TVS Supply Chain Solutions (TVS SCS), a division of TVS Mobility Group, has received approval from SEBI, the capital markets regulator, to raise funds through an initial public offering (IPO). The company, which provides supply chain logistics solutions, submitted its IPO documents to the Securities and Exchange Board of India (SEBI) in April of this year and received the observation letter on July 18. Notably, this will be the first TVS Group company to go public in the last 25 years.
According to the draft document filed with SEBI, the IPO includes issuing fresh equity shares worth up to ₹2,000 crore and an offer for sale (OFS) of up to 5.95 crore equity shares by the company’s promoters and existing investors. The entities participating in the OFS include Omega TC Holdings Pte. Ltd, Tata Capital Financial Services Ltd, Mahogany Singapore Company Pte. Ltd, TVS Motor Company Limited, Kotak Special Situations Fund, Andrew Jones, Ramalingam Shankar, Ethirajan Balaji, Dinesh Narayan, and Sargunaraj Ravichandran. TVS Supply Chain Solutions, headquartered in Chennai, plans to utilize more than half of the IPO proceeds from the fresh equity shares to repay loans and invest in its overseas operations. Additionally, a portion of the funds will be earmarked for strategic acquisitions.
TVS Supply Chain Solutions is a multinational company based in India with a market value of $1.2 billion. The company is a pioneer in the Indian supply chain solutions market and is recognized as one of the largest and fastest-growing integrated supply chain solutions providers in India, based on its fiscal 2021 revenues. With a workforce of over 18,000 employees, TVS SCS operates in more than 25 countries and serves 733 customers in India and 7,120 customers globally.
As per the document filed with SEBI, the company reported a net loss of ₹44.88 crore at the end of FY22, compared to a loss of ₹73.90 crore in the previous fiscal year. However, in the first half of FY23, TVS SCS turned profitable, recording a profit of ₹38.05 crore. Its revenue from operations also showed significant growth, reaching ₹9,250 crore in FY22, up by 33.4% from ₹6,934 crore in FY21. The strong performance continued in the first six months of FY23, with revenue from operations amounting to ₹5,419 crore, reflecting a 27.8% year-on-year (YoY) increase. Notably, revenue from the Indian operations grew by 52.3% YoY to ₹1,627 crore, while revenue from the global market rose by 19.6% YoY to ₹3,792 crore.
During FY22, TVS SCS reported Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA) of ₹613 crore, which decreased to ₹332 crore in H1FY23.
Recently, the company signed a significant business deal with Centrica Plc, an FTSE100 company known for operating British Gas, for their supply chain transformation. The deal is valued at approximately ₹2,000 crore and spans over a seven-year period