TVS Supply Chain Solutions files DRHP with SEBI for IPO

The company will use large part of the net proceeds from the IPO to repay or prepay its outstanding borrowings. 

TVS Supply Chain Solutions Ltd (TVS SCS), a supply chain logistics solution provider having global capabilities and network across the value chain, has filed its Draft Red Herring Prospectus (DRHP) with market Securities and Exchange Board of India (SEBI) to raise capital through an Initial Public Offering (IPO). The IPO consists of fresh issue of equity shares aggregating up to ₹2,000 crore and an Offer for Sale of up to 59.48 million equity shares of face value ₹1 each by Promoter Selling Shareholders and Investor Selling Shareholders. The company will use large part of the net proceeds from the IPO (₹1,166 crore) 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 said.  The Company will also deploy ₹75.2 crore in fiscal 2023 towards the capitalisation of its strategically important subsidiaries in Germany, USA and Thailand, to tap the growth opportunities in these markets.  Further, ₹60 crore 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 will comprise of up to 20,000,000 equity shares by TVS Mobility Private Ltd (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 Ltf and Up to 4,183,297 equity shares by DRSR Logistics Service Private Ltd.