TVS Supply Chain Solutions is one of the largest supply chain service providers in India. TVS Supply Chain is coming out with an IPO of Rs. 880 crores. The fresh issue of equity shares part is Rs. 600 crores and the offer for sale (OFS) component is up to Rs. 280 crores in the IPO.
The promoters of the company are – TVS Mobility Private Limited, T.S. Rajam Rubbers Private Limited, Ramachandhran Dinesh, and Dhinrama Mobility Solution Private Limited.
They collectively hold 46.65% (promoters along with the promoter group) of the pre-issue shares of the company.
Big bankers like – JM Financial, Axis Capital Limited, JP Morgan, BNP Paribas, Nuvama Wealth Management Limited and Equirus Capital Private Limited are the book-running lead managers of the public offering.
Whereas, the registrar for the issue is Link Intime India Private Limited.
In the article, you will find all the relevant details that will help you make informed investment decisions in TVS Supply Chain IPO.
TVS Supply Chain Solutions IPO Details
| Particulars | Details |
| IPO Opening date | 10th August 2023 |
| IPO Closing date | 14th August 2023 |
| IPO Bid Price | Rs. 187 to Rs. 197 |
| Lot size | 76 shares |
| Issue size | Rs. 880 Cr |
| No. of fresh shares | 30,456,853 shares aggregating to Rs. 600 crores |
| Offer for Sale | 14,213,198 shares aggregating to Rs. 280 crores |
| Listing on | BSE and NSE |
You can check here the list of other upcoming IPOs in 2023.
TVS Supply Chain Solutions IPO Timetable
| Particulars | Details |
| IPO Opening date | 10th August 2023 |
| IPO Closing date | 14th August 2023 |
| Basis of Allotment date | 18th August 2023 |
| Credit of Share | 22nd August 2023 |
| Listing date | 23rd August 2023 |
TVS Supply Chain Solutions GMP
Grey Market Price (GMP) information is available approximately 4-5 days before the IPO opens and persists until the listing date.
For TVS Supply Chain Solutions Ltd IPO, we have already obtained GMP data for the past 3 days, which should provide a reasonable indication of price upon listing.
You can check the grey market premium as an effective reflection of the true narrative surrounding a stock. But you need to take precautions because GMP is not an official price and only an indicative value.
Below is a brief summary of the GMP for TVS Supply Chain Solutions Ltd for the last 4 days obtained from 5Paisa.
| Date | GMP |
| 12th August 2023 | Rs. 13 |
| 11th August 2023 | Rs. 13 |
| 10th August 2023 | Rs. 14 |
| 9th August 2023 | Rs. 22 |
Industry Overview
TVS Supply Chain Solutions operates in the Logistics sector.
The Indian logistics sector is one of the largest in the world and presents a large addressable opportunity. The sector is critical for the economic growth of the country as it connects various elements of the economy and consists of transportation, warehousing and other supply-chain solutions ranging from the suppliers to the end customers.
The Indian logistics sector witnessed a strong post-COVID recovery in Fiscal 2022. The market grew by 14% and was valued at US$435 billion in Fiscal 2022 and is projected to grow to US$591 billion by Fiscal 2027.
The logistics market is large and projected to grow sustainably for the next five years.
The consumption across end-user industries in India will result in increased demand for logistics services in India
A large working-age population, increasing urbanization and increasing household income will lead to increasing demand for products across categories. Growth in e-commerce and organized retail is expected to be the highest at upwards of 26% and 22%, respectively, by Fiscal 2027
The domestic transportation market witnessed a healthy growth rate of approximately 10% between Fiscal 2017 to Fiscal 2020. The market witnessed a strong recovery growing by 35% y-o-y in Fiscal 2022.
Moreover, the manufacturing sector is also expected to recover given the various initiatives by GoI. Manufacturing PMI also reached a three-month high in November 2022.
