TVS SCS to raise 5,000cr via IPO
TVS Supply Chain Solutions (TVS SCS), part of TVS Mobility Group, has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO).
Mumbai: TVS Supply Chain Solutions (TVS SCS), part of TVS Mobility Group, has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO).
The company is likely to mop up Rs5,000 crore through the IPO, as per market sources. According to the information revealed by the market sources, it is going to be the largest logistics company IPO in recent years. Interestingly, it is after three decades when any vertical of the century old TVS group is coming up with an IPO, the sources familiar with the development told Bizz Buzz. TVS Motors had brought its IPO some 30 years back, the sources added. The initial share-sale consists of fresh issue of equity shares aggregating up to Rs2,000 crore and an Offer for Sale (OFS) of up to 5.95 crore equity shares by promoter and existing investors, according to the draft red herring prospectus (DRHP). Company aims to be among top 50 Global Supply Chain Solutions player by 2025. Those offering shares in the OFS are TVS Mobility, Omega TC Holdings PTE, Mahogany Singapore Company PTE Ltd, Tata Capital Financial Services and DRSR Logistics Service. The company may consider a pre-IPO placement aggregating up to Rs 400 crore. If such placement is completed, the fresh issue size will be reduced, as per the draft papers.
Proceeds from the fresh issue to the tune of Rs 1,166 crore will be used to repay debt and Rs 75.2 crore will be deployed towards the capitalisation of its strategically important subsidiaries in Germany, USA and Thailand. Further, Rs 60 crore will be infused in the company's UK arm to increase its stake in Rico UK to 100 per cent and the remaining amount from the net proceeds will be deployed towards inorganic growth and general corporate.
TVS Supply Chain Solutions (TVS SCS), an integrated supply chain solutions provider, is present in over 25 countries and has served more than 60 'Fortune Global 500 2021' clients during H1FY22. TVS SCS is promoted by the erstwhile TVS Group and is now part of the TVS Mobility Group, which has four business verticals -- supply chain solutions; manufacturing; auto dealership and aftermarket sales and service. The supply chain logistics solution provider has a long standing track record of making acquisitions and integrating them into its own business.