TVS Supply Chain Shares Debut With 5% Premium Over IPO Price

The company shares debuted at Rs 207.05 apiece on the National Stock Exchange (NSE) and Rs 206.30 apiece on the BSE, against the issue price of Rs 197 per share in the IPO.

The IPO, worth Rs 880 crore, was subscribed 2.78 times.

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TVS Supply Chain Solutions failed to impress during it’s debut in the stock market on Wednesday. The company started it’s first day of trading with the shares listed at Rs 207.05 apiece on the National Stock Exchange (NSE) and Rs 206.30 apiece on the BSE, against the issue price of Rs 197 per share in the IPO.

A day prior to the listing, the company’s shares were trading at a premium of Rs 5 per share in the grey market, reported Moneycontrol. The IPO worth Rs 880 crore debuted at a premium of about 5 per cent from the issue price and was subscribed 2.78 times. The IPO was listed in the range of Rs 187-197 per share from August 10 to 14. The IPO consisted of 2.51 crore equity shares, while bids were placed for 6.99 crore shares.

Amongst the bidders, retail investors took a liking to the IPO, with these investors subscribing to the issue 7.61 times the allotted quota. Experts stated the poor performance of the issue as a result of aggressive IPO pricing, reported losses in the past years, and a highly competitive industry, among other factors, the report noted.

Notably, the company reported a record growth in revenue at a compound annual growth rate (CAGR) of 21.5 per cent during the period FY21-FY23, touching Rs 10,235 crore in the previous fiscal year. The company reported a profit of Rs 41.8 crore in FY23, after two consecutive losses of Rs 45.8 crore in FY22 and Rs 76.34 crore in FY21. 

The company began as a part of the TVS group under the name TVS Logistics before becoming a separate company in 2004. With clients in 26 countries across Europe, Asia, and Australia, the company today, known as TVS Supply Chain Solutions or TVS SCS, is a global supply chain company providing end-to-end solutions to Fortune 500 companies worldwide. The company’s business is divided into two main categories, namely supply chain solutions and network solutions. 

(Disclaimer: This report is meant only for information purposes. It should not be treated as a stock recommendation. Reader discretion advised.)