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TVS Supply Chain Solutions will bring 5000 crore IPO, documents filed with SEBI

TVS Supply Chain Solutions IPO: TVS Supply Chain Solutions is going to bring its Initial Public Offering (IPO). The company has filed a draft paper with the market regulator SEBI for this. The company wants to raise Rs 5000 crore through this IPO. According to the Draft Red Herring Prospectus (DRHP), fresh shares worth up to Rs 2,000 crore will be issued under this IPO. In addition, 5.95 crore equity shares will be sold under the Offer for Sale (OFS) by the promoters and existing investors of the company.

IPO related details

  • TVS Mobility, Omega TC Holdings Pte Ltd, Mahogany Singapore Company Pte Ltd, Tata Capital Financial Services Ltd and DRSR Logistics Services will sell the shares as part of the OFS.
  • According to market sources, the size of this IPO will be Rs 5,000 crore.
  • The company may consider pre-IPO placement. If such placement is completed, the new issue size will be reduced as per the draft papers.

Fund will be used here

  • Of the amount received from the fresh share, Rs 1,166 crore will be used to repay the loan.
  • Along with this, Rs 75.2 crore will be invested for capitalization of strategically important subsidiaries in Germany, USA and Thailand.
  • In addition, Rs 60 crore will be invested in the UK arm of the company to increase its stake in Rico UK to 100 per cent. The balance amount of the fund will be used for inorganic growth and general corporate purposes.

Know about the company

TVS Supply Chain Solutions (TVS SCS), an integrated supply chain solutions provider, is part of the TVS Mobility Group. The company has a presence in more than 25 countries. TVS SCS is promoted by erstwhile TVS Group and is now a part of TVS Mobility Group. It has four business verticals – Supply Chain Solutions, Manufacturing, Auto Dealerships and After Market Sales and Service.

The supply chain logistics solutions provider has a long track record of making acquisitions and integrating them into its business. The company has made and successfully integrated over 20 acquisitions over the past 15 years using its acquisition strategy to gain customer base, geographic reach and technological capability. JM Financial, Axis Capital, JP Morgan India, BNP Paribas, Edelweiss Financial Services and Equirus Capital are the book running lead managers of the IPO.

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