TVS Supply Chain IPO sees strong retail demand, issue subscribed 2.78 times
₹880 crore IPO was subscribed 2.78 times, with bids received for a total of 6.99 crore shares against 2.51 crore on offer, according to data from the stock exchanges. The IPO’s institutional quota was subscribed 1.35 times, while non-institutional investors’ portion was subscribed 2.35 times, suggesting that the primary market may be headed for brisk business. “IPOs priced over last 1-2 quarters has seen strong participation from all categories - domestic & foreign institutional and retail investors.
Headline number of IPOs have increased however most of the IPOs are in the sub-$150mm size range and large sized IPOs continue to elude markets," said Abhinav Bhar, head of equity capital markets, JP Morgan. The IPO comprised a primary issuance of up to ₹600 crore and an offer for sale of up to 14.2 million shares worth ₹280 crore. The price band was set at ₹187-197 per share.
The issue was open for subscription between 10 August and 14 August, shares are expected to be listed on 23 August. In an attempt to encourage investors in the primary market, the Securities and Exchange Board of India has reduced the listing timeline from six days to three. “Prior to this, the anchor lock-up was split into two parts last year with 30 days for 50% of anchor allotment and 90 days for remaining 50%.
In order to lend higher flexibility for participation in non-institutional category, the non-institutional category has been split into 1/3rd for Rs.2 lakhs – Rs.10 lakhs bid size and 2/3rd for above Rs.10 lakhs bid size," added Bhar. Through the OFS, shareholders such as Omega TC Holdings will offload 1.07 crore shares, while Tata Capital Financial will sell 9.84 lakh shares. Other shareholders, liquidating stake are Sargunaraj Ravichandran,
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