TVS Supply Chain shares to list on Wednesday. What GMP signals
TVS Supply Chain Solutions will likely debut on the exchanges on August 23. Ahead of the listing, the company's shares are fetching a mild premium of Rs 4 in the unlisted market, indicating a muted listing on the Street.
Considering the upper price band of Rs 197, the stock is expected to debut at a premium of just 2% over the issue price.
However, it is important to note that grey market premiums are just an indicator as to how the company's shares are stacked up in the unlisted market and are subject to change rapidly.
The IPO was subscribed to 2.85 times overall, which is a decent response.
However, the subscription was lower than some recent IPOs, and therefore the listing might not be that attractive, according to analysts.
«Although TVS Supply Chain Solutions is a leading supply chain management company, it operates in a highly competitive industry and has reported losses in the past two years. Additionally, the valuation of the IPO was also very high.
All of these factors could impact its listing. Therefore, we would suggest investors to book profits after listing,» said Anubhuti Mishra, Equity Research Analyst at Swastika Investmart.
The Rs 880-crore IPO of TVS Supply Chain was subscribed 2.78 times at close.
The issue received bids for 69.9 million shares against an offer size of 25.1 million shares.
The qualified institutional buyers (QIB) portion was subscribed 1.35 times, while the non-institutional investor (NII) segment was subscribed 2.35 times. The retail individual investor category saw bids for 7.61 times the shares set aside for them.
