TVS SUPPLY CHAIN SOLUTIONS LIMITED

TVS SUPPLY CHAIN SOLUTIONS LIMITED

TVS Supply Chain Solutions Limited IPO - IPO DETAILS 

IPO Date 

Aug 10, 2023 to Aug 14, 2023 

Price Band 

₹187 to ₹197 per share 

Lot Size 

76 Shares 

Issue Size 

₹880.00 Cr 

Allotment Date 

18 August 2023 

Listing Date 

23 August 2023 

 

Company Overview 

TVS Supply Chain Solutions offers supply chain management services to international organizations, government departments, and large and medium-sized businesses through two main segments: Integrated Supply Chain Solutions (ISCS) and Network Solutions (NS). 

The ISCS segment encompasses sourcing and procurement, integrated transportation, logistics operation centers, in-plant logistics, finished goods handling, aftermarket fulfillment, and supply chain consulting. In contrast, the NS segment includes global forwarding solutions (GFS) for comprehensive freight forwarding and distribution via ocean, air, and land, along with warehousing and port storage featuring value-added services. Additionally, the NS segment covers time-critical final mile solutions (TCFMS), offering closed-loop logistics, spares logistics, break-fix services, refurbishment and engineering support, as well as courier and consignment management. 

Throughout Fiscal 2022 and the nine-month period concluding on December 31, 2022, TVS SCS delivered its supply chain solutions to a global clientele exceeding 10,531 and 8,115 customers, respectively. During the same time spans, the company provided services to more than 1,044 and 733 customers within India. Noteworthy is the fact that as of December 2022, TVS SCS boasted 72 'Fortune Global 500 2022' companies within its global customer portfolio, while its Indian clientele included 25 companies from the same 'Fortune Global 500 2022' list. 

The company's roster of clients encompasses a diverse range of industries, including Automotive, Defence, Engineering, Fast-Moving Consumer Goods (FMCG), Rail, Utilities, E-commerce, and Healthcare. Notable clients within this list include Sony India Private Limited, Hyundai Motor India Limited, Johnson Controls-Hitachi Air Conditioning India Limited, Ashok Leyland Limited, TVS Motor Company Limited, Diebold Nixdorf, TVS Srichakra Limited, Lexmark International Technology Sarl, VARTA Microbattery Pte Ltd, Daimler India Commercial Vehicles Private Limited, Hero MotoCorp Limited, Modicare Limited, Panasonic Life Solutions India Private Limited, Dennis Eagle Limited, Electricity North West Limited, Yamaha Motor India Private Limited, and Torrot Electric Europa, S.A., among others. 

Objective of the IPO 

Here are a few quick reasons why TVS Supply Chain Solutions going public:  

1. Prepayment or repayment of a portion or the entirety of specific outstanding borrowings obtained by the company and its subsidiaries, namely TVS LI UK and TVS SCS Singapore. 

2. Fulfilling general corporate requirements and objectives. 

Company Financials 

Period Ended 

Total Assets 

Total Revenue 

Profit After Tax 

Net Worth 

Reserves and Surplus 

Total Borrowing 

31-Mar-21 

4990.06 

6999.69 

-76.34 

490.69 

473.94 

1547.92 

31-Mar-22 

5789.73 

9299.94 

-45.80 

714.00 

713.76 

1,763.78 

31-Mar-23 

6210.92 

10311.01 

41.76 

723.55 

774.19 

1989.62 

 

Key Performance Indicator 

Market Cap (₹ Cr.) 

8746 

EPS (Rs) 

1.04 

ROCE 

7.64% 

ROE 

5.50% 

Pros 

  1. The company holds a crucial position within India's dynamic and burgeoning third-party logistics sector. This advantageous stance enables the company to solidify its leadership by offering all-encompassing end-to-end solutions, leveraging its in-depth domain knowledge, expansive global network, and well-established knowledge repository. 

  1. The company holds a unique technological upper hand, further strengthened by its exclusive in-house technology, which enhances its competitive advantage. 

  1. The company's robust business model, propelled by a variety of sources of lucrative expansion, underscores its resilience, stability, and sustainability. 

  1. The brand has consistently showcased a track record of skillfully assimilating acquisitions with success. Over the past 15 years, the brand has executed upwards of 20 acquisitions. 

Cons 

  1. Conducting operations in 26 countries exposes the company to foreign exchange risks, given that a substantial portion of its revenue is earned in foreign currencies. Variations in exchange rates have the potential to impact on its financial performance. 

  1. The company's significant reliance on its technology infrastructure makes it susceptible to potential disruptions or failures, which could adversely affect its growth prospects, reputation, and financial stability. 

  1. The company's operations depend on third-party partners for specific functions, and any disruption or dissatisfaction with their services could have adverse effects on its overall operations, financial well-being, and cash flow. 

How to Apply for this IPO 

1. Go to https://ipo.adityatrading.in/ 

2. Enter your Client ID 

3. Enter the OTP received in your registered mobile number. 

4. Choose the IPO and click on apply button. 

5. Enter the UPI ID, Quantity, and Cut off the price. 

6. Click on submit button 

7. Confirm the mandate request received on your phone by entering the UPI Pin. 

You can also watch our youtube video on “How to Apply on IPO” by clicking on the link “https://www.youtube.com/watch?v=1qOI8dCpl1I&ab_channel=ATS

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