TVS Supply Chain Solutions files Draft Red Herring Prospectus with SEBI

TVS Supply Chain Solutions Limited, part of Chennai-based TVS group, the only differentiated Indian supply chain logistics solution provider to have global capabilities and network across the value chain, has filed its Draft Red Herring Prospectus with market regulator Securities and Exchange Board of India (“SEBI”).

TVS SCS is an India-based multinational company, in the development of supply chain solutions market in India.

The IPO consists of fresh issue of equity shares aggregating upto Rs. 20,000 crore and an Offer for Sale of upto 5.95 crore equity shares of face value Re 1 each by promoter selling shareholders and investor selling shareholders.

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.

The Company will use a majority of the net proceeds from the IPO (Rs. 1,166 crore) to repay or prepay its outstanding borrowings. The prepayment or scheduled repayment will assist the Company in maintaining a favourable debt to equity ratio and enable utilization of internal accruals for further investment in business growth and expansion.

The Company will also deploy Rs. 75.2 crore in fiscal 2023 towards the capitalisation of its strategically important subsidiaries in Germany, USA and Thailand, to tap the growth opportunities in these markets.

Further, Rs 60 crore will also be infused in the Company’s UK arm, to increase its stake in Rico UK to 100 percent. The remaining amount from the net proceeds will be deployed towards inorganic growth and general corporate purposes.

The offer for sale shall comprise of up to 20,000,000 equity shares by TVS Mobility Private Limited; up to 15,858,470 equity shares by Omega TC Holdings PTE. Ltd; up to 12,549,890 equity shares by Mahogany Singapore Company PTE. Ltd, up to 1,454,880 equity shares by Tata Capital Financial Services Limited and up to 4,183,297 equity shares by DRSR Logistics Service Private Limited.

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.

TVS SCS 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 customer base, geographical reach and technological capability.

JM Financial Limited, Axis Capital Limited, J. P. Morgan India Private Limited, BNP Paribas, Edelweiss Financial Services Limited and Equirus Capital Private Limited are the Book Running Lead Managers to the IPO.

Published on: Sunday, February 13, 2022, 04:39 PM IST