TVS Supply Chain Solutions IPO Details Issue Price, Date, News, Allotment Status, GMP, Link, Updates

·         Mahindra & Mahindra Limited (17 years)	·         Sony India Private Limited (11 years)	·         Hyundai Motor India Limited (12 years)
·         Ashok Leyland Limited (16 years)	·         TVS Motor Company Limited (16 years)	·         Johnson Controls-Hitachi Air Conditioning India Limited (2 years)
·         Lexmark International Technology Sarl (5 years)	·         Diebold Nixdorf (7 years)	·         TVS Srichakra Limited (9 years)
·         VARTA Microbattery Pte Ltd (6 years)	·         Daimler India Commercial Vehicles Private Limited (11 years)	·         Hero MotoCorp Limited (7 years)
·         Modicare Limited (6 years) ·         Electricity North West Limited (4 years)	·         Panasonic Life Solutions India Private Limited (11 years)	·         Dennis Eagle Limited (16 years)

TVS Supply Chain Solutions IPO Details:

TVS Supply Chain Solutions IPO Financial Analysis:

Trade AnyTime AnyWhere With Elite Empower Mobile App

 

TVS Supply Chain Solutions IPO Revenue from Operations:

TVS Supply Chain Solutions IPO Shareholding Pattern:

Particulars	Pre- Issue	Post Issue
Promoters Group	46.65%	40.15%
Others	53.35%	59.85%

Source: RHP, EWL Research

TVS Supply Chain Solutions IPO Strengths:

• TVS Supply Chain Solutions Limited operates at the forefront of a rapidly expanding logistics industry in India that is expected to grow to US$365 billion by Fiscal 2026 at a CAGR of 15% from US$180 billion in Fiscal 2021. India has an inefficient logistics system, with total logistics spending in India accounting for approximately 14% of GDP in Fiscal 2020, which is significantly higher than developed countries like the United States.

• TVS Supply Chain Solutions Limited acts as a complete ‘one-stop’ solution for customers from sourcing to distribution through its end-to-end capabilities, which include sourcing and procurement, integrated transportation, logistics operating center, in-plant logistics operations, finished goods, and aftermarket fulfillment, import and export freight, closed-loop logistics and support, and secondary transportation.

• TVS Supply Chain Solutions Limited is strongly differentiated by its technology as an innovative provider of logistics solutions that enhance visibility, speed, accuracy, and cost-effectiveness for the customers, and by the company’s ability to customize its technology-enabled services to cater to each customer’s requirements

• TVS Supply Chain Solutions Limited has an established track record of successful inorganic growth through strategic acquisitions that supplement our operations. Over the years, the company has made more than 20 acquisitions in the last 15 years for growth across Europe, the United Kingdom, the United States, and Asia Pacific (including India).

• TVS Supply Chain Solutions Limited operates an asset-light business wherein the warehouses and vehicles are operated through leases with the network partners. While the company does not have ownership of these assets, it has control over the capacity and fleet, and the scheduling, routing, storing, and delivery of goods are managed by the company.

• TVSSCSL serves as a comprehensive ‘one-stop’ provider, managing the entire process from sourcing to distribution. Its full capabilities span sourcing, transportation, logistics, in-plant operations, aftermarket fulfillment, import/export, closed-loop logistics, and secondary transportation.

• The company’s asset-light model and long-term contracts enable it to adapt throughout the economic cycle, lowering expenses during recessions and positioning it to grow swiftly in developing regions.

• By utilising cutting-edge technology, co. stands out as a leading provider of logistics solutions that improve customers’ visibility, speed, accuracy, and cost-effectiveness.

TVS Supply Chain Solutions IPO Key Highlights:

• Revenue of the co. has increased from Rs.6,934 Cr. in FY21 to Rs.10,235 Cr. in FY23 with a CAGR of 13.9%.

• In FY21 and FY22, the co. had loss of Rs.76 cr. and Rs.46 cr., respectively. However, it recovered in FY23, posting a profit of Rs.42 cr.

• Co.’s’s EBITDA Margin & PAT Margin stands at 6.9% & 0.4% respectively in FY23.

• As of March, 2023, ROCE and ROE ratio of the co. is 7.64% and 5.50% respectively.

• Total borrowings of the co. has increased from Rs.1,548 cr. in FY21 to Rs.1989.6 cr. in FY23.

TVS Supply Chain Solutions IPO Risk Factors:

• TVS Supply Chain Solutions Limited typically enters into long-term agreements with customers and if its key customers do not renew their agreements with the company, or expand the scope of services, the company provides to them, or if the long-term relationships with the key customers are impaired or terminated, the business, financial condition, results of operations and cash flows could be adversely impacted.

• TVS Supply Chain Solutions Limited has undertaken and may continue to undertake strategic acquisitions in the future, which may be difficult to integrate and manage. These may expose the company to uncertainties and risks, any of which could materially adversely affect the business, financial conditions, results of operations and cash flows.

• TVS Supply Chain Solutions Limited derives a significant portion of its revenue from certain industries, and a loss of, or a significant decrease in business from customers in these industries could adversely affect the business, results of operations, financial condition, and cash flows of the company

• TVS Supply Chain Solutions Limited depends on network partners and other third parties in certain aspects of the operations and unreliable or unsatisfactory services provided by them or failure to maintain relationships with them could result in a disruption in the operations, which could have an adverse effect on the business, financial condition, results of operations, and cash flows.

• TVS Supply Chain Solutions Limited is highly reliant on its technology infrastructure and software suite in the business operations, and any disruption or failure of the technology infrastructure could materially and adversely affect the growth prospectus, reputation, business, results of operations, financial condition, and cash flows

• Top 20 customers accounted 38.88% of the total revenue in FY23, any loss of such customers may adversely affect company’s business.

• generates an average of 73% of revenue from exports that are denominated in foreign currencies and this arises significant risk of currency fluctuations.

• The co. mainly depends on network partners and outside parties for warehousing and transportation because of its asset-light strategy. Any one of these partners’ loss might seriously affect the company’s operations.

TVS Supply Chain Solutions IPO Outlook:

TVSSCSL is an Indian multinational corporation that originated the growth of the supply chain solutions sector in India. For more than 16 years, the company has used specialized tech-enabled solutions to handle massive and complicated supply chains in a variety of industries in India and certain international markets.  Co.’s robust presence and cutting-edge technology in India’s logistics business are favorable. However, concerns exist regarding prior losses, currency fluctuations, and over-dependence on a small number of significant clients. TVSSCSL is offering the P/E of 206x on the upper price band compared to the industry average of 43x. The IPO is highly overpriced, and even the funds raised might not be of much use to the company as it would be used to pay off debt. So, taking into account all of these factors, we advise to avoid the offering.

TVS Supply Chain Solutions IPO Objects of the Offer:

TVS Supply Chain Solutions Limited proposes to utilize the Net Proceeds towards funding the following objects:

• Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the Company and its Subsidiaries, TVS LI UK and TVS SCS Singapore
• Purchasing minority stake from existing shareholders of our Subsidiary, Rico Logistics Limited, UK;
• Capitalisation of strategically important step-down Subsidiaries TVS SCS Germany, TVS LI USA and TLM Thailand;
• Inorganic growth initiatives and general corporate purposes.

TVS Supply Chain Solutions Limited IPO Prospectus:

• TVS Supply Chain Solutions Limited IPO DRHP –
• TVS Supply Chain Solutions Limited IPO RHP –

TVS Supply Chain Solutions IPO