Chennai-based TVS Supply Chain Solutions has resubmitted its draft red herring prospectus to the Securities and Exchange Board of India (Sebi) and scaled back the size of the offering to raise funds through a public offering.
According to news reports, the IPO, which was approved by Sebi last year, was delayed due to weak market conditions. The Sebi approval is due next month.
The company now plans to raise about Rs 750 crore through a new issue of Rs 2,000 crore. The company also cut its offering to 20 million shares from an earlier planned 59 million.
Among the OFS offering shares 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, and Sargunaraj Ravichandran will sell up to 5.80 lakh shares. Mahogany Singapore Company Pte Ltd, TVS Motor Company and Kotak Special Situations Fund will each sell up to 1 lakh OFS shares.
Proceeds from the new issue worth Rs 600 crore will be used to repay the debt of the company and its subsidiaries, TVS LI UK and TVS SCS Singapore. Its total consolidated borrowings as of December 2022 stand at Rs 1,860.84 crore.
JM Financial, Axis Capital, JP Morgan India, Edelweiss Financial, Equirus Capital and BNP Paribas are the lead managers for the offering.
For the nine months to December 2022, the company reported revenue of Rs 7,855.14 crore from Rs 6,696.69 crore a year earlier. Net profit for the period was Rs 54.13 crore, compared to a net loss of Rs 63.96 crore last year.
TVS Supply Chain is driven by the former TVS Group, one of the leading business groups in India, and is now part of 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 technology-enabled solutions. It has four business verticals – supply chain solutions, manufacturing, auto dealerships and aftermarket sales and services.