TVS Supply Chain public issue on August 10, price band set at Rs 187-197

In the first initial public offering (IPO) by a TVS family company in three decades, TVS Supply Chain Solutions (TVS SCS) – part of the Rs 15,000 crore TVS Mobility Group and one of the largest companies under the TVS fold – has fixed a price band of Rs 187-197 for its IPO. The issue, which comprises a fresh issue and an offer for sale, will open on August 10 and close on August 14.

The total issue size is set at Rs 880 crore, including fresh issue aggregates up to Rs 600 crore, and an offer for sale of 14.23 million equity shares. Through the offer for sale, Omega TC Holdings plans to offload 10.73 million shares and Tata Capital Financial Services another 984,000 shares. Other shareholders participating in the sale include Sargunaraj Ravichandran selling 580,000 shares, Andrew Jones with 400,000 shares, Ramalingam Shankar with 315,000 shares, and Ethirajan Balaji with 250,000 shares. The bidding window for anchor investors will open on 9 August.

"We are the fastest-growing integrated supply chain solutions company in India. Around 32 per cent of our business comes from industrial customers, 22 per cent from the automobile sector, and 12 per cent from retail. The IPO proceeds will be used to reduce debt. Once we reduce the debt portfolio, there will be a lot of room to grow," said Ravi Viswanathan, managing director, TVS SCS. Proceeds from the fresh issue will be used to repay debt held by the company and its subsidiaries, TVS LI UK and TVS SCS Singapore. As of the end of the previous financial year, its borrowing stood at Rs 1,989 crore.

The company noted that bids can be made for a minimum of 76 equity shares and in multiples of 76 equity shares thereafter. JM Financial Limited, Axis Capital, JP Morgan India, BNP Paribas, Nuvama Wealth Management (formerly known as Edelweiss Securities), and Equirus Capital are acting as the book running lead managers to the offer. During the financial year 2022-23, the company's revenue saw an 11 per cent increase from Rs 9,249.79 crore the previous year to Rs 10,235.38 crore.

TVS SCS originally submitted its IPO document with the market regulator in February 2022 to raise around Rs 2,000 crore but it was delayed due to less than favourable market conditions. TVS SCS is promoted by TVS Mobility Group, T S Rajam Rubbers, Dhinrama Mobility Solution, and Ramachandhran Dinesh.