TVS Supply Chain Solutions submits new IPO proposals

TVS Supply Chain Solutions, part of TVS Mobility Group, has filed new IPO drafts with capital markets regulator Sebi, reducing the size of new issues to Rs 750 crore from previously planned Rs 2,000 crore.

The company, which received initial public offering (IPO) approval from Sebi in May 2022, has not floated the offering amid weak market conditions. It had previously submitted its draft papers in February 2022.

Under the rules, a company has one year to enter the primary market after receiving approval from the Securities and Exchange Board of India (Sebi). If a company does not initiate an IPO within this period, it must resubmit the prospectus to the regulator to obtain reapproval.

According to the draft Red Herring Prospectus (DRHP) uploaded to Sebi’s website on Wednesday, TVS Supply Chain Solutions’ first stock sale consists of a new issue of shares with a total value of up to Rs 750 crore and an Offer to Sell (OFS) of over 2 crore Shares from Existing Shareholders.

Those offering shares in 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 re-issuance will be used to pay debts of the Company, its subsidiaries – TVS LI UK and TVS SCS Singapore – and for general corporate purposes.

TVS Supply Chain Solutions (TVS SCS), a provider of integrated supply chain solutions, is present in over 25 countries.

Sponsored by the former TVS Group, TVS SCS 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 provider of supply chain logistics solutions can look back on a long track record
Acquisitions and their integration into own business. The company has acquired and
has successfully integrated over 20 acquisitions over the past 15 years, leveraging its acquisition strategy to acquire a customer base, geographic reach and technology capabilities.

TVS SCS has already raised Rs 4.18 crore in cash and a share swap through the purchase of a minority stake in its subsidiary White Data Systems through a private placement.

Marquee investors such as State Bank of India, Bajaj Holding, Hero Enterprises and
Cholamandalam Finance (via share swap) has now come on board.

JM Financial, Axis Capital, JP Morgan, BNP Paribas, Edelweiss Financial Services and Equirus are again the book-running lead managers.

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