TVS Supply Chain Solutions IPO: All You Need To Know
The total issue size of the IPO offer is Rs 880 crore and will go live on Aug. 10 for a price band of Rs 187–197 per share.
TVS Supply Chain Solutions will launch its initial public offering on Aug. 10. The transportation, logistics, and warehousing firm plans to raise up to Rs 600 crore from fresh issues, as against Rs 750 crore decided earlier. The reduction in the fresh issue size was due to the pre-IPO placement carried out by the company.
It also plans to offload 1.42 crore equity shares offered by selling shareholders via a Rs 280 crore offer-for-sale. On the upper band price, the total issue size will stand at Rs 880 crore. The price band is fixed in the range of Rs 187–197 per share.
The bidding process for the Chennai-headquartered company will begin on Aug. 10 and end on Aug. 14, while the anchor book will begin on Aug. 9.
In the OFS segment, Omega TC Holdings PTE plans to sell up to 1.07 crore shares, Tata Capital Financial Services Ltd. up to 9.84 lakh shares, Sargunaraj Ravichandran up to 5.80 lakh shares, Andrew Jones up to 4 lakh shares, Ramalingam Shankar up to 3.15 lakh shares, and Ethirajan Balaji will sell around 2.5 lakh shares.
Out of the total IPO size, 75% is reserved for qualified institutional buyers, 15% for non-institutional investors, and the remaining 10% is to be allotted to retail individual investors.
Issue Details
Issue opens: Aug.10.
Issue closes: Aug. 14.
Fresh issue size: Rs 600 crore.
OFS Size: Rs 280 crore.
Total issue size: Rs 880 crore.
Face value: Re 1 apiece.
Fixed price band: Rs 187–197 per share.
Lot size: 76 shares.
Issue type: Book-built issue IPO.
Listing: NSE, BSE.
Shareholding Pattern
About The Business
TVS Supply Chain Solutions is a multinational corporation that specialises in supply-chain management for international organisations, government departments, and large and medium-sized businesses.
The firm is a part of the TVS Mobility Group and provides services in two categories:
Integrated supply-chain solutions
Network solutions
Sourcing and procurement, integrated transportation, logistics operation centres, in-plant logistics operations, finished goods, aftermarket fulfillment and supply-chain consulting are all part of the ISCS category.
While the NS segment comprises global forwarding solutions, encompassing end-to-end freight forwarding and distribution across ocean, air and land, warehousing and at-port storage, and value-added services, as well as time-critical final mile solutions, which include logistics and support such as spares logistics, refurbishment and engineering support, and courier and consignment management.
Globally, the company provided supply chain solutions to 8,788 customers in fiscal 2023, while it catered to 902 customers in India.
Customers include those in the automotive, industrial, consumer, technology and technology infrastructure, rail and utilities, and healthcare industries.
The company has over 27 million square feet of warehouse space, nine distribution centers, and a presence in 26 countries.
Use Of Proceeds
The funds raised will be employed for the following purposes:
Prepayment or repayment of all or a portion of outstanding borrowings owed by the company and its subsidiary, TVS Logistics Investment U.K.
General corporate purposes.
Risk Factors
The company gains around 18% and 28% of its revenue from its top five to 10 customers, respectively. Any loss of key customers could have an adverse impact on the finances.
Foreign currencies accounted for 70–80% of the sales over the last three years. Any significant depreciation in the value of the rupee against currencies the company transacts in may adversely affect operating results and margins.
Freight, clearing, forwarding and handling costs, as well as personnel expenses, account for a significant portion of the operating expenses, and any rise due to internal or external reasons may have an impact on cash flows and margin.
The company operates through an asset-light business model and depends on the warehousing and transportation needs of network partners and third parties.
It derived an average of 73% of its revenue from global operations in the UK, Europe, Australia, New Zealand, and North America over the last three years. This factor exposes the company to risks from local-law compliance.
As of March 31, the total borrowings stood at Rs 199 crore. The outstanding and future indebtedness may reduce funds available for future capital expenditures, acquisitions, and strategic investments.
Watch | IPO Adda with TVS Supply Chain Solutions' management.
