TVS Supply Chain Solutions IPO: TVS Supply Chain Solutions on Sunday submitted draft papers for its IPO with market regulator SEBI. Through this, the logistics company of the diversified TVS Group will raise fresh capital of Rs 2,000 crore, while some existing shareholders will also sell their stake.
Operation in more than 25 countries
TVS Supply Chain Solutions is part of the TVS Mobility Group, which comprises four business verticals – supply chain solutions, manufacturing, auto dealerships and aftermarket sales and service. It offers customized solutions to its customers to enable fast and efficient supply chain at scale. According to the draft IPO document, the company has operations in over 25 countries, serving over 60 ‘Fortune Global 500, 2021’ customers during the first half of the fiscal year ending March.
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Along with the new issue, the company will also do secondary sale of shares.
The IPO will involve fresh issue of equity shares totaling Rs 2,000 crore and secondary sale of up to 5.948 crore shares. The promoter in the secondary sale is TVS Mobility Pvt. Ltd. 2 crore shares of Omega TC Holdings Pvt. Ltd. 1.585 crore shares of Mahogany Singapore Company Pvt. Ltd. 1.254 crore shares by and DRSR Logistics Pvt. Ltd. will involve secondary sale of shares up to Rs. 41.8 crore.
There is also a plan to repay the loan
The capital raised through the IPO will be used to fully or partially repay the outstanding debt of the company and its TVS LI UK and TVS SCS Singapore units. The fund was transferred to its unit Ricoh Logistics Ltd. It will be used to purchase minority stakes from existing shareholders, capitalization and inorganic growth initiatives of subsidiaries TVS SCS Germany, TVS LI USA and TLM Thailand.
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Customers include many big companies
TVS Supply Chain Solutions customers include Mahindra & Mahindra, Sony India, Hyundai Motor India, Johnson Controls-Hitachi Air Conditioning India, Ashok Leyland Limited, TVS Motor Company, Hero MotoCorp and Panasonic Life Solutions India.
The company had reported a loss of Rs 58.7 crore with revenue of Rs 4,240.1 crore for the half year ended September 30, 2021. Investment banks Equirus Capital, JM Financial, Axis Capital and JP Morgan are advising the company for the IPO.
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