TVS Supply Chain Solutions Ltd filed draft papers with the market regulator for an initial share sale through which the logistics arm of diversified TVS group will seek to raise ₹2,000 crore of fresh capital. The IPO will consist of a fresh issue of equity shares totalling up to ₹2,000 crore and a secondary share sale of up to 59.48 million shares. The secondary share sale will comprise sale of up to 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 Ltd and 4.18 million shares by DRSR Logistics Service Pvt. Ltd. The fresh capital to be raised through the IPO will be used to repay fully or a portion of certain outstanding borrowings availed by the company and its units TVS LI UK and TVS SCS Singapore. The funds will also be used to buy a minority stake from the existing shareholders of its unit Rico Logistics Ltd, UK, capitalization of subsidiaries TVS SCS Germany, TVS LI USA and TLM Thailand and for inorganic growth initiatives. Investment banks JM Financial, Axis Capital and JP Morgan are advising the company on the IPO.
TVS Supply Chain Solutions is part of the TVS Mobility Group that comprises four business verticals which are supply chain solutions, manufacturing, auto dealership and aftermarket sales and service. It offers customized solutions to customers to enable agile and efficient supply chains at large scale. The company operates in more than 25 countries, catering to more than 60 ‘Fortune Global 500 2021’ clients in the first half of this financial year through March. It counts Mahindra & Mahindra Ltd, Sony India, Hyundai Motor India, Johnson Controls-Hitachi Air Conditioning India, Ashok Leyland Limited, TVS Motor Company, Hero MotoCorp and Panasonic Life Solutions India among its customers. The company reported revenue from operations of ₹4,240.1 crore and a loss of ₹58.7 crore during the six months ended 30 September 2021.