Upcoming IPO

The Indian stock market is experiencing a frenzy as indices reach record highs. Private companies are taking advantage of the opportunity to list on the bourses, with an Initial Public Offering (IPO) launching almost every day, and most are receiving an overwhelming response from investors.

As of mid-August, at least 16 major companies have successfully launched their IPOs in 2023, raising over Rs—100 billion from the public. Moreover, approximately 42 companies are expected to tap into the equity markets in the coming months, aiming to generate around Rs. 540 billion.

This article could be helpful if you want to stay updated with the latest public offerings. Below is a list of the top five upcoming IPOs in September 2023. While some have already been announced, others are expected to receive final approval in the coming days.

Upcoming IPOs in September 2023

Here is a list of upcoming IPOs in September 2023:

Rishabh Instruments Limited

Rishabh Instruments Limited is a company based in India that specializes in providing energy efficiency solutions. They offer a wide range of products such as electrical automation, metering and measurement equipment, and precision-engineered products to clients across the power, automotive, and other sectors. The company also supplies its customers with various electrical measurement and process optimization equipment.

The IPO for Rishabh Instruments opened for public bidding from August 30, 2023, to September 1, 2023. The shares will be listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) on September 11. Investors had the option to bid for multiple lots, with one lot having 34 shares in the price band of Rs. 418 to Rs. 441 per share.

Ratnaveer Precision Engineering Limited

Ratnaveer Precision Engineering Limited has recently announced its plans to launch an Initial Public Offering (IPO) in September 2023. The company manufactures high-quality stainless steel (SS) products, such as sheets, washers, roofing hooks, pipes, and tubes. In the Financial Year 2023, It recorded a net profit of Rs. 25.04 crore, a significant increase from its previous year’s earnings of Rs. 9.48 crore in FY 2022.

Ratnaveer Precision Engineering IPO opened for public subscription on 4 September 2023 and comprises a fresh issue of 1.38 crore equity shares and an offer for sale of up to 30.4 lakh equity shares. The issue closes on 6^th September and will be listed on the exchanges on 14^th September. The price band is Rs. 93-98, and each lot is 150 shares. Check the DRHP here.

Balaji Specialty Chemicals Limited

Balaji Specialty Chemicals Limited is a prominent Indian manufacturer that produces a range of specialized chemicals. Their product line comprises Ethylenediamine, Piperazine, Amino Ethyl Ethanol Amines, Diethylenetriamine, and Amino Ethy Piperazine. These chemicals are primarily used as solvents, corrosion control agents, and photographic chemicals in the pharmaceutical and agrochemical industries.

The Balaji Specialty Chemicals IPO is a book-built issue expected to hit the market in either the first or second week of September 2023. While the precise details of the IPO are not yet public, the company’s Draft Red Herring Prospectus outlines its plans to raise approximately Rs. 425 crores through the offering.

EbixCash Limited

EbixCash Limited is a modern technology provider that caters to both B2C and B2B segments through an integrated business model. Its services fall into four categories: Payment Solutions, Travel Solutions, Financial Technologies, and Business Processing Outsourcing (BPO). The company is one of India’s biggest technology service providers and has a well-established global presence.

The company intends to raise Rs. 6,000 crores through its Book Built issue, which is scheduled to enter the market in mid-September 2023. However, the company has yet to reveal other critical information, such as the price band, lot size, and listing date. You can check the DRHP here.

Tata Technologies

Investors eagerly anticipate the launch of Tata Technologies’ IPO, which would be the first IPO from the renowned Tata Group in nearly 20 years. Tata Technologies provides various services, including engineering and design, product lifecycle management, and IT service management.

After careful deliberation, Tata Technologies plans to launch its IPO in September 2023. The company’s unlisted shares are traded in the grey market at Rs. 800 to Rs. 900 per share. Check out the DRHP here.

Watch for more details on the upcoming IPOs in September 2023.

Read more:  How Long-term investing helps create life-changing wealth – TOI.

Introduction

The TVS Supply Chain IPO just closed on 14th August 2023. If there is one thing that the world is taking seriously in the aftermath of the pandemic, it is how inefficient and fragmented the supply chain systems on which they relied were. And how they can fix the entire system.

The development of an efficient global supply chain system has taken center stage. It is why companies like TVS Supply Chain Solutions are trying to address the issue with its Integrated Supply Chain Solutions and Network Solutions.

TVS Supply Chain IPO

TVS Supply Chain Solutions intends to raise ₹880 crores at the upper price band. The issue consists of up to ₹750 crores in fresh issuance of equity shares, with the remaining amount raised through the OFS route, in which 22 shareholders are selling their stakes. The IPO closed on 14th August 2023, and the issue was oversubscribed by 2.78 times.

The TVS Supply Chain listing price will be available only when the business lists on the exchange. The basis of allotment will be finalized on 18th August 2023, and shares will be credited to the Demat account of eligible shareholders on 22nd August.

Introduction to TVS Supply Chain Solutions

TVS Supply Chain Solutions (TVS SCS) is a part of TVS Mobility Group, which has interests in rubber, automotive components, logistics, and mobility solutions with collective annual revenue of over $2 billion. It commenced operations as TVS Logistics in 1995 before being incorporated as a separate company.

