TVS Supply Chain Solutions, part of TVS Mobility Group, on Monday fixed the price band of Rs 187-197 for its Rs 880-crore initial public offering (IPO), valuing the company at Rs 8,700 crore.
The initial share sale, comprising Rs 600 crore of fresh issue and Rs 280 crore of offer-for-sale by promoters, will be open for public subscription during August 10-14 and the bidding for anchor investors will open on August 9, the management said here. The promoter entity of TVS Motors will sell 10 per cent of their holdings paring it to 42 per cent post issue. One of the external investors Tata Capital, which entered in 2015, will offload its 4 per cent holding retaining just about a quarter of a percentage post issue, the management said.
Others offering shares in the OFS include Omega TC Holdings and Kotak Special Situations Fund, chief financial officer Ravi Prakash Bhagavathula told PTI, adding the IPO values the company, which is the largest 3PL player from the country in the overseas market, at Rs 8,700 crore. At the upper end of the price band, the IPO is expected to fetch Rs 880 crore and Rs 525 crore from the issue proceeds will be used for debt repayment of the company and its British subsidiary TVS LI UK. Besides, a portion of the fund will also be used for inorganic growth strategy and general corporate purposes. The company has been growing exponentially with revenue scaling to Rs 10,350 crore in FY23, from which it had earned Rs 41.7 crore in net income, from Rs 9,249 in FY22, which was Rs 6,090 crore in FY21, when it had net loss.
Managing director Ravi Vishwanathan told PTI that England is its largest market with a little over 30 per cent of total earnings at Rs 3,036 crore in FY23, closely followed by the home market chipping in with Rs 3,026 crore and Rs 1,300 crore from rest of Europe and Rs 790 crore from the US. The company has over 27 million square feet of warehousing space managed by over 17,900 employees across 26 countries, making it the largest logistics player from the country to have overseas presence. The company said 75 per cent of the issue size has been reserved for qualified institutional investors, 15 per cent for non-institutional investors and the remaining 10 per cent for retail. Further, investors can bid for a minimum of 76 shares and in multiples thereof.
TVS Supply Chain Solutions is present in over 25 countries. The company is promoted by erstwhile TVS Group and is now part of TVS Mobility Group, which has four business verticals — supply chain, manufacturing, auto dealership, and aftermarket sales and service.
