TVS Supply Chain Solutions IPO subscribed 55% on Day 1

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The initial public offering (IPO) of TVS Supply Chain Solutions, which opened on Thursday, witnessed good response from retail investors.

The ₹880-crore IPO from the TVS Mobility Group was subscribed 55 per cent on the first day of subscription on Thursday. The IPO received bids for 1.38 crore shares against 2.51 crore shares on offer, according to data available with the exchanges.

The price band has been fixed at ₹187-197. The subscription will close on August 14. The lot size is 76 equity shares.

The offer consists of fresh issue of equity shares aggregating up to ₹600 crore, and an offer for sale of up to 1.42 crore shares from promoters and selling shareholders.

Among the sellers in the OFS are Omega TC Holdings PTE. Ltd (1.07 crore shares), Tata Capital Financial Services Ltd (9.85 lakh Shares), Kotak Special Situations Fund, TVS Motor Company (1 lakh shares each). About 22.94 lakh shares will be sold by certain other shareholders.

Also read: TVS Supply Chain Solutions IPO: Should investors subscribe?

The category reserved for retail individual investors (RIIs) was subscribed 1.71 times, while the portion reserved for non-institutional investors received 69 per cent subscription and the quota for qualified institutional buyers (QIBs) got subscribed 8 per cent

The IPO has reserved not less than 75 per cent of the shares in the public issue for qualified institutional buyers, not more than 15 per cent for non-institutional investors (NII), and not more than 10 per cent of the offer is reserved for retail investors.

As part of the IPO process, the supply chain firm on Wednesday raised ₹396 crore from anchor investors by deciding to allot 2.01 crore shares at the upper end of the price-band i.e. ₹197. The list of such anchor investors includes Franklin Templeton MF, SBI Life Insurance, Sundaram Mutual Fund, Tata MF, Societe Generale, BNP Paribas Arbitrage, Copthall Mauritius Investments, Authum Investment and Aurigin Master and Winro Commercial.

The company is planning to utilise the fresh issue worth ₹600 crore to repay its debt and its subsidiaries’ TVS LI UK and TVS SCS Singapore and for general corporate purposes. The book-running lead managers for the TVS Supply Chain IPO are JM Financial, Axis Capital, JPMorgan India, BNP Paribas, Nuvama Wealth Management and Equirus Capital. Link Intime India Private Ltd is the IPO registrar.