Brand TVS known for supporting stakeholders, says TVS SCS's R Dinesh

'Diversified biz helped amid UK market crisis'

TVS Supply Chain Solutions (TVS SCS), which on Thursday will come up with the first initial public offering (IPO) by a TVS family company in three decades, said it got insulated by the economic crisis in the United Kingdom.

This was due to its diversified portfolio in the UK market, which is its largest revenue contributor at Rs. 3,036 crore.

Highlighting the brand, R Dinesh, executive vice-chairman of the company, said, TVS is all about supporting its stakeholders. And, the IPO will not make any change in the inherent value of brand TVS and its functioning.

“I don’t think an IPO changes anything for the company. Inherent nature of the business and values continue. We are today engaged with Fortune 500 companies. They may be at ease in dealing with a public company,” said Dinesh.

“I think expectations don’t change whether it is public or private. TVS is all about supporting its stakeholders,” he added.  

TVS SCS, a part of the Rs. 15,000 crore TVS Mobility Group,

has fixed a price band of Rs. 187-197 for its IPO. The IPO, which comprises a fresh issue and an offer for sale (OFS), will open on August 10 and close on August 14.

The total issue size stands at Rs. 880 crore, including a fresh issue aggregating up to Rs. 600 crore and an OFS of 14.23 million equity shares.

At present, the UK market contributes to a majority share of its revenue, followed by India.

During the financial year 2022-23, the company’s revenue saw an 11 per cent increase from Rs. 9,249.79 crore last year to Rs. 10,235.38 crore.

“The UK market is only Rs. 10 crore more than India in terms of revenue. It is Rs. 3,036 crore for the UK and Rs. 3,026 for our India business. Like last year, we never saw such inflation ever before in the Western world. In the light of that also, we are growing. That credibility comes because we are diversified,” said Ravi Viswanathan, managing director, TVS SCS. 

“We have made inroads into defence, health care, which is a sunshine sector. Our diversified portfolio helped us manage it. Very strong customers coupled with portfolio diversification helped us stay insulated,” he added

Out of the total portfolio of customers, around 35.35 per cent are from the industrial segment. This is followed by auto with 23.17 per cent and tech and tech infra with 11.9 per cent.

It is also expecting a good share in the e-commerce segment. 

By the end of last financial year, its borrowing was Rs. 1,989 crore.

The company is planning to utilise an amount of up to Rs. 525 crore from net proceeds, It will be towards prepayment or scheduled repayment of all or a portion of term loans and working capital availed by it and a term loan availed by its subsidiary, TVS LI UK.