Chennai-based TVS Supply Chain Solutions Ltd has fixed the price band for its initial public offering Rs 187-197 a share. The issue will open for bidding on August 10 and close on August 14, while the anchor book will open on August 9.
Basis of allotment will be on August 22 and the equity shares are likely to be credited to depository accounts of allottees on August 23. The stock is scheduled to be listed on the bourses on August 24.
The company plans to raise around Rs 600 crore from fresh issues as against Rs 2,000 crore decided earlier. It has cut its offer-for-sale to 14.23 million shares from 59 million shares planned earlier.
On the upper band price, the total issue size stands at Rs 880 crore and the company is valued at Rs 9,200 crore.
In the OFS segment, Omega TC Holdings PTE Ltd will sell up to 10.73 million shares, Tata Capital Financial Services Ltd up to 9.84 lakh shares, Sargunaraj Ravichandran up to 5.80 lakh shares, Andrew Jones up to 4 lakh shares, Ramalingam Shankar up to 3.15 lakh shares and Ethirajan Balaji will sell up to 2.5 lakh shares.
The proceeds from the fresh issue worth Rs 600 crore will be used to repay debt by the company and its subsidiaries TVS LI UK and TVS SCS Singapore. As of March 2023, its total borrowings on consolidated basis was at Rs 1989.62 crore.
JM Financial, Axis Capital, JP Morgan India, Edelweiss Financial, Equirus Capital and BNP Paribas are the lead managers to the issue.
TVS Supply Chain is promoted by the erstwhile TVS Group, one of the reputed business groups in India, and are now part of the TVS Mobility Group. For more than 16 years, the company has managed large and complex supply chains across multiple industries in India and selected global markets through customised tech-enabled solutions. TVS Group has four business verticals - supply chain solutions, manufacturing, auto dealership, and aftermarket sales and service.
For FY23, the company reported a revenue of Rs 10,235.38 crore as against Rs 9,249.79 crore a year ago, while its net profit stood at Rs 41.76 crore as against a loss of Rs 45.80 crore last year.
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