TVS Supply Chain Solutions IPO to open from August 10

TVS Supply Chain Solutions is gearing up for the initial public offering (IPO) that will be open for public subscription from August 10 onwards, officials said on Wednesday. The company, which is a part of TVS Mobility Group, is the first company from the TVS group to hit the IPO market after 29 years, said Executive Vice-Chairman R Dinesh.

"I think the last time we (the TVS group) raised funds was in 1994," he told reporters.

IPO details 

The price band of the IPO has been fixed at Rs 187-197 for the Rs 880 crore worth of shares on offer, taking the valuation of the company to Rs 8,700 crore.

The initial share sale has a fresh issue of Rs 600 crore and a sale of Rs 280 crore by the promoters. The IPO would be open for subscription from August 10-14, he said.

At the upper end of the price band, the IPO is expected to fetch Rs 880 crore. From the issue's proceeds, Rs 525 crore will be used for pre-existing debt repayment and its subsidiary, TVS LI UK.

A portion of the fund would also be used for "inorganic growth" and general corporate purposes.

About the company 

According to Managing Director Ravi Vishwanathan, the company's gross debt was Rs 1,700 crore.

"Tomorrow is one of the important milestones in the journey of the company. The entire organisation is pretty excited about that IPO. The company works on the 3Cs capability, customer, and country," he said.

The UK accounts for a major chunk of the business at Rs 3,036 crore, followed by India at Rs 3,026 crore, and Rs 1,300 crore was contributed from Europe and Rs 790 crore from the United States of America, he said.

Dinesh said he was the fourth generation in the TVS family, and hitting the capital market does not change anything for the business group.

"The inherent nature of business for TVS continues," he said, indicating that his company has had large Fortune 500 companies as its customers for several years.

Asked whether there was pressure on the company to go for an IPO, he replied in the negative and said TVS Supply Chain Solutions was an "Indian multinational company".

JM Financial, Axis Capital, JP Morgan India, BNP Paribas, Nuvama Wealth Management, and Equirus Capital are the lead managers for the offering. 

(With PTI inputs)