The company has developed expertise in managing large and complex supply chains across multiple industries in India and select global markets through tech-enabled solutions, enabling large-scale agile, and efficient supply chains.

TVS Supply Chain Solutions provide end-to-end capabilities in supply chain and logistics management and offers services under two segments:

• Integrated Supply Chain Solutions (ISCS)
• Network Solutions (NS)

The Integrated Supply Chain Solutions segment includes sourcing and procurement, integrated transportation, logistics operation centers, in-plant logistics operations, finished goods, aftermarket fulfillment, and supply chain consulting. And the Network Solutions segment includes global forwarding solutions (GFS).

In FY22, the company provided supply chain solutions to 10,531 customers worldwide and 1044 in India. And, for the nine months period ending in December 2022, it provided services to 8,115 customers globally and 733 customers in India.

Its clientele list includes 72 global and 25 Indian customers from the ‘Fortune Global 500 2022’ list, including Sony India Private Limited, Hyundai India, Ashok Leyland, TVS Motor, Johnson Controls-Hitachi Air Conditioning, and others.  Furthermore, it provides services in 26 countries and employs over 17,600 people.

TVS Supply Chain Management Personnel

TVS Mobility Group is managed by T S Rajam family members, fourth-generation descendants of TVS Group founder T V Sundaram Iyengar.

• Mr. Mahalingam Seturaman is the Chairman and Independent Director of the company. He is an associate member of ICAI and has been associated with the company since February 2015.
• Mr. R Dinesh is the Executive Vice Chairman and the fourth generation of TVS family members. He has been with the company since its inception and is in charge of its overall operations, including strategic growth initiatives and expansion plans.
• Mr. Ravi Viswanathan is the Managing Director in charge of strategy formulation and execution. Before joining TVS SCS, he worked in the TATA group for over 33 years, holding various positions in the Tata group of companies.
• Mr. Ravi Prakash is the Global CFO in charge of Group Finance and Controlling strategy and operational functions across all global entities. He has over 25 years of diverse experience in Finance and Strategy and has worked with global companies like Pfizer, Coca-Cola, and P&G India.
• Mr. E. Balaji is the Global Chief Human Resource Officer responsible for all HR strategic and transformative functions across business units.

The company has named CEOs for each region (India, Europe, and North America) and key business units (GFS and Rico), who are all in charge of the growth of their respective regions and business units.

Financials

Revenue

In FY22, the company’s total income was ₹9,299.9 crores. The following table shows the revenue distribution by geography and percentage share of revenue from operations.

EBIDTA

Profit After Tax

The company reported a net profit of ₹54.11 crores in 9MFY23, compared to a loss of ₹63.9 crores in the same period the previous year.

Return on Capital Employed (ROCE)

TVS Supply Chain Solutions Growth Potential

Supply chain and logistics management is one of the most underserved sectors of the Indian economy. The logistics cost in India is 13% of GDP, compared to 8% in the rest of the world, making Indian exports difficult to compete globally. And it’s highly fragmented and unorganized compared to developed markets.

Furthermore, supply chain solutions is a nascent market in India with approximately less than 5% penetration, compared to 11% in the developed market in FY22.

TVS SCS is more focused on the supply chain solutions market, which is more organized and has better growth potential compared with the logistics market. The supply chain solutions market is projected to grow at a CAGR of 22% between FY22 and FY27, compared to 6% for the logistics market.

Key factors that will drive growth in the supply chain solutions market:

• The manufacturing industry growing more rapidly, resulting in increasing complexity of supply chains
• Favorable policy support by the government (PM Gati Shakti, National Logistics Policy)
• Increased demand for customized supply chain solutions from large industry players
• Increasing need for data insight and other value-added services provided by supply chain solutions. For example, real-time tracking of products, demand forecasting, inventory planning, procurement management, etc.

What Makes TVS Supply Chain the Right Player at the Right Time?

TVS SCS is the pioneer in developing India’s supply chain solutions market. It introduced the concept of 4PL- Solutions provider administers the entire supply chain (around 2010) and integrated supply chain solutions (around 2015).

Over the years, through developing in-house expertise and strategic acquisitions of businesses, TVS SCS has become a leading and preferred player in the market. The company has made over 20 acquisitions globally over the last 16 years and successfully integrated these acquisitions into the businesses.

Factors that differentiate TVS SCSS from other players:

● TVS Group lineage, culture, and philosophy
● Asset-light operations
● Leader in end-to-end solutions enabled by domain expertise, global network, and knowledge base
● Strong in-house technology differentiation
● Long-term customer relationship. In FY22, the top 10 revenue customers had an average relationship length of 10.9 years in the ISCS segment and 10.5 years in the NS segment.
● Diversified revenue base. In FY22, the top 10 customers accounted for 25% of revenue.

Improving Margins

In the last three years, the company has registered notable improvement in margins. The ROCE has improved from negative 4.56% in FY22 to positive 6.95% in 9MFY23.

However, the company has a total debt of ₹1,860.8 crores on its book, and all the borrowings are related to working capital requirements. The debt-to-equity ratio at the end of 31st December 2022 stands at 2.42 times.

FAQs

Read more:  How Long-term investing helps create life-changing wealth – TOI.