The Start of The Premier
TVS Supply Chain Solutions, an expert in end-to-end supply chain management services,
launched shares on the stock market on Monday, listing at a 4.7% gain over its initial public offering (IPO) price.
The share is being traded at a price that is 5.1% higher than its original issue price of Rs 197 per share.
At the end of the day, the initial public offering (IPO) of TVS Supply Chain, worth Rs 880 crore, was oversubscribed by 2.78 times.
The total number of bids received for the offer was 69.9 million shares, which is more than 2.5 times the 25.1 million shares on offer.
According to analysts, the response to the IPO was decent, as it was subscribed 2.85 times overall. However, compared to some recent IPOs, the subscription was lower, which may make the listing less appealing.
Image Source: ipocentral.in
TVS Supply Chain Solutions’ issue worth ₹ 880 crore was available for subscription from August 10 to August 14. The price range for the issue was between ₹ 187 and ₹ 197, and it included a fresh equity share sale of ₹ 600 crore along with an offer-for-sale (OFS) for 1.42 crore shares, valued at ₹ 280 crore.
Before the IPO began, TVS Supply Chain Solutions secured ₹ 396 crore from 18 prominent anchor investors. The company allocated at least 75% of the shares in the public offering to Qualified Institutional Buyers (QIB), a maximum of 15% to Non-Institutional Investors (NII),
and up to 10% to Retail Investors.
POV for Investors On Premier
After its listing, the stock experienced some profit booking, but throughout the day it remained within a certain range. It reached a high of Rs 208.50 and a low of Rs 199.
This movement within a range has left investors uncertain about whether they should hold onto the stock or sell it after its initial listing increase.
Image Source: The Hindu
Most analysts are advising investors to sell the stock due to its lackluster gains, pointing out that the company’s valuations are too high and that it is currently operating at a loss.
Nevertheless, a small number of analysts recommend holding onto the stock for the foreseeable future,
but only for investors with a high-risk tolerance and a long-term investment strategy.
Researchers Take On The Premier
Despite facing competition in its industry and reporting losses in the past two years, TVS Supply Chain Solutions had a respectable debut despite having lower subscription rates compared to recent IPOs, according to Anubhuti Mishra,
an Equity Research Analyst at Swastika Investment.
“We suggest investors book profits after listing at such a higher level. Those who still want to hold should maintain a stop loss at the IPO price,” she suggested, suggesting that she was cautious about the high valuations of the issue”.
TVS Supply Chain Solutions experienced a subdued listing in line with expectations,
attributed to its higher valuation in comparison to other listed peers,
moderate financial performance, and heightened competition in the industry. Dhruv Mudaraddi, a Research Analyst at StoxBox (formerly BP Equities), commented on these factors that contributed to the tepid listing.
Conclusion
TVS Supply Chain Solutions had a successful IPO, with the share price gaining 4.7% over its initial public offering (IPO) price and trading at a price 5.1% higher than its original issue price of Rs 197 per share.The IPO was oversubscribed by 2.78 times, indicating a decent response. However,
The subscription was lower compared to some recent IPOs, which may make the listing less appealing.
After the listing, the stock experienced some profit booking but remained within a certain range, leaving investors uncertain about whether to hold onto the stock or sell it. Most analysts advise selling the stock due to its lackluster gains, high valuations,
and current operating losses.
However, a small number of analysts recommend holding onto the stock for investors with a high-risk tolerance and a long-term investment strategy.
Despite facing competition in its industry and reporting losses in the past two years,
TVS Supply Chain Solutions had a respectable debut, according to Anubhuti Mishra, an Equity Research Analyst at Swastika Investment.
Also read: Aeroflex Industries, Vishnu Prakash R Punglia among 5 IPOs to track this week