TVS Supply Chain Solutions Shares Debut at 5% Premium; Should You Buy, Sell Or Hold?

TVS Supply Chain Solutions Listing BSE, NSE: TVS Supply Chain Solutions shares listed at a 4.72 per cent premium over the IPO price on NSE and BSE amid a flat domestic market. The share debuted at Rs 206.30 on the BSE, as compared to the issue price of Rs 197. TVS Supply Chain Solutions shares’ grey market premium gained 1.5 per cent on Wednesday, commanding a premium of Rs 3 over the upper end of the IPO price, implying a listing price of Rs 200 per share.

The TVS Supply Chain Solutions IPO, which opened for subscription from August 10 to August 14, registered an overall subscription of 2.8 times the equity on offer.

The public offer received bids for almost seven crore shares as against the total 2.5 crore shares on offer, according to provisional exchange data. That meant a moderate response compared with a host of IPOs this year.

The IPO comprised fresh issuance worth Rs 600 crore, and an offer for sale (OFS) worth up to Rs 280 crore by promoters and existing investors.

TVS Supply Chain Solutions, part of the TVS group of companies, offers a host of integrated supply chain and network solutions to businesses, international organisations, and government departments.

TVS SCS has grown organically and through strategic acquisitions to become a fully integrated global supply chain provider with over 18,000 dedicated employees, according to its website.

What Should Investors Do?

Anubhuti Mishra, Equity Research Analyst at Swastika Investmart Ltd., said “TVS Supply Chain Solutions made its debut on the stock markets today, listing at Rs 207 per share, a 5 per cent premium to its IPO price of Rs 197. The company’s IPO was subscribed to 2.85 times. Given that this IPO’s subscription was lower than that of some recent IPOs, the listing is respectable—even above expectations. 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.”

“We suggest investors book profits after listing at such a higher level. Those who still want to hold should maintain a stoploss at the IPO price,” she added.