TVS Supply Chain Solutions IPO Listing: Shares have tepid debut on bourses, list at 5% premium

TVS Supply Chain Solutions IPO: TVS Supply Chain Solutions shares listed at 4.72% premium over IPO price on NSE and BSE amid flat domestic market. The share debuted at Rs 206.30 on the BSE, as compared to the issue price of Rs 197. TVS Supply Chain Solutions shares’ grey market premium gained 1.5% on Wednesday, commanding a premium of Rs 3 over upper end of the IPO price, implying a listing price of Rs 200 per share.

TVS Supply Chain Solutions IPO subscription data

TVS Supply Chain Solutions IPO opened for subscription on 10 August and the issue was fully subscribed 2.85 times on the last day of subscription, helped by overwhelming participation from retail investors. The Qualified Institutional Buyers (QIBs) category was subscribed 1.37 times, the portion for non-institutional investors received 2.44 times subscription and Retail Individual Investors (RIIs) quota got oversubscribed by 7.89 times.

“At the upper price band of Rs 197, TVS SCS is available at a P/E of 209x (FY23), which appears aggressively priced compared to peers. However, favourable factors include the fragmented Indian logistics market, growth potential for organized players, post-GST logistics focus, and outsourcing trends. TVS SCS’s asset-light approach, diverse global services, long-term contracts, and integrated capabilities position it well for growth. We assign a “Subscribe” rating for the issue on a short- to medium-term basis,” said Geojit Research.

About TVS Supply Chain Solutions

TVS Supply Chain Solutions (TVS SCS) is a subsidiary of TVS Mobility Group, is a leading integrated supply chain solutions provider in India. With substantial revenue and growth in Fiscal 2023, TVS SCS operates across 25+ countries. Serving 8778 global and 902 domestic clients in FY23, the company caters to diverse sectors such as automotive, industry, consumer products, technology, rail, utilities, and healthcare.

RBI slaps penalties on ICICI Bank, KMB for violating norms

The Reserve Bank on Tuesday imposed monetary penalty of Rs 12.19 crore on ICICI Bank and Rs 3.95 crore on Kotak Mahindra Bank for violating various norms.

The central bank said it conduced statutory inspection of ICICI Bank in 2020 and 2021 which revealed that the lender had sanctioned or committed loans to companies in which two of its directors were also directors.

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“Consequently, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for failure to comply with the provisions of the BR Act,” the Reserve Bank said, adding that basis the responses received from the bank, the imposition of penalty was warranted.

The action on ICICI Bank, however, is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, the RBI said.

Kotak Mahindra Bank, meanwhile, was penalised for failing to carry out annual review or due diligence of its service provider. Separately, it also failed to ensure that its customers are not contacted after 7 pm and before 7 am, in contravention of the appointment and ethics of RBI’s recovery agents norm.

The RBI found that Kotak Mahindra Bank levied interest from disbursement due date instead of the actual date of disbursement, contrary to the terms and conditions of sanction. The lender also levied foreclosure charges despite there being no clause in the loan agreement for levy of prepayment penalty on loans recalled by the bank.