The Initial Public Offering (IPO) of TVS Supply Chain Solutions is set to close on Monday (August) 14, after the issue opened for subscription on August 10.
As the situation stands, the IPO has been subscribed 1.29 times, with the retail portion taking the lead with subscription of 4.81 times.
The IPO that aims to raise Rs 880 crore has seen its prospects stagnant on the grey market over the past few days. According to topsharebrokers.com, the grey market premium of TVS Solutions IPO stood at Rs 13, which puts the estimated listing price at Rs 210 or a premium of 6.60 per cent.
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It may be noted that the price band of the IPO was fixed at Rs 187-197 per share and the minimum lot size for retail investors is 1, comprising 76 shares worth Rs 14,972. The maximum is 13 lots, which requires an investment of Rs 1,94,636.
The IPO’s basis of allotment will be finalised on August 18 and the shares will be credited to the demat account of eligible shareholders on August 22. The shares of the company will be listed on the BSE and NSE on August 23.
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Brokerage view on TVS Supply Chain Solutions IPO
At least two brokerages have given a ‘subscribe’ rating to the IPO.
Geojit Securities said in a research report that at the upper price band of Rs 197, TVS Supply Chain Solutions is available at a price-to-earnings of 209x (FY23), indicating aggressive pricing compared to peers.
The brokerage, however, noted a few factors in its favour such as a fragmented Indian logistics market, growth potential for organized players, post-GST logistics focus and outsourcing trends.
“TVS SCS’s asset-light approach, diverse global services, long-term contracts, and integrated capabilities position it well for growth. We assign a “Subscribe” rating for the issue on a short-to-medium-term basis,” said the brokerage.
Meanwhile, Canara Bank Securities also gave a ‘subscribe’ rating to the IPO, saying that the company has been looking to expand its customer base in new-age industries such as EV, healthcare tech and clean energy.
The brokerage cited that the company has witnessed trending revenue growth in both integrated supply chain solutions and network solutions. This has been backed by higher single-digit EBITDA margin and increasing ROCE and RONW.
While the brokerage also noted that the issue is available at a premium valuation compared to peers, it believes that TVS Supply Chain Solutions’ “capabilities in the logistics space with its ability to expand its network, with strong promoter banking and supportive government policies make its issue attractive”.
Canara Bank Securities recommended to subscribing the issue with focus on long term.
