The company will use a major portion of the net proceeds from the IPO to repay or pre-pay its outstanding borrowings.
The company will use a major portion of the net proceeds from the IPO to repay or pre-pay its outstanding borrowings.
TVS Supply Chain Solutions Limited (TVS SCS), a supply chain logistics solutions provider with global capabilities and network across the value chain, has filed its draft red herring with the Securities and Exchange Board of India (SEBI) to raise capital. Prospectus (DRHP) has been filed. through an initial public offering (IPO). The IPO consists of a fresh issue of equity shares of up to ₹2,000 crore and an offer for sale of 59.48 million equity shares of face value by promoter selling shareholders and investor selling shareholders. The company will use a major portion of the net proceeds from the IPO (₹1,166 crore) to pay off or prepay its outstanding borrowings. “Prepayment or scheduled repayment will help the company maintain a favorable debt to equity ratio and enable utilization of internal accruals for further investments in the growth and expansion of the business,” the company said. The company will also deploy Rs 75.2 crore in FY 2023 to capitalize on its strategically important subsidiaries in Germany, the US and Thailand to tap the growth opportunities in these markets. In addition, ₹60 crore will also