Mumbai TVS Supply Chain Solutions Ltd. on Sunday filed draft documents with the market regulator for initial share sale through which the logistics arm of the diversified TVS Group would seek to raise. New capital of Rs 2,000 crore, while some existing shareholders will also reduce their stake.
TVS Supply Chain Solutions is part of the TVS Mobility Group comprising four business verticals – Supply Chain Solutions, Manufacturing, Auto Dealerships and Aftermarket Sales & Service. It provides customized solutions to enable agile and efficient supply chain to the clients at large scale. According to the draft initial public offering (IPO) document, the company operates in over 25 countries, serving over 60 ‘Fortune Global 500 2021’ customers in the first half of this fiscal year through March.
The IPO will consist of a fresh issue of equity shares in total 2,000 crore and secondary share sale of 59.48 million shares.
The secondary share sale will include the sale of 20 million shares by promoter TVS Mobility Pvt. Ltd., 15.85 million shares by Omega TC Holdings Pte. Ltd., 12.54 million shares by Mahogany Singapore Company Pte. Ltd., 1.45 million shares by Tata Capital Financial Services Limited and 4.18 million shares by DRSR Logistics Services Pvt. Ltd.
The fresh capital raised through the IPO will be used to fully repay certain outstanding borrowings taken by the company and its entities TVS LI UK and TVS SCS Singapore. The funds will also be used for the acquisition of minority stake from existing shareholders of its entity Rico Logistics Limited, UK, capitalization and inorganic growth initiatives of subsidiaries TVS SCS Germany, TVS LI USA and TLM Thailand.
TVS Supply Chain Solutions includes Mahindra & Mahindra Ltd., Sony India, Hyundai Motor India, Johnson Controls-Hitachi Air Conditioning India, Ashok Leyland Ltd., TVS Motor Company, Hero MotoCorp and Panasonic Life Solutions India. The company reported revenue from the operations of 4,240.1 crore and a loss of 58.7 crore during the six months ended 30 September 2021. Investment banks JM Financial, Axis Capital and JP Morgan are advising the company on the IPO.
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