After receiving a final nod for its rearrangement, the TVS Supply Chain Solutions Ltd.- a part of the 15000 crore TVS Mobility Group plans to come out with an initial public offering (IPO). The company has sought the Indian market regulator’s approval to raise as much as 20 billion rupees ($264 million) selling new shares in an IPO.
The company’s existing shareholders, including founder TVS Mobility Pvt. and investors Gateway Partners and Tata Capital Financial Services Ltd., plan to sell as many as 59.48 million shares in the IPO, according to a draft prospectus.
“The prepayment or scheduled repayment will assist the Company in maintaining a favorable debt to equity ratio and enable utilization of internal accruals for further investment in business growth and expansion,” the company said.
The Chennai-based company plans to repay some of its debt, and buy out minority shareholders in its U.K. unit from the proceeds. Around, ₹75.2 crores in fiscal 2023 will be deployed by the company towards the capitalization of its strategically important subsidiaries in Germany, the USA, and Thailand, tapping the growth opportunities of the said markets. Following this, ₹60 crores will be used in the company’s UK division to increase its stake in Rico UK to 100%. And, the remaining amount from the net proceeds will be deployed towards inorganic growth and general corporate purposes
With a presence in countries like the UK, Spain, Germany, Australia, and Singapore, TVS Supply Chain, counts industry giants such as Mahindra & Mahindra Ltd., Daimler India Commercial Vehicles Pvt., Sony India Pvt. and Hyundai Motor India Ltd. among its customers in India.
Citing data from consultant RedSeer, TVS supply chain in a draft prospectus said the direct spending in the Indian logistics market is estimated to double to $365 billion by the year to March 2026.
The share sale will be managed by banks namely, JM Financial Ltd., Axis Capital Ltd., J.P. Morgan India Pvt., BNP Paribas, Edelweiss Financial Services Ltd., and Equirus Capital Pvt.