TVS Supply Chain Solutions (TVS SCS) has raised Rs 520 crore from a group of investors, including Hero Enterprise, Bajaj Holdings, and State Bank of India (SBI), in the past four months as it plans for an initial public offering (IPO). The company, a part of the TVS family, has sought approval from market regulator Sebi to raise up to Rs 750 crore through the IPO. Hero Enterprises invested around Rs 250 crore, SBI invested Rs 100 crore, and Bajaj invested Rs 50 crore, taking their stakes to around 4%, 1.5%, and less than 1%, respectively. Another prominent family office in Mumbai has committed Rs 100 crore for investment by Q1 of this year, as per sources.
Existing shareholders of TVS SCS, including parent group TVS Mobility and investors Tata Capital Financial Services and Omega TC Holdings, plan to sell as many as 20 million shares in the IPO. This is the first IPO by a TVS Family company in three decades, after TVS Electronic in 1994.
TVS Supply Chain had submitted its IPO document with Sebi in February 2022 to raise around Rs 2,000 crore, but the process was delayed due to market conditions. “To fuel its business expansion plans, TVS SCS has already raised primary capital of Rs 418 crore cash and a share swap through minority stake purchase of its subsidiary – White Data Systems from Cholamandalam Finance. Marquee investors such as State Bank of India, Bajaj Holding, and Hero Enterprises have come on board now,” said a source aware of the development.
The size of the IPO has reduced from the initially planned Rs 2,000 crore to Rs 750 crore, as the company has already raised Rs 520 crore. The size of offer for sale (OFS) has also reduced from 59.5 million equity shares by existing investors to 20 million now. TVS SCS is promoted by TVS Mobility Group, T S Rajam Rubbers, Dhinrama Mobility Solution, and Ramachandhran Dinesh. According to sources, some of the promoters, including Dinesh, are not participating in the IPO proceeds due to lower valuation.
