The Chennai headquartered supply chain logistics solutions provider TVS Supply Chain Solutions Limited, has filed papers with India’s market regulator SEBI to make an initial public offering (IPO). The company expects to raise Rs 2000 crore. The company has filed the Draft) Red Herring Prospectus (“DRHP) with SEBI.
The IPO consists of fresh issue of equity shares aggregating up to Rs. 20,000 million (The Fresh Issue”) and an Offer for Sale of up to 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”).