The road transport is dominating the domestic transportation market due to favorable policies, robust infrastructure development and rising customer preference towards faster, reliable, and flexible shipping services.
TVS Supply Chain Solutions Overview
TVS Supply Chain Solutions is India’s largest and among fastest-growing integrated supply chain solutions provider.
For more than 16 years, the company managed large and complex supply chains across multiple industries in India and select global markets like US, UK and Europe. The company has grown significantly to Rs. 10,311 cr in total income for fiscal 2023.
TVS Supply Chain Solutions’s customers span numerous industries such as automotive, industrial, consumer, tech and tech infra, rail and utilities, and healthcare.
The company has developed long-term relationships with a number of clients like –
- Sony India Private Limited (12 years)
- Hyundai Motor India Limited (13 years),
- Ashok Leyland Limited (17 years),
- TVS Motor Company Limited (17 years),
- Diebold Nixdorf (8 years),
- TVS Srichakra Limited (10 years),
- Lexmark International Technology Sarl (6 years),
- Hero MotoCorp Limited (8 years)
Two supply chain services offered by the company are –
#1. Integrated Supply Chain Solutions (ISCS)
TVS Supply Chain Solutions’s integrated end-to-end supply chain solutions include sourcing and procurement, integrated transportation, logistics operation centers, in-plant logistics operations, finished goods and aftermarket fulfillment.
In Fiscal 2023, The company provided services to 412 customers in the ISCS segment
#2. Network Solutions (NS)
As part of NS solutions, the company offers customers Global Forwarding Solutions (GFS) and Time Critical Final Mile Solutions (TCFMS.
In Fiscal 2023, TVS Supply Chain provided services to 8,376 customers in the NS segment.
The operations snapshot is under
TVS Supply Chain Solutions Subscription Data
| Date | QIB | NII | Retail | Total |
| Day – 1 10th August 2023 | 0.08 | 0.69 | 1.71 | 0.55 |
| Day – 2 11th August 2023 | 0.15 | 1.06 | 3.78 | 1.06 |
| Day – 3 14th August 2023 | 1.37 | 2.44 | 7.89 | 2.85 |
Method to check the subscription data.
TVS Supply Chain Solutions Promoter Details
TVS Mobility Private Limited, T.S. Rajam Rubbers Private Limited, Ramachandhran Dinesh, and Dhinrama Mobility Solution Private Limited are the promoters of the company.
The promoter along with the promoter group collectively holds 189,848,294 Equity Shares which is equal to 46.65% of the pre-issue shares issued.
Note – The promoter holding in the company is low.
TVS Supply Chain Solutions Financials
Key financials of TVS Supply Chain Solutions Ltd for the last 3 completed financial years is under. These include the fiscal years FY23, FY22 and FY21.
| Details | FY- 2023 | FY- 2022 | FY- 2021 |
| Total Assets | Rs. 6210.9 cr | Rs. 5789.7 cr | Rs. 4990.0 cr |
| Total Income | Rs. 10,311.0 cr | Rs. 9299.9 cr | Rs. 6999.6 cr |
| Profit /(Loss) After Tax | Rs. 41.7 cr | Rs. (45.8) cr | Rs. (76.3) cr |
| Net Worth | Rs. 723.5 cr | Rs. 714.0 cr | Rs. 490.6 cr |
| Other Equity (including retained earnings) | Rs. 687.1 cr | Rs. 677.7 cr | Rs. 439.8 cr |
| Total Borrowing | Rs. 1989.6 cr | Rs. 1763.7 cr | Rs. 1547.9 cr |
The revenues from operations of TVS Supply Chain have grown in the last three years from Rs. 4990 cr to Rs. 6210 cr. The PAT has also grown from being negative (loss) at Rs. 76.3 cr to Rs. 41.7 cr positive during the same period.
The net worth has improved from Rs. 490 cr in FY 2021 to Rs. 723 cr in 2023. In the past three years, TVS Supply Chain’s long-term borrowings grew from Rs. 1547 cr to Rs. 1989 cr.
