TVS Supply Chain Solutions lists at 5% premium over issue price at Rs 207

TVS Supply Chain Solutions Limited, a prominent player in supply chain management service, is listed with a premium of 4.5% at Rs 206 per share on BSE. On the NSE, the stock debuted at Rs 207.05, indicating an increase of 5% compared to its initial public offering price of Rs 197 per share.

While writing this article the stock is trading at Rs 203.40 on the BSE. Its intraday highs and lows are Rs 208.50 and Rs 199 respectively. The current market capitalization of the company is Rs 8,897 crore.

TVS Supply Chain Solutions specialises in supply chain management services for international organizations, government departments, and large and medium-sized businesses. Their offerings are divided into two main segments; Integrated Supply Chain Solutions (ISCS), and Network Solutions.

Impressively, their global clientele included 72 companies from the ‘Fortune Global 500 2022’ list and 25 such Indian companies. It serves a diverse range of industries, including Automotive, Defence, Engineering, FMCG, Rail, Utilities, E-commerce, and Healthcare.

Let’s recapitulate the subscription history of the company. On the final day of the IPO window August 14, 2023, the IPO witnessed a subscription rate of 2.85 times. The public issue received an overwhelming response, with the retail category being subscribed 7.89 times, the QIB category achieving a subscription rate of 1.37 times, and the NII category reaching a subscription rate of 2.44 times.

The company had attracted Rs 396 crore from various anchor investors. The company has allocated 20.10 lakh equity shares at Rs 197 per share to anchor investors.

The price range for the IPO was set between Rs 187 and Rs 197, with a face value of Rs 1 per share and a lot size of 76 shares. The total size of the company’s IPO was Rs 880 Crore. The final share issue price of the company was fixed at Rs 197.

Following is the financial performance of the company: 

 The crucial question that arises in everyone’s mind is whether to hold onto the shares or book profits. Considering the current market conditions, investors who applied for listing gains are not entirely happy, and looking at the subscription from all categories of investors, it is not very impressive compared to other IPOs and can book profit from what it is generating. 

On the other hand, given the upcoming festive season, it may drive their revenue during the peak session of online shopping. Investors with a higher risk appetite may choose to hold the shares for the medium to long term, which could prove beneficial.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.