TVS Supply Chain Solutions Listing: Stock Trades In Red After Debuting At 5% Premium: Buy Or Sell?

TVS Mobility Group-backed logistic subsidiary, TVS Supply Chain Solutions made its market debut on Wednesday. The share price is listed at a 5% premium on BSE and NSE compared to its IPO's issue price. However, the stock erased its early gains and is currently trading in red on exchanges. TVS Supply Chain's Rs 880 crore worth of IPO oversubscribed by 2.78x with healthy demand across investor categories.

On BSE, the stock is listed at Rs 206.30 apiece, which is 4.72% premium compared to its IPO issue price of Rs 197 apiece. However, the stock traded at Rs 200.20 apiece, at the time of writing, which was up by 1.62% from the IPO price, but lower by 2.96% against the listing price.

The stock is trading in the list of ''B'' Group Securities on BSE.

Meanwhile, on NSE, the stock is listed at a 5.10% premium at Rs 207.05 apiece. However, the stock retreated and traded at Rs 200.60 apiece on the exchange, up by 1.82% from the IPO price, but down by 3.12% from the listing price.

On exchanges, TVS Supply Chain's competitors are TCI, Mahindra Logistics, Blue Dart Express, and Delhivery.

The company launched its IPO on August 10 and it closed on August 14. On the final day, the IPO subscribed 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 price band of the IPO was fixed at Rs 187 to Rs 197 per share.

The company plans to utilise the proceeds from fresh issues 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.

Should you buy or sell TVS Supply Chain Solutions shares?

According to Anubhuti Mishra, Equity Research Analyst at Swastika Investment, although TVS Supply Chain Solutions is a leading supply chain management company, it operates in a highly competitive industry and has reported losses in the past two years. Additionally, the valuation of the IPO was also very high. All of these factors could impact its listing.

Therefore, Mishra added, "we would suggest investors to book profits after listing."

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.

Disclaimer:

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