TVS Supply Chain IPO opens for subscription till Aug 14. Check price band, GMP
TVS Supply Chain IPO: The initial offering comprises fresh issue of shares aggregating ₹600 crore and an offer for sale (OFS) of 1.42 crore equity shares.
The initial public offering (IPO) of TVS Supply Chain is open from subscription from Thursday. The IPO will be available for subscription till August 14.
The IPO comprises fresh issue of shares aggregating ₹600 crore and an offer for sale (OFS) of 1.42 crore equity shares. According to a circular on Bombay Stock Exchange website, the company has allocated 2.01 crore equity shares at ₹197 per share.
The company's anchor investors include Copthall Mauritius Investment Ltd, SBI Life Insurance Company, Tata Mutual Fund, Sundaram Mutual Fund and Franklin India Mutual Fund.
Price band
The price band of each share has been set at ₹187-197 and is open for public subscription from August 10-14.
Grey Market Premium
A grey market is basically an unregulated market to trade IPO shares before they get listed on the stock market. Even if an investor does not want to trade in the grey market, an idea of the GMP can be used for estimating the listing gain on the share.
According to the website topsharebrokers.com, TVS Supply Chain IPO has a GMP of ₹15 as of 2.21 pm. The listing price is estimated to be at ₹212 in the grey market.
“For the last three fiscals, TVS Supply Chain Solutions has reported an average EPS of Rs. - (0.35) and an average RoNW of - (2.07) percent. On the financial performance front also, for the last four fiscals, the company has reported losses in the books. The price-to-earnings ratio of 189x is significantly above the industry average of 43.03. At this high valuation, we advise subscribers to avoid TVS Supply Chain IPO”, Dr. Ravi Singh, market expert, said.
About the company
TVS Supply Chain Solutions is promoted by the erstwhile TVS Group and is now a part of TVS Mobility Group with presence in 25 countries. It has four business verticals including supply chain solutions, manufacturing, auto dealership, and aftermarket sales and service.
“The United Kingdom constitutes a major chunk of the business at ₹3,036 crore followed by India at ₹3,026 crore and ₹1,300 crore was contributed from Europe and ₹790 crore from the United States of America", the company's managing director Ravi Vishwanathan was quoted by PTI as saying.
JM Financial, Axis Capital, J P Morgan India, BNP Paribas, Nuvama Wealth Management, and Equirus Capital are the book-running lead managers to the IPO.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Hindustan Times. We advise investors to check with certified experts before taking any investment decisions.
