TVS Supply Chain files draft IPO papers again, lowers issue size

IPO

Chennai-based TVS Supply Chain Solutions has refiled its draft red herring prospectus with the Securities Exchange Board of India (Sebi) and cut the issue size for raising money through a public issue.

According to news reports, the IPO, which got approval from Sebi last year, was delayed due to weak market conditions. The Sebi nod will expire next month.

The company now plans to raise around Rs 750 crore through fresh issue from Rs 2,000 crore earlier. The firm also cut its offer for sale to 20 million shares from 59 million shares earlier planned.

Those offering shares in the OFS are Omega TC Holdings PTE Ltd, which will sell up to 15.86 million shares, Tata Capital Financial Services Ltd will sell up to 1.45 million shares, Sargunaraj Ravichandran will sell up to 5.80 lakh shares. Mahogany Singapore Company Pte Ltd,  TVS Motor Company and  Kotak Special Situations Fund will sell up to one lakh shares each in the OFS.

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 December 2022, its total borrowings on consolidated basis was at Rs 1860.84 crore.

JM Financial, Axis Capital, JP Morgan India, Edelweiss Financial, Equirus Capital and BNP Paribas are the lead managers to the issue.

For the nine months ended December 2022, the firm reported revenue of Rs 7855.14 crore from Rs 6696.69 crore a year ago. Net profit for the period stood at Rs 54.13 crore against net loss of Rs 63.96 crore last year.

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 firm has managed large and complex supply chains across multiple industries in India and selected global markets through customized tech-enabled solutions. It has four business verticals - supply chain solutions; manufacturing; auto dealership and aftermarket sales and service.