TVS Supply Chain Solutions, a part of TVS Mobility Group, has received SEBI’s approval for an IPO launch. Subject to clearances, it could hit the market in August, it is learnt.
Chennai-based TVS Supply Chain Solutions had, in May, refiled the draft offer documents for its proposed IPO with the initial share-sale consisting of a fresh issue of equity shares aggregating up to Rs 750 crore and an offer for sale (OFS) of over 2 crore equity shares by promoters and existing shareholders.
It had earlier planned to raise up to ₹2,000 crore through the fresh issue. However, due to volatile market conditions, it has raised primary capital of ₹418 crore cash and a share swap through minority stake purchase of its subsidiary White Data Systems through private placement. Marquee investors such as State Bank of India, Bajaj Holding, Hero Enterprises, and Cholamandalam Finance (through share swap) have come on board now.
Another commitment of ₹100 crore has been received from a prominent family office in Mumbai for investment by Q1 of this year, as per market sources.
With ₹520 crore of funds raised and another ₹750 crore through fresh issue in the proposed IPO, the company looks to capitalise on growth opportunities.
The funds raised will be used for prepayment or repayment of all or a portion of certain outstanding borrowings of the company and its subsidiaries TVS LI UK and TVS SCS Singapore to the tune of around ₹600 crore, according to the document.
It is also understood that the promoters are not participating in the OFS, as the valuation did not meet their expectations. However, private equity investors like Omega TC Holdings and Tata Capital are participating in it.
According to sources, the company has grown in high double-digits and closed FY23 with around ₹10,300 crore revenue. The net profit of the organisation has also grown 20 per cent.
TVS SCS, an integrated supply chain solutions provider, is present in over 25 countries. It 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 company’s clients include Sony India Private Limited, Hyundai Motor India Limited, Ashok Leyland Limited and TVS Motor Company Limited, sources said.