TVS Supply Chain IPO: Subscription, Price Band, GMP, and Company Overview

Rajesh
0

The eagerly anticipated initial public offering (IPO) of TVS Supply Chain Solutions has opened for subscription and will remain available until August 14. This IPO comprises a fresh issue of shares worth ₹600 crore and an offer for sale (OFS) of 1.42 crore equity shares. With a price band set between ₹187 and ₹197 per share, investors are closely watching the grey market premium (GMP) to gauge potential listing gains.

TVS Supply Chain IPO
TVS Supply Chain IPO:
 Subscription, Price Band, GMP, and Company Overview

Price Band and Subscription Dates

The pricing for TVS Supply Chain IPO is set at a reasonable range of ₹187 to ₹197 per share. The subscription period began on August 10 and will conclude on August 14. This range provides investors with the flexibility to invest within their comfort zone, making the IPO accessible to a wider range of potential stakeholders.

Grey Market Premium (GMP)

The grey market, a non-regulated market for trading IPO shares before they are officially listed, often provides insight into potential listing gains. As of 2:21 pm, reports suggest that TVS Supply Chain IPO has a GMP of ₹15. This estimate gives investors an idea of the possible listing price, which is projected to be around ₹212 in the grey market. However, it's important to note that GMP is subject to change based on market dynamics.

Company Overview

TVS Supply Chain Solutions, a part of the TVS Mobility Group and promoted by the esteemed TVS Group, has a global presence across 25 countries. The company operates across four main business verticals: supply chain solutions, manufacturing, auto dealership, and aftermarket sales and service. Its diverse portfolio positions it as a multifaceted player in the mobility and supply chain sectors.

Financial Performance and Expert Opinion

In terms of financial performance, TVS Supply Chain Solutions has faced challenges in recent years. Over the last three fiscal years, the company reported an average earnings per share (EPS) of Rs. -0.35 and an average return on net worth (RoNW) of -2.07%. Additionally, the company reported losses in its books for the last four fiscal years. With a price-to-earnings (P/E) ratio of 189x, significantly higher than the industry average of 43.03, some experts, including Dr. Ravi Singh, advise caution and recommend potential subscribers to approach the IPO with prudence.

Global Business Presence

TVS Supply Chain Solutions boasts a substantial international presence. The United Kingdom contributes significantly to its business with ₹3,036 crore, closely followed by India at ₹3,026 crore. Europe and the United States of America contribute ₹1,300 crore and ₹790 crore, respectively, highlighting the company's diversified global operations.

Conclusion

As TVS Supply Chain Solutions embarks on its IPO journey, investors have the opportunity to participate in a company backed by the TVS Group and operating in diverse verticals across the mobility and supply chain sectors. While the GMP and potential listing price offer insights, it's crucial for investors to carefully evaluate the company's financial performance, expert opinions, and market conditions before making investment decisions. The IPO is led by reputable book-running lead managers such as JM Financial, Axis Capital, J P Morgan India, BNP Paribas, Nuvama Wealth Management, and Equirus Capital, underscoring the interest and credibility surrounding the offering.

Read Also : TVS Motor Share Price Hits New 52-Week High: Buy, Sell, or Hold?

Post a Comment

0Comments
Post a Comment (0)