TVS Supply Chain Solutions, part of TVS Mobility Group, has filed preliminary papers with capital markets regulator SEBI to raise funds through an initial public offering (IPO).
The initial share-sale consists of a fresh issue of equity shares aggregating up to Rs 2,000 crore and an Offer for Sale (OFS) of up to 5.95 crore equity shares by the promoter and existing investors, according to the draft red herring prospectus (DRHP).
Those offering shares in the OFS are TVS Mobility, Omega TC Holdings PTE Ltd, Mahogany Singapore Company PTE Ltd, Tata Capital Financial Services Ltd and DRSR Logistics Service. According to market sources, the size of the initial public offering will be Rs 5,000 crore.
The company may consider a pre-IPO placement aggregating up to 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, the 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. The company has acquired and successfully integrated over 20 acquisitions in the last 15 years, using its acquisition strategy to acquire a customer base, geographical reach and technological capability.
JM Financial, Axis Capital, J P Morgan India, BNP Paribas, Edelweiss Financial Services and Equirus Capital are the book running lead managers to the IPO.
