TVS Supply Chain IPO booked 23% on day 1 so far, retail portion fully subscribed
TVS Supply Chain Solutions provides supply chain management services for international organizations, government departments, and large and medium-sized businesses
- Aug 10, 2023,
- Updated Aug 10, 2023 2:02 PM IST
The Rs 880-crore initial public offering (IPO) of Concord Biotech saw a mild response from the investors during the first day of the bidding process. The three-day issue opened on Thursday, August 10, and can be subscribed till Monday, August 14.
TVS Supply Chain Solutions is selling its shares in the range of Rs 187-197 apiece during the bidding process and investors can make a bid of a minimum of 76 equity shares and its multiples thereafter. The issue includes a fresh equity shares sale of Rs 600 crore, while a host of companies will offload shares worth Rs 280 crore.
According to the data, the investors made bids for 57,09,804 equity shares, or 23 per cent, compared to the 2,51,22,289 equity shares offered for the subscription by 1.30 pm on Thursday, August 10, 2023.
The portion of retail investors was subscribed 1.12 times, while the allocation for non-institutional bidders fetched 0.08 per cent bids. The quota of qualified institutional bidders (QIBs) was not even off the mark as of the same time.
TVS Supply Chain Solutions provides supply chain management services for international organizations, government departments, and large and medium-sized businesses. It offers its services in two segments namely- integrated supply chain solutions (ISCS) and network solutions (NS).
Brokerage firms have a mixed view on the issue. Select analysts have suggested a 'buy' for the issue citing its asset-light business model, strong parentage, and growth prospects. However, a few have suggested to clearly 'avoid' the issue citing its highly rich valuations, which look more expensive compared to peers.
The issue is richly valued, as it is higher than other industry players such as TCI Express, Delhivery, and Mahindra Logistics. Hence, we recommend an “Avoid” rating on the issue and would reconsider the company following sustained improvement in financial metrics (especially margin expansion) and reasonable valuation, said Stoxbox, formerly BP Equities, with a 'avoid' rating.
Ahead of its IPO, TVS Supply Chain Solutions raised Rs 396 crore from 18 anchor investors by allocating 2.01 crore equity shares at an issue price of Rs 197 apiece, said a BSE circular. The marquee anchor investors included Authum Investment, Winro Commercial, Societe Generale, BNP Paribas Arbitrage, Copthall Mauritius, Aurigin Master Fund and various mutual funds.
The company’s revenue from operations showed steady growth, with a CAGR of 10.66 per cent in FY23 respectively. It has developed long term relationships with a number of clients; however, it has served a total of 8,788 customers during FY23, said Hensex Securities, suggesting that medium-to-high risk investors may apply for the issue, said Hensex Securities, with a 'subscribe with caution' tag.
JM Financial, Axis Capital, JP Morgan India, BNP Paribas, Equirus Capital and Nuvama Wealth Management are the book-running lead managers to the issue, while Link Intime India has been appointed as the registrar to the issue. Shares of the company will be listed on both BSE and NSE.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)
Also Watch: Hot stocks on August 10, 2023: Berger Paints, Suzlon Energy, ION Exchange, IRCON and more
The Rs 880-crore initial public offering (IPO) of Concord Biotech saw a mild response from the investors during the first day of the bidding process. The three-day issue opened on Thursday, August 10, and can be subscribed till Monday, August 14.
TVS Supply Chain Solutions is selling its shares in the range of Rs 187-197 apiece during the bidding process and investors can make a bid of a minimum of 76 equity shares and its multiples thereafter. The issue includes a fresh equity shares sale of Rs 600 crore, while a host of companies will offload shares worth Rs 280 crore.
According to the data, the investors made bids for 57,09,804 equity shares, or 23 per cent, compared to the 2,51,22,289 equity shares offered for the subscription by 1.30 pm on Thursday, August 10, 2023.
The portion of retail investors was subscribed 1.12 times, while the allocation for non-institutional bidders fetched 0.08 per cent bids. The quota of qualified institutional bidders (QIBs) was not even off the mark as of the same time.
TVS Supply Chain Solutions provides supply chain management services for international organizations, government departments, and large and medium-sized businesses. It offers its services in two segments namely- integrated supply chain solutions (ISCS) and network solutions (NS).
Brokerage firms have a mixed view on the issue. Select analysts have suggested a 'buy' for the issue citing its asset-light business model, strong parentage, and growth prospects. However, a few have suggested to clearly 'avoid' the issue citing its highly rich valuations, which look more expensive compared to peers.
The issue is richly valued, as it is higher than other industry players such as TCI Express, Delhivery, and Mahindra Logistics. Hence, we recommend an “Avoid” rating on the issue and would reconsider the company following sustained improvement in financial metrics (especially margin expansion) and reasonable valuation, said Stoxbox, formerly BP Equities, with a 'avoid' rating.
Ahead of its IPO, TVS Supply Chain Solutions raised Rs 396 crore from 18 anchor investors by allocating 2.01 crore equity shares at an issue price of Rs 197 apiece, said a BSE circular. The marquee anchor investors included Authum Investment, Winro Commercial, Societe Generale, BNP Paribas Arbitrage, Copthall Mauritius, Aurigin Master Fund and various mutual funds.
The company’s revenue from operations showed steady growth, with a CAGR of 10.66 per cent in FY23 respectively. It has developed long term relationships with a number of clients; however, it has served a total of 8,788 customers during FY23, said Hensex Securities, suggesting that medium-to-high risk investors may apply for the issue, said Hensex Securities, with a 'subscribe with caution' tag.
JM Financial, Axis Capital, JP Morgan India, BNP Paribas, Equirus Capital and Nuvama Wealth Management are the book-running lead managers to the issue, while Link Intime India has been appointed as the registrar to the issue. Shares of the company will be listed on both BSE and NSE.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)
Also Watch: Hot stocks on August 10, 2023: Berger Paints, Suzlon Energy, ION Exchange, IRCON and more