TVS Supply Chain Solutions Limited (“TVS SCS” or “Company”), the only differentiated Indian supply chain logistics solution provider to have global capabilities and network across the value chain, has filed its Draft Red Herring Prospectus (“DRHP”) with market regulator Securities and Exchange Board of India (“SEBI”).
TVS SCS is an India based multinational company, who pioneered the development of the supply chain solutions market in India. It is among India’s largest and fastest growing integrated supply chain solutions provider in terms of revenues in Fiscal 2021. For the last 15 years, the Company has managed large and complex supply chains across multiple industries in India and select global markets through customized tech-enabled solutions. The Company has a marquee client base across the world – it is present in over 25 countries, and has served more than 60 ‘Fortune Global 500 2021’ clients during H1FY22.
The IPO consists of fresh issue of equity shares aggregating upto Rs. 20,000 million (The Fresh Issue”) and an Offer for Sale of upto 59.48 million equity shares of face value Rs. 1 each by Promoter Selling Shareholders and Investor Selling Shareholders.(The“Offer for Sale”)
The Company will use a majority of the net proceeds from the IPO (Rs. 11,660 million) to repay or prepay its outstanding borrowings. The prepayment or scheduled repayment will assist the Company in maintaining a favourable debt to equity ratio and enable utilization of internal accruals for further investment in business growth and expansion. The Company will also deploy Rs. 752 million in Fiscal 2023 towards the capitalization of its strategically important subsidiaries in Germany, USA and Thailand, to tap the growth opportunities in these markets. Further, Rs. 600 million will also be infused in the Company’s UK arm, to increase its stake in Rico UK to 100%. Finally, the remaining amount from the net proceeds will be deployed towards inorganic growth and general corporate purposes.
The offer for sale shall comprise of up to 20,000,000 equity shares by TVS Mobility Private Limited (“Promoter Selling Shareholder”); Up to 15,858,470 equity shares by Omega TC Holdings PTE. Ltd; Up to 12,549,890 equity shares by Mahogany Singapore Company PTE. Ltd, Up to 1,454,880 equity shares by Tata Capital Financial Services Limited and Up to 4,183,297 equity shares by DRSR Logistics Service Private Limited (Collectively, The “Investor Selling Shareholder”).
TVS SCS 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 customer base, geographical reach and technological capability.
JM Financial Limited, Axis Capital Limited, J. P. Morgan India Private Limited, BNP Paribas, Edelweiss Financial Services Limited and Equirus Capital Private Limited are the Book Running Lead Managers to the IPO.