TVS Supply Chain Solutions made a subdued market entry on Wednesday, with its shares listing at a modest premium of 5% over the initial public offering (IPO) price. The stock commenced trading at ₹207 on the National Stock Exchange (NSE), marking a 5% increase, while on the Bombay Stock Exchange (BSE), it started at ₹206.3, a 4.7% uptick.
Although the IPO received an overall subscription of 2.85 times, signalling a decent response, the subscription rate fell short of recent IPOs, casting a shadow on the attractiveness of the listing, experts noted.
"While TVS Supply Chain Solutions holds a prominent position in the supply chain management sector, the company faces robust competition and has reported consecutive losses in the last two fiscal years. Moreover, the IPO valuation appeared notably high," remarked Anubhuti Mishra, an Equity Research Analyst at Swastika Investmart.
The IPO, amounting to ₹880 crore, witnessed a subscription of 2.78 times upon closure. The offering received bids for 69.9 million shares against an available 25.1 million shares.
The institutional buyers' section registered a subscription rate of 1.35 times, while non-institutional investors exhibited 2.35 times oversubscription. The retail individual investor category displayed a remarkable 7.61 times oversubscription. The issue was priced within the range of ₹187 to ₹197 per share.