TVS Supply Chain Solutions IPO: A look into IPO and company’s financials, strengths, and risks for savvy investors

The IPO for TVS Supply Chain Solutions presents a chance to invest in one of India's prominent integrated supply chain solutions providers.

TVS Supply Chain Solutions ipo

TVS Supply Chain Solutions (TVS SCS) is poised to make a significant mark in India's IPO landscape. As the company prepares to launch its Initial Public Offering (IPO) for subscription from August 10 to August 14, 2023, potential investors are eager to seize this opportunity.

Highlights -

  • TVS SCS: Subscription starts today with a Rs. 187–197 per share range.
  • Shares trading at ₹30 premium in the grey market, signalling strong investor interest.
  • FY23 Revenue is reported at ₹10,311.01 crore, and the profit is 41.76 crore.
  • The IPO proceeds will be used for debt repayment and corporate needs.

IPO Snapshot

 IPO for TVS Supply Chain Solutions



Business Overview 

TVS SCS caters to businesses of all sizes, including global conglomerates and government entities, offering integrated supply chain solutions (ISCS) and network solutions (NS). In fiscal year 2022, the company served over 10,000 global customers and 1,000 Indian customers. Their clientele boasts 72 'Fortune Global 500' companies globally and 25 in India, spanning sectors like Automotive, E-commerce, Healthcare, and more.

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Objectives of the Issue

The fresh issue proceeds from the IPO will primarily be used for repaying debts totaling ₹525 crore and general corporate purposes. Meanwhile, the funds raised through the OFS will go to the selling shareholders.

Financial Parameters

The company's financials reflect robust growth, with revenue surging from Rs. 6,999.69 crore in FY21 to Rs. 10,311.01 crore in FY23, marking a notable 10.87% increase. Profits have transformed dramatically, shifting from a loss of Rs. 76.34 crore in FY21 to a profit of Rs. 41.76 crore in FY23, showcasing a remarkable 191.17% growth.

As of FY 23, The Return on Equity (ROE) and Return on Net Worth (RoNW) both stand at 5.50%. The EPS is ₹1.04, reinforcing the company's growth potential and ability to generate returns for its investors.

Strengths and Risks

TVS SCS boasts several strengths, including its expertise in providing comprehensive solutions, robust technology differentiation, and a strong track record of mergers for skill enhancement and customer acquisition. On the flip side, the company faces risks associated with foreign currency fluctuations, operating expenses, industry competition, customer concentration, labour law compliance, and ongoing litigation proceedings.

Investor Takeaways

The company's shares are trading at a Rs. 30 premium in the grey market, indicating investor interest.

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Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.


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