TVS Supply Chain share price trades weak, but sustain IPO price; should investors sell or hold?
debut on bourses on Wednesday. TVS Supply Chain shares were listed at a premium of 5.1 per cent at ₹207.05 apiece on the NSE with respect to the issue price of ₹197 per share. On BSE, TVS Supply Chain Solutions shares were listed at ₹206.30, a 4.72 per cent premium to the issue price.
The stock jumped almost 6 per cent in intraday trade with respect to its issue price. However, it cooled off later and at around 11:45 am, the stock was up 1.57 per cent at ₹200.10 on BSE. Earlier, the IPO of the company, which consisted of a fresh issue of shares worth ₹600 crore and an offer for sale of shares worth ₹280 crore, was subscribed 2.85 times in total from August 10 to August 14.
The IPO received 7.89 times subscriptions in the retail category and 1.37 times in the Qualified Institutional Buyers (QIB) category. The Non-Institutional Investors’ (NII) portion was booked 2.44 times. TVS Supply Chain Solutions had earlier raised ₹396 crore from 18 marquee anchor investors ahead of the IPO opening.
Many experts are of the view that investors can book profits in the counter and those who want to hold the stock should maintain a stop loss near the IPO price. Prashanth Tapse, Senior VP Research Analyst at Mehta Equities said one can consider selling allotted shares on the listing day. However, he added that risk-takers might find value in TVS Supply Chain's asset-light strategy, global services, and post-GST growth potential for organized logistics.
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