Mumbai: TVS Supply Chain Solutions, a part of Chennai-based conglomerate TVS group, is filing its draft red herring prospectus for the initial public offering this week to raise around ₹5,000 crore, bankers told ET.
The IPO consists of a fresh issue of ₹2,000 crore and an offer for sale (OFS) of up to ₹3,000 crore, said bankers. Promoters and private equity players will sell part of their stake in the OFS. Tata Opportunities Fund, Mitsubishi Corporation, Gateway Partners, and Exor are some of the investors in the company.
TVS Supply Chain did not respond to ET’s queries.
TVS Supply Chain Solutions becomes the third logistics sector company to enter the primary market this year. In November 2021, Delhivery had filed its DRHP with the market watchdog for its ₹7,460 crore IPO. It received a regulatory nod in January.
Delhi-based logistics and warehousing firm Ecom Express is likely to file its DRHP soon to raise ₹4,800 crore.
TVS Supply Chain Solutions is a third-party logistics services provider with global operations. The company’s revenue has grown at 36% CAGR since its inception in 2004 to over $ 1 billion in FY21, while its operating profits have risen 37% CAGR for the last 15 years.
The company, which has a presence in over 20 countries with a workforce of more than 17,000 workers, gets 75% business from non-auto clients and 95% business from non-TVS group companies
TVS Supply Chain Solutions was started as TVS Logistics in 1995 before being hived off as a separate company in 2004.
Last September, Kotak Special Situations Fund – managed by Kotak Investment Advisors – invested ₹1,000 crore in TVS Supply Chain Solutions.
Source : Economic Times
