TVS Supply Chain IPO: All you need to know
TVS Supply Chain Solutions is among India’s largest and fastest-growing integrated supply chain solutions providers in terms of revenues in the fiscal year 2022 that is set to launch its IPO for subscription on 10 August 2023 to 14 August 2023. The set IPO price range is Rs. 187 to Rs. 197 with a lot size of 76 shares with a minimum investment of Rs. 14,972.
The listing date of the IPO is 23 August 2023. The total IPO size is Rs. 880.00 crore which includes a Rs. 600 Crore fresh issue and Rs. 280 crore Offer-for-Sale (OFS).
TVS Supply Chain IPO: Business Overview
TVS Supply Chain Solutions helps big and small businesses, along with global groups and government offices, with supply chain solutions.
TVS SCS offers its services in two segments:
- Integrated supply chain solutions (ISCS); and
- Network Solutions (NS)
During Fiscal 2022, TVS SCS served over 10,531 global customers and 1,044 Indian customers. In the nine months ending December 2022, they served 8,115 global and 733 Indian customers. As of December 2022, their clientele included 72 'Fortune Global 500 2022' companies globally and 25 in India.
The company serves clients from sectors like Automotive, Defence, FMCG, Rail, Utilities, E-commerce, and Healthcare, including names such as Sony India, Hyundai Motor India, Johnson Controls-Hitachi Air Conditioning India, Ashok Leyland, TVS Motor, Diebold Nixdorf, VARTA Microbattery, Daimler India, Hero MotoCorp, and Yamaha Motor India, among others.
IPO Details:
| IPO Open and Close Date | Aug 10, 2023, to Aug 14, 2023 |
| IPO price range | ₹187 to ₹197 per share |
| Lot Size | 76 Shares |
| IPO size | Rs 880 Crores |
| Basis of Allotment | Friday, 18 August 2023 |
| Credit of Shares to Demat | Tuesday, 22 August 2023 |
| Listing Date | Wednesday, 23 August 2023 |
TVS Supply Chain IPO Reservation:
| QIB Shares Offered | Not less than 75.00% of the Net offer |
| NII (HNI) Shares Offered | Not more than 15.00% of the Offer |
| Retail Shares Offered | Not more than 10.00% of the Offer |
(Source: DRHP)
TVS Supply Chain IPO: Financials
| Particulars | FY23(in Rs Crores) | FY22(in Rs Crores) | FY21(in Rs Crores) |
| Revenue | 10,311.01 | 9,299.94 | 6,999.69 |
| Profit After Tax | 41.76 | -45.8 | -76.34 |
| Reserves and Surplus | 774.19 | 713.76 | 473.94 |
| Total Borrowing | 1,989.62 | 1,763.78 | 1,547.92 |
(Source: DRHP)
The Reserves have increased from Rs 713.76 Crores in March 2022 to Rs 774.19 Crores in March 2023, with a significant increase of 8.46% indicating overall performance.
In terms of revenue, the TVS Supply Chain has experienced significant growth in revenue, rising from Rs. 9,299.94 Crores in FY22 to Rs. 10311.01 Crores in FY23, with a significant increase of 10.87%. Moreover, the Net profits have also seen a notable increase, going up from a loss of Rs. 45.8 Crores in FY22 to a profit of Rs. 41.76 Crores in FY23, with a significant increase of 191.17% over the past year.
| Key Performance Indicator | Values |
| Market Cap (₹ Cr.) | 8746 |
| ROE | 5.50% |
| RoNW | 5.50% |
| EPS (Rs) | 1.04 |
(Source: DRHP)
TVS Supply Chain IPO: Strengths of the company
- Vital growth in India's fragmented third-party logistics sector.
- They are experts in providing complete solutions because of their knowledge, worldwide connections, and experience.
- Robust in-house technology differentiation.
- They have a history of effectively merging bought companies to enhance their skills and gain customers.
- Lasting customer ties across varied, appealing sectors through comprehensive engagement.
- Solid backing and a management team with diverse industry experience.
TVS Supply Chain IPO: Risks
They rely on network partners and third parties for some operations. If their services falter or relationships with them deteriorate, it could disrupt our operations and negatively impact our business and finances.
Heavily depends on our technology and software for operations. Any disruption or failure could significantly harm our growth, reputation, and overall financial health.
TVS Supply Chain IPO Peer Comparison:
| Name | Total Income (In crores) | P/E Ratio | PAT (In Crores) |
| TVS Supply Chain Solutions Limited | 10,311.01 | NA | 41.76 |
| TCI Express Limited | 1,248.18 | 40.57 | 139.28 |
| Mahindra Logistics Limited | 5,144.14 | 42.15 | 24.63 |
| Blue Dart Express Limited | 5,204.26 | 46.38 | 370.53 |
| Delhivery Limited | 7,530.25 | NA | -1,007.78 |
(Source: DRHP)
(As of FY2023)