Shares of TVS Supply Chain Solutions made a muted debut on the stock exchanges on Wednesday. The shares listed at a premium of over 5% at Rs 207.05 per piece on NSE, against the initial public offering (IPO) price of Rs 197 per share.
Whereas, on BSE, the TVS Supply Chain Solutions stock was listed at Rs 206.30 per piece, a premium of 4.72%. The IPO had witnessed a decent subscription from August 10 to August 14 and was subscribed 2.85 times in total.
Also read: Torrent Pharma Enters Fray To Acquire Hamied Family’s Stake In Cipla: Report
Ahead of the listing, the company's shares traded at a premium of just Rs 4 in the unlisted market. However, the subscription was lower than some recent IPOs, and therefore the listing might not be that attractive
“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. All of these factors could impact its listing,” said Anubhuti Mishra, Equity Research Analyst at Swastika Investmart Ltd.
TVS Supply Chain IPO consisted of a fresh issue of shares worth ₹600 crore and an offer for sale of shares worth ₹280 crore. It had earlier raised ₹396 crore from 18 marquee anchor investors ahead of the IPO opening.
Also read: India’s First Quarter GDP Likely To Surpass RBI’s Projection Rate: ICRA
The qualified institutional buyers (QIB) portion was subscribed 1.35 times, while the non-institutional investor (NII) segment was subscribed 2.35 times. The retail individual investor category saw 7.61 times bids. The issue was sold in the price band of Rs 187-197 per share.
JM Financial, Axis Capital, J P Morgan India, BNP Paribas, Edelweiss Financial Services, and Equirus Capital acted as the book-running lead managers to the issue.