The maiden public issue of TVS Supply Chain Solutions has been bought 2.78 times by investors on August 14, the last day of bidding, which saw bids for 6.99 crore equity shares against an offer size of 2.51 crore shares.
Retail investors continued to provide a strong response to the offer buying 7.61 times the allotted quota. A decent support was witnessed from high networth individuals (HNIs), who have subscribed 2.35 times the portion set aside for them.
Qualified institutional buyers (QIB) bought 1.35 times the reserved portion, which is 75 percent in the IPO. At least a 90 percent subscription in the QIB category is a must for any IPO to sail through.
The TVS Mobility Group has reserved 15 percent portion of the IPO for HNIs and the remaining 10 percent for retail investors.
We saw 1.03 times subscription to the IPO till second day of bidding, August 11.
The logistic services provider intends to mop up Rs 880 crore via public issue at the upper price band. The offer comprises a fresh issuance of shares worth Rs 600 crore by the company and an offer for sale of Rs 280 crore by 22 selling shareholders.
The price band for the offer, which was opened on August 10, is Rs 187-197 per share.
The Chennai based company already raised Rs 396 crore via anchor book, a part of QIB, on August 9. Aurigin Master Fund, BNP Paribas Arbitrage, Sundaram Mutual Fund, SBI Life Insurance, Tata Mutual Fund, Winro Commercial, Societe Generale and Copthall Mauritius are among the investors in the anchor book.
Also read: TVS Supply Chain Solutions IPO: 10 key things to know before you buy
The fresh issue proceeds will be utilised mainly for clearing certain debts of Rs 525 crore and the remaining funds for general corporate purposes.
The basis of allotment of IPO shares will be finalised by August 18 and eligible investors will get shares in their demat accounts by August 22, while the refunds will be credited to bank accounts of unsuccessful investors by August 21.
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The much-awaited listing of TVS Supply Chain Solutions shares will take place on the BSE and NSE on August 24, as per the IPO schedule.
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