TVS Supply Chain Solutions Peer Comparison
Below table shows a comparison between TVS Supply Chain Solution and other listed companies.
| Company | P/E | EPS | Net Worth | RoNW | NAV |
| TVS Supply Chain Solutions Limited | – | 1.04 | Rs. 723.5 Cr | 5.50% | Rs. 18.89 |
| TCI Express Limited | 40.57 | 36.24 | Rs. 596.3 Cr | 23.35% | Rs. 155.66 |
| Mahindra Logistics Limited | 42.15 | 8.97 | Rs. 560.3 Cr | 4.89% | Rs. 77.84 |
| Blue Dart Express Limited | 46.38 | 154.43 | Rs. 1179.5 Cr | 31.41% | Rs. 497.12 |
| Delhivery Limited | NA | -2.14 | Rs. 9177.1 Cr | -1.73% | Rs. 125.94 |
TVS Supply Chain Solutions Objects of the Issue
TVS Supply Chain Solutions proposes to utilize the Net Proceeds from the Issue for –
1. Repayment or pre-payment, in full or in part, of the outstanding borrowings availed by the Company and its subsidiary, TVS LI UK for an amount of Rs. 525 crores.
2. For General corporate purposes.
As of March 31, 2023, TVS Supply Chain total borrowings were Rs. 1989.6 Cr, on a consolidated basis.
TVS Supply Chain Solution proposes to utilize an estimated amount of up to Rs. 525 Cr from the IPO towards prepayment or scheduled repayment of all or a portion of term loans and working capital facilities availed by the company and a term loan availed by the subsidiary, TVS LI UK.
TVS Supply Chain Solution majority of the borrowings are from Axis and HDFC Bank Limited.
Whereas, TVS LI UK loan aggregating to Rs. 210 Cr is from Axis Bank, DBS Bank, Standard Chartered Bank, IndusInd Bank, Indian Bank, Union Bank and HDFC Bank under a common facility agreement
The company is not using the IPO money for expansion or any strategic initiatives. But proposes to utilize an estimated amount of Rs. 525 crores from the IPO money to repay/pre-pay the borrowings of both the company and the subsidiary.
TVS Supply Chain Solutions Issue Size
Rs. 680 crores.
(Fresh Shares of Rs. 600 Crs + OFS Portion of Rs. 280 Crs)
TVS Supply Chain Solutions Limited IPO Is Worth?
You can make the final decision to invest in the IPO based on the fundamentals of the company, market size, and dominance in the industry.
TVS Supply Chain Solution is a leader in a fast-growing and fragmented third-party logistics market in India. They have end-to-end solutions enabled by domain expertise, a global network and solid knowledge base.
The logistic market grew by 14% and was valued at US$435 billion in Fiscal 2022 and is projected to grow to US$591 billion by Fiscal 2027.
The logistics market is large and projected to grow sustainably for the next five years.
The company has robust in-house technology, long and consistent track record of successful integration of acquisitions to support capabilities and customer acquisition.
They have long-term customer relationships in diversified and attractive industries and a resilient business model with multiple drivers of profitable growth.
TVS Supply Chain Solution has a strong parentage with a management team with cross-industry experience.
The revenues from operations of TVS Supply Chain have grown in the last three years from Rs. 4990 cr to Rs. 6210 cr. The PAT has also grown from being negative (loss) at Rs. 76.3 cr to Rs. 41.7 cr positive during the same period.
The net worth has improved from Rs. 490 cr in FY 2021 to Rs. 723 cr in 2023. In the past three years, TVS Supply Chain’s long-term borrowings grew from Rs. 1547 cr to Rs. 1989 cr.
Key risk to consider are –
- Low 46.65% promoter holding
- Using IPO money to repay debt
- Losses in FY 2021, and 2022
- Revenue from operations is in foreign currencies
