TVS Supply Chain Solutions, part of TVS Mobility Group, has re-filed draft IPO papers with capital markets regulator Sebi and cut the fresh issuance size to Rs 750 crore from Rs 2,000 crore planned earlier.
The company, which got approval from Sebi in May 2022 to float the initial public offering (IPO), did not launch the issue amid weak market conditions. It had earlier filed its draft papers in February 2022. As per the rules, a firm gets one year to hit the primary market after receiving approval from the Securities and Exchange Board of India (Sebi). In case a firm fails to launch an IPO during this period, it has to refile the prospectus with the regulator to seek fresh clearance. According to the draft red herring prospectus (DRHP) uploaded on Sebi’s website on Wednesday, TVS Supply Chain Solutions’ initial share sale consists 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 existing shareholders.
Those offering shares 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. Proceeds from the fresh issue will be utilised for payment of debt availed by the company, its subsidiaries — TVS LI UK and TVS SCS Singapore — and for general corporate purposes. Earlier, the company’s proposed IPO comprised a fresh issue of equity shares worth Rs 2,000 crore and an OFS of up to 5.95 crore equity shares.
TVS Supply Chain Solutions (TVS SCS), an integrated supply chain solutions provider, is present in over 25 countries. TVS SCS 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 supply chain logistics solution provider has a long-standing track record of making acquisitions and integrating them into its own business. The company has acquired and successfully integrated over 20 acquisitions in the last 15 years, using its acquisition strategy to acquire a customer base, geographical reach, and technological capability.
TVS SCS has already raised primary capital of Rs 418 crore cash and a share swap through a 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 (by share swap) have come on board now. JM Financial, Axis Capital, JP Morgan, BNP Paribas, Edelweiss Financial Services, and Equirus are the book-running lead managers this time too.
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