TVS Supply Chain Solutions IPO opens today: All you need to know

TVS Supply Chain Solutions IPO, TVS Supply Chain Solutions IPO opening date: TVS Supply Chain Solutions is set to launch its initial public offer (IPO) on Thursday (August 10).  TVS Supply Chain Solutions, which provides supply chain management services to a number of government departments, international organisations and medium-sized businesses, includes fresh issuance of shares worth up to Rs 600 crore. 

Here are some of the key things you should be aware of TVS Supply Chain Solutions IPO:  

Issue price and lot size

The chain supply company has fixed a price band of Rs 187-197 per share for the IPO. The IPO consists of fresh issuance of equity shares worth Rs 600 crore, while an offer for sale (OFS) of up to Rs 280 crore worth of shares is available for promotors.  

Important dates for IPO 

The bidding for anchor investors opened today (Wednesday, August 9), and bid offers for the rest will open on August 10 (Thursday) and conclude on August 14. 

Bid lot and minimum investment

At Rs 197 price land, the bid lot for the IPO is 76, while the minimum investment for the same is Rs 14,972.  

IPO size 

The IPO is expected to fetch Rs 880 crore for the company. 

Offer for sale

The company is offering up to 14,213,198 equity shares of face value of Rs 1 each. 

Purpose of IPO

The company says the purpose of launching the IPO is the prepayment or repayment of Rs 525 crore of all or a portion of certain outstanding borrowings availed by its company and subsidiary, TVS LI UK.

Company promoters

TVS Mobility Private Limited, T.S. Rajam Rubbers Private Limited, and Dhinrama Mobility Solution Private Limited and Ramachandran Dinesh are the promoters of the company.

Book Runner and Lead Manager

The book runner and lead amanger for the IPO are Axis Capital, JM Financial, JP Morgan, Nuvama & Equius capital, and BNP Paribas.

About TVS Supply Chain Solutions

Earlier, TVS Group was the promoter of the company, now part of TVS Mobility Group

It is the country's largest and fastest growing integrated supply chain solutions provider by FY23 revenue

Provides inventory management, purchasing, demand planning, warehousing and transportation services to customers

The company's business in expanded to 26 countries

It served 8,788 customers in FY23

Ashok Leyland, Daimler India, Hyundai Motor, Sony India on the list of customers

What Analysts Say

Brokerage firm Swastika gave an 'avoid' rating to the IPO.

The company says that the valuation of the IPO is four time more than the industry average.

"However, there are some concerns with the company. It has a large exposure to the international market, which could be a risk if there is a slowdown in global trade. The company is also operating in a highly competitive industry, and it has reported losses in the past two years. 

"Additionally, the valuation of the IPO is very high, at a price-to-earnings ratio of 189x, which is significantly above the industry average of 43.03. Overall, we believe that the risks outweigh the potential rewards for this IPO. We recommend staying away from it for now."

On the other hand, brokerage firm Hensex recommends a subscribe rating to the IPO.