TVS SUPPLY CHAIN SEEKS APPROVAL FOR ₹2,000 CRORE PUBLIC LISTING

MUMBAI: TVS Supply Chain Solutions Ltd. has sought the Indian market regulator’s approval to raise as much as ₹2,000 crore ($264 million) selling new shares in an initial public offering.

The company’s existing shareholders, including founder TVS Mobility Pvt. Ltd, and investors Gateway Partners and Tata Capital Financial Services Ltd., plan to sell as many as 59.48 million shares in the IPO, according to a draft prospectus.

The Chennai-based company plans to repay some of its debt, and buy out minority shareholders in its UK unit from the proceeds.

TVS Supply Chain, which counts Mahindra & Mahindra Ltd, Daimler India Commercial Vehicles Pvt. Ltd, Sony India Pvt. Ltd and Hyundai Motor India Ltd. among its customers in India, has a presence in the UK, Spain, Germany, Australia and Singapore.

Direct spending in the Indian logistics market is estimated to double to $365 billion by the year to March 2026, TVS Supply Chain said in its draft prospectus, citing data from consultant RedSeer.

JM Financial Ltd, Axis Capital Ltd, JP Morgan India Pvt. Ltd, BNP Paribas, Edelweiss Financial Services Ltd. and Equirus Capital Pvt. Ltd are the banks managing the share sale.

Proceeds from the fresh issue to the tune of ₹1,166 crore will be used to repay debt and ₹75.2 crore will be deployed towards the capitalization of its strategically important subsidiaries in Germany, USA and Thailand.

Further, ₹60 crore will be infused in the company’s UK arm to increase its stake in Rico UK to 100% and the remaining amount from the net proceeds will be deployed towards inorganic growth and general corporate.

Delhivery Ltd, another Indian logistics firm, received the market regulator’s approval last month for an initial share sale to raise as much as ₹7,460 crore.

PTI contributed to this story.