TVS Supply Chain Solutions IPO sees 89% booking on 2nd day of bidding

The public issue of TVS Supply Chain Solutions, which is a part of TVS Mobility Group, has received a decent response from investors. As of the second day of bidding on August 11, participants had purchased 2.24 crore equity shares, which resulted in an 89 percent subscription rate.

The activity level of retail investors remained high, as evidenced by the fact that they purchased 3.29 times the share that was reserved specifically for them (10 percent of the total offer size). High-net-worth people have placed bids on 90 percent of the shares available in their component of the IPO, which accounts for 15 percent of the total amount. The company has reserved a part of the initial public offering (IPO) equal to 75% for qualified institutional purchasers, who have purchased 8% of the company's shares so far.

The initial day of bidding for the public issue worth 880 crores was subscribed to at a rate of 55 percent. The price range for the offer, which will end on August 14th, has been determined to be between 187 and 197 Indian Rupees (Rs.) per share.

The company that provides logistical solutions and is situated in Chennai plans to raise a total of Rs 800 crore through a fresh issue and the remaining Rs 280 crore through an offer-for-sale (OFS). In total, 22 shareholders are participating in the OFS by offering their shares for sale.

The company has been able to raise Rs 396 crore from anchor investors, which includes Societe Generale, Aurigin Master Fund, Tata Mutual Fund, SBI Life Insurance, Sundaram Mutual Fund, Copthall Mauritius, and BNP Paribas Arbitrage, among others. This represents 396 percent of the total amount that may be raised through the IPO. A total of 18 investors took part in the anchor book and were each given 197 rupees worth of shares in return for their participation.

TVS Supply Chain Solutions, one of the integrated supply chain solution providers that is developing at the fastest rate, would utilise the money from the fresh issuance to repay the debt that is worth Rs 525 crore, while the money from the offer-for-sale will go to the selling shareholders.

Following the conclusion of the public offering, the company's equity shares are scheduled to make their first appearance on the BSE and NSE on August 24, in accordance with the IPO timetable.

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