IPO listed on 23 Aug'23
TVS Supply Chain Solutions Ltd
Minimum Investment
₹ 14,972 / 76 shares
Grey market premium
₹ 22 (11% premium)
Issue price
₹ 197
Listing price
₹ 207
Listing day %
2%
Listing on
August 23, 2023
Our Verdict:
Avoid
- Although the company has showcased impressive growth with a sharp turnaround in financials in FY23, its track record is not convincing enough for long-term investment. Hence, we recommend assessing the company's performance over the next couple of quarters before making any investment commitments.
- Even from a valuation standpoint, the IPO pricing seems aggressive, suggesting the near-term benefits are already factored into the price. In addition, the grey market premium (GMP) for the issue, often used as a gauge for investor sentiment, indicates a tepid listing.
About the company
Founded in
16 Nov'04
Managing director
Ravi Viswanathan
- Promoted by the renowned TVS Group, TVS SCS stands as one of India's leading and most rapidly expanding integrated supply chain logistics providers based on revenue growth.
- The company boasts an extensive global network and capabilities throughout the value chain, along with cross deployment abilities. They cater to a diverse range of sectors including automotive, industrial, consumer products, technology and tech infrastructure, rail and utilities, and healthcare.
STRENGTHS
- Sound Financial Metrics: TVS SCS witnessed a revenue growth of 21.5% CAGR from Rs 6,934 crore in FY21 to Rs 10,235 crore in FY23. Similarly, EBITDA grew from Rs 387 crore to Rs 684 crore during this period, with a net profit of Rs 41.8 crore in FY23.
- Proven Acquisition Growth: The company has consistently demonstrated its ability to grow through strategic acquisitions, having successfully integrated over 20 purchases in the past 16 years across Europe, UK, USA, and Asia Pacific, including India.
- Diversified Revenue Streams: The company enjoys diverse revenue sources, servicing a broad clientele of 8,788 global customers, distributed across 26 countries and spanning various sectors.
RISK FACTORS
- High Valuations: If we attribute FY23 earnings to post-IPO fully diluted paid-up equity capital, then the IPO commands a P/E multiple of 210x, suggesting the near-term benefits are already factored into the price.
- Subpar Margins & Returns: For FY23, EBITDA and PAT margins stood at 6.7% and 0.4% respectively, while the company posted Return on Equity/ Return on Capital Employed of 5.8%/ 6.1%.
- Currency & Compliance Risks: Approximately 73% of the company's revenue stems from international operations, making it susceptible to currency exchange fluctuations and the need to adhere to local regulations.
Issue details
Issue type
Mainstream
Issue size
₹ 880 crore
Fresh Issue
₹ 600 crore
OFS
₹ 280 crore
Price range
₹ 187 - 197
Lot size
76 shares
Issue Objective
Net proceeds from the fresh issue will be utilised towards:
- Prepayment or repayment of certain outstanding borrowings availed by the company and its subsidiaries; and
- General corporate purposes
Dates
Bidding open
10 Aug'23
Bidding close
14 Aug'23
Allotment date
18 Aug'23
Refund date
21 Aug'23
Listing
23 Aug'23
IPO Reservations
Qualified institutional buyers
>75%
Non-institutional investors
<15%
Retail individual investors
<10%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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