Chennai-based TVS Supply Chain Solutions saw a lower-than-expected debut on August 23 and closed the day with 2 percent gains, partly backed by positive equity market conditions. The lower IPO subscription numbers, a high-priced issue compared to listed peers and high competition in the logistics industry may be key reasons for the muted listing, which was on expected lines.
The stock opened higher at Rs 207.05 on the NSE, up 5.1 percent over the issue price of Rs 197. The stock did not go below the issue price in the entire trading session.
It touched an intraday high of Rs 208.6 and a low of Rs 199, before closing the first session with 2.03 percent gains at Rs 201, while the closing price on the BSE was Rs 200.95.
TVS Supply Chain Solutions traded with volume 2.41 crore shares on the NSE, and 17.58 lakh shares on the BSE.
"Given that this IPO's subscription was lower than that of some recent IPOs, the listing is respectable. 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," Anubhuti Mishra, equity research analyst at Swastika Investmart said.
Also read: Ratnaveer Precision Engineering IPO opens on September 4, to raise Rs 165-166 crore
The TVS Mobility Group company raised Rs 880 crore via public issue, which was comprised of a fresh issue of Rs 600 crore, and an offer-for-sale (OFS) of Rs 280 crore by selling shareholders.
The price band for the offer was Rs 187-197 per share.
It is the largest logistics company among the listed entities, in terms of revenue, which stood at Rs 10,235 crore in FY23 against peers TCI Express (at Rs 3,783 crore), Mahindra Logistics (Rs 5,120 crore), Blue Dart Express (Rs 5,172 crore), and Delhivery (Rs 7,225 crore).
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