TVS Supply Chain Solutions IPO Closes, Subscribed By 2.78x; What GMP Hints For Listing?

TVS Mobility Group-backed subsidiary, TVS Supply Chain Solutions fully subscribed on the final day of its initial public offering (IPO). The issue received 2.78 times subscriptions on Monday with healthy demand across investor categories. The company planned to raise Rs 880 crore from the IPO. Its equity shares are proposed to be listed on exchanges BSE and NSE.

As per the data on NSE, cumulatively, the IPO received bids of 6,99,15,440 equity shares against its offered size of 2,51,22,289 shares, subscribing by 2.78 times.

Retail investors showed robust demand as the category subscribed by 7.61 times, while the non-institutional investors portion subscribed by 2.35 times, and lastly qualified institutional buyers portion subscribed by 1.35 times.

The company launched its IPO on August 10 and it closed on August 14. The IPO size comprised a fresh issue of Rs 600 crore and an offer for sale (OFS) of 14,213,198 equity shares aggregated to Rs 280 crore.

Of the total IPO size, 75% of the offer is reserved for qualified institutional buyers (QIBs), while 15% of the portion is kept for non-institutional investors (NII) and the rest of 10% is allotted to retail individual investors (RII).

After the IPO, the basis of allotment of equity shares is expected to take place on August 18, while refunds will be initiated on August 19, and shares to be credited to the demat account by August 22. As per Chittorgarh's report, the listing of TVS Supply Chain IPO is likely on August 23.

The status of allotment of equity shares can be viewed on BSE, NSE, registrar of the IPO (Link Intime), Demat account and bank account.

According to IPO Bazar, the grey market premium of TVS Supply IPO is at a meagre Rs 3 per share by the end of August 14. This suggests a premium listing of merely 1.52% to Rs 200 per share against the IPO price.

The price band is fixed at Rs 187 to Rs 197 per share. The equity shares have a face value of Re 1 each.

The book-running lead managers for the IPO are JM Financial, Axis Capital, J.P Morgan India, BNP Paribas, Nuvama Wealth Management, and Equirus Capital are acting. Link Intime India is the registrar of the issue.

The company plans to utilise the proceeds from fresh issue for repayment of all or a portion of certain outstanding borrowings availed by the company and its subsidiary TVS LI UK, and other general corporate purposes. However, TVS Supply Chains will not receive any proceeds from OFS as the funds will go to selling shareholders namely Omega TC Holdings, Tata Capital Financial Services, Sargunaraj Ravichandran, Andrew Jones, Ramalingam Shankar, and Ethirajan Balaji.

TVS Supply Chain Solutions is a leading integrated supply chain solutions provider in India. With substantial revenue and growth in Fiscal 2023, TVS SCS operates across over 25 countries. Serving 8778 global and 902 domestic clients in FY23, the company caters to diverse sectors such as automotive, industry, consumer products, technology, rail, utilities, and healthcare.

Post the listing, TVS Supply Chain peers would be TCI, Mahindra Logistics, Blue Dart Express, and Delhivery on exchanges.