for international organizations, government departments, and large and medium-sized businesses. It offers its services in two segments namely- integrated supply chain solutions (ISCS) and network solutions (NS).

Latest grey market price (GMP)

In the grey market, Utkarsh SFB shares were last seen trading at just 1.52 per cent premium against its issue price of Rs 197 (upper price band), suggesting a muted Dalal Street debut.