TVS Supply Chain Solutions IPO

TVS Supply Chain Solutions Limited is one of India’s biggest and fastest growing entire supply chain solutions providers in terms of revenues in Fiscal 2021, As per the RedSeer Report. TVS Supply Chain Solutions IPO will hit the stock market in 10 August 2023.

About TVS Supply Chain

As per RedSeer Report, TVS Supply Chain Solutions Limited is an India-based multinational corporation that pioneered the growth of the supply chain solutions sector in India.

They were once part of the TVS Group, which is now part of the TVS Mobility Group, which has 4 corporate verticals: supply chain solutions manufacturing, car dealership, and aftermarket sales and service (Source: RedSeer Report).

They’ve been using bespoke tech-enabled solutions to handle vast and complicated supply chains throughout numerous industries in India and chosen global markets for the past 15 years.

They have increased tremendously throughout this time, with total revenue of 69,996.91 million in Fiscal 2021. They are the only Indian supply chain logistics solution supplier with global capabilities.

Solutions

Their solutions can be classified into two categories: integrated supply chain solutions as well as network solutions, which cover the complete value chain from sourcing to consumption. Sourcing and procurement, seamless transportation, logistics operation centres, in-plant logistics operations, completed goods, aftermarket fulfilment, and supply chain consulting are among the ISCS segment’s competencies.

Global routing services, which include end-to-end freight forwarding and distribution throughout ocean, air, and land, warehousing and at port containers, and integrated solutions services, and time critical final mile strategies, which include closed loop transportation and support, such as spares logistics, break-fix, refurbishment, and technology support, as well as courier and shipment management, are among the NS segment’s functionality.

Their technology, along with their domain experience, is unrivalled.

Clients

Customers come from a variety of industries, including automotive, industrial, consumer, technology and technology infrastructure, rail and utilities, and healthcare. We’ve built long-term connections with several of their clients, which they believe has helped them maintain income and profitability.

Their clients are Mahindra & Mahindra Limited, Sony India Private Limited, Hyundai Motor India Limited, Johnson Controls-Hitachi Air Conditioning India Limited, Ashok Leyland Limited, TVS Motor Company Limited, Diebold Nixdorf, TVS Srichakra Limited, Lexmark International Technology Sarl, VARTA Microbattery Pte Ltd, Daimler India Commercial Vehicles Private Limited, Hero MotoCorp Limited, Modicare Limited, Panasonic Life Solutions India Private Limited, Dennis Eagle Limited and Electricity North West Limited.

TVS Supply Chain Solutions IPO

TVS Supply Chain Solutions Limited, headquartered in Chennai has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 2,000 Crore & 59,477,497 equity shares on 11 February 2022.

The offer includes a fresh issue of 2,000 Crore and there is offer for sale (OFS) of 59,477,497 equity shares by the promoters mentioned in the DRHP. They are looking for a Pre-IPO placement of 400 crore in this issue.

They got approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
	30-Sep-21	31-Mar-21	31-Mar-20	31-Mar-19
Total Assets	4,926.38	4,990.06	5,462.91	4,679.26
Total Revenue	4,271.34	6,999.69	6,792.76	6,833.76
Profit After Tax	(57.79)	(73.90)	(248.03)	(15.43)

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	(0.42)	(0.42)	3
Financial Year 2020	(6.00)	(6.00)	2
Financial Year 2019	(2.26)	(2.26)	1
Weighted Average	(3.2)	(3.2)
30 Sep. 2021	(1.81)	(1.81)

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

They feel that the following are some of the qualitative aspects that go into determining the Offer Price:

1. In India’s fast-growing and diversified third-party logistics business, scalability is critical.
2. Domain expertise, a worldwide network, and an information base allow the leader in end-to-end solutions.
3. In-house technology difference that is strong.
4. Integrating of mergers to support capabilities and client acquisition has a long and consistent track record.
5. Encirclement creates long-term consumer relationships in a variety of interesting sectors.
6. Multiple drivers of sustainable growth in a resilient business strategy.
7. Strong pedigree, with a leadership team that has worked in a variety of industries.

TVS Supply Chain Solutions Peer Comparison

S. No.	Face Value	Company Name	PE
1	2	TCI Express Limited	40.49
2	10	Mahindra Logistics Limited	35.29
3	10	Blue Dart Express Limited	49.16

TVS Supply Chain Solutions IPO Details

IPO Opening Date	10 August 2023
IPO Closing Date	14 August 2023
Issue Type	Book Building
Face Value	1 per share
IPO Price	187 to 197 per equity share
Market Lot	76
Min Amount	14982
Listing At	BSE, NSE
Issue Size	880 Crore
Fresh Issue	6,00 Crore
Offer for Sale	14,213,198 Equity Shares

TVS Supply Chain Solutions IPO Date

TVS Supply Chain IPO opening date is 1o August 2023, and the closing date is 14 August 2023. The TVS Supply Chain issue may list 0n 24 August 2023.

IPO Opening Date	10 August 2023
IPO Closing Date	14 August 2023
Basis of Allotment Date	22 August 2023
Initiation of Refunds	22 August 2023
Credit of Shares to Demat Account	23 August 2023
IPO Listing Date	24 August 2023

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	75	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	10	Minimum 1 lot based on availability

TVS Supply Chain IPO Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of TVS Supply Chain IPO.

TVS Supply Chain Solutions IPO GMP

TVS Supply Chain IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
08 August 2023	0
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Check Out the GMP of all Other IPOs

IPO Grey Market Premium

TVS Supply Chain IPO Review

TVS Supply Chain IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of TVS Supply Chain Solutions IPO is good or bad.

TVS Supply Chain IPO Risk

1. In some elements of their operations, they rely on network partners and other third parties.
2. In their company operations, they rely heavily on their technology infrastructure and software package.
3. They lost money in fiscal years 2019, 2020, and 2021, as well as the six months ending September 30, 2021, and any future losses could hurt their business.
4. They are vulnerable to variations in foreign currency exchange rates, and these fluctuations have and will continue to have an impact on their operating results.
5. They often get into long-term agreements with clients.
6. They have made significant acquisitions in the past and may do so again in the future, which could be challenging to integrate and manage.

Other Threats

1. Some industries provide a large amount of their revenue.
2. Their ability to use their logistical infrastructure in a continuous manner is critical to their business.
3. They might not be able to pass on any increases in operating costs to their clients, and their failure to control costs could hurt their firm.
4. The COVID-19 epidemic has had, and may continue to have, a significant negative effect on their business.
5. They intend to use the Net Proceeds to pursue inorganic development for which no specific goal has been defined.
6. Their firm, Directors, Promoters, and Subsidiaries are all involved in ongoing legal processes. Any negative outcome in such actions might harm their reputation, business, and financial situation.

Growth

Supply chains have become increasingly complicated as a result of structural shifts in the sector, necessitating a greater reliance on technology to assure excellent service levels.

Furthermore, the COVID-19 pandemic has increased organisations’ awareness of supply chain complexity, and as a result, there is a growing trend toward end-to-end outsourcing, with businesses looking to engage supply chain businesses to not only handle their supply chain and logistics demands, but also to provide additional specialised services.

They use technology, data science, and implementation experience to provide specialised solutions to decrease sophistication in their clients’ supply chains, including accurate demand predicting, inventory planning and production, procurement management, system integration, accessibility, and innovativeness to handle changing demands.

TVS Supply Chain IPO Brokerage views

Here is the views of different stock brokers regarding this IPO:

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

TVS Supply Chain IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
10 August 2023	1
11 August 2023	2
14 August 2023	3

Management

They are led by a seasoned management team that they believe has the knowledge and ambition to expand their company.

R. Dinesh, their Executive Vice Chairman, is a director on the board of TVS Automobile Solutions Private Limited, as well as the joint managing director of T V Sundram Iyengar & Sons Private Limited.

He graduated from Madurai Kamaraj University with a bachelor’s degree in commerce. He is a member of the Institute of Chartered Accountants of India and the Institute of Cost and Works Accountants of India as an associate member.

He has been a part of the company from its inception. He has 34 years of expertise in the automotive retail, digitalization, and logistics businesses.

Promoters

• TVS Mobility Private Limited
• T.S. Rajam Rubbers Private Limited
• Dhinrama Mobility Solution Private Limited
• Ramachandhran Dinesh

Promoter’s Holding

Pre Issue Share Holding	52.29%
Post Issue Share Holding

TVS Supply Chain Solutions Prospectus