tvs-supply-chain-ipo
TVS is one of the biggest names in the auto industry and the TVS Group is now promoting a new company under its flagship brand name. TVS Supply Chain Solutions Limited, a prominent name in the supply chain industry catering to diverse sectors, is now coming out with a new IPO on 10th August 2023.
TVS Supply Chain Solutions Limited IPO will open for subscription from 10th August 2023 to 14th August 2023.
Here are all the important details of TVS Supply Chain Solutions Limited, including investment price band, allotment date, GMP, benefits, risks of investing in this IPO, and more.
The key details of TVS Supply Chain Solutions Limited are as under.
The size of the IPO and different categories of the issue are:
| Category | Details |
| IPO Opening Date | 10th August 2023 |
| IPO Closing Date | 14th August 2023 |
| Listing | NSE, BSE |
| Issue Type | Book Built Issue IPO |
| Face Value of shares | Re. 10 per share |
| IPO Price Band | Rs. 187 – Rs. 197 per share |
| IPO Size | Rs. 880 crores |
| Offer for Sale | Rs. 280 crores |
| Fresh Issue | Rs. 600 crores |
The important dates for TVS Supply Chain Solutions Limited IPO are highlighted below:
| Event | Date |
| Opening date | 10th August 2023 |
| Closing Date | 14th August 2023 |
| Allotment date | 18th August 2023 |
| Refund Date | 21st August 2023 |
| Share Credit Date | 22nd August 2023 |
| Listing Date | 23rd August 2023 |
Investors can subscribe to TVS Supply Chain Solutions Limited shares in pre-defined lots. The details of the lot sizes for this IPO are mentioned below:
| Category | Details |
| Investments in lots | Minimum – 1 lot Maximum – 13 lots |
| Investment amount | Minimum – Rs. 14,212 – 14,972 Maximum – Rs. 1,94,636 |
| Shares | Minimum – 76 Maximum – 988 |
Here’s the summary of reservation for different applicant categories in this IPO:
| Category of Investor | Reservation Percentage |
| Retail Individual Investors | 10% |
| QIB (Qualified Institutional Buyers) | 75% |
| NII (Non-Institutional Bidders) | 15% |
This IPO is a combination of Fresh Issue and an Offer for Sale. The objectives of this IPO are mentioned below.
TVS Supply Chain Solutions specialises in delivering comprehensive supply chain management services to international organisations, government entities, and medium to large businesses. The company operates through two main segments, namely, Integrated Supply Chain Solutions (ISCS) and Network Solutions (NS).
TVS Supply Chain Solutions offers a comprehensive range of services in its ISCS segment, including procurement, integrated transportation, logistics operations, in-plant logistics, aftermarket fulfilment, finished goods management, and supply chain consulting. In the NS segment, the company provides Global Forwarding Solutions for end-to-end freight distribution across air, ocean, and land, along with warehousing, value-added services, and Time-Critical Final Mile Solutions involving closed-loop logistics, spares handling, engineering support, and courier management.
In the fiscal year 2022 for the nine months ending on December 31, 2022, TVS SCS effectively served more than 10,531 and 8,115 customers, respectively, on a global scale. Within the same periods, the company catered to over 1,044 and 733 customers with its supply chain solutions.
TVS SCS takes pride in its diverse client portfolio across industries like Automotive, Defence, Engineering, FMCG, Rail, Utilities, e-commerce, and Healthcare. Noteworthy clients include Sony India Private Limited, Hyundai Motor India Limited, Johnson Controls-Hitachi Air Conditioning India Limited, Ashok Leyland Limited, TVS Motor Company Limited, and Diebold Nixdorf, among others.
TVS Supply Chain Solutions Limited’s financials are given in the table below:
| Year | Total Assets (Rs. in cr) | Total Revenue (Rs. in cr) | Profit after Tax (Rs. in cr) | Basic EPS | Return on Net Worth |
| Mar-2023 | 6,211 | 10,235 | 41 | Rs.1.04 | 5.50% |
| Mar-2022 | 5,790 | 9,250 | (46) | (Rs.1.44) | (6.88%) |
| Mar-2021 | 4,990 | 6,934 | (76) | (Rs.2.26) | (15.15%) |
(Source: RHP)
Some of the key strengths of TVS Supply Chain Solutions Limited IPO that investors can take note of are
| Category | Details |
| Business model | The company has robust in-house technology and is a leader in the end-to-end solutions enabled by domain expertise, global network, and knowledge base.TVS Supply Chain Solutions possesses a crucial foothold within India’s swiftly expanding and diverse third-party logistics market. The company also boasts a sustained and reliable history of effectively integrating acquisitions to bolster its capabilities and drive customer acquisition. |
| Other merits | TVS Supply Chain Solutions benefits from a robust parent company and a management team equipped with diverse industry expertise. The company has nurtured enduring customer relationships across a range of appealing and varied sectors. |
Here are some of the risks that investors of TVS Supply Chain Solutions Limited IPO should know:
| Category | Details |
| Business viability and profitability | TVS Supply Chain Solutions relies significantly on external network partners and third-party entities for their warehousing and transportation requirements.An escalation in operating costs for these partners could impact the company.Delays or payment defaults from customers, or shortened credit periods from third-party service providers, could pose challenges.The company experienced losses in the fiscal years 2021 and 2022, and similar losses in the future could have unfavourable effects on its business, financial health, and cash flow. |
| Other concerns | Evolving patterns in the outsourcing of supply chain management functions, both internationally and in India, could lead to decreased demand for the services provided by TVS Supply Chain Solutions.The company could face challenges if it doesn’t effectively compete or adapt to changing customer needs within the fiercely competitive and fragmented industry. |
As of August 8th, 2023, the grey market premium for the shares of TVS Supply Chain Solutions Limited IPO is Rs. 30 as per market observers. This means the shares are expected to list at a premium of Rs. 30 per share over the listing cap price of Rs. 197.
The brand name of the TVS Group commands a lot of respect in the auto industry and TVS Supply Chain Solutions offers diverse business segments to a variety of sectors. The profits after tax of the company saw a dip in FY 22 and FY 21, but they recovered the same in FY 23. The opportunity to be part of the TVS Group from the IPO stage is seen after a gap of three decades which can be favourable for the company. However, it is advisable that investors focus on the company’s fundamentals and performance as well as the growth prospects of the business before investing in it.
Investors can invest in this IPO through the Fisdom app.
The IPO size of TVS Supply Chain Solutions Limited is Rs. 880 crores.
The business segments of TVS Supply Chain Solutions Limited include Integrated supply chain solutions (ISCS) and Network Solutions (NS)
The revenue from operations of TVS Supply Chain Solutions for FY 23 is Rs. 10,235 crores while that of its listed peers like Mahindra Logistics Limited is Rs. 5,128 crores, TCI Express Limited is Rs. 1241 crores, and Blue Dart Express Limited is Rs. 5172 crores.
The lot size of the TVS Supply Chain Solutions Limited IPO is 76 shares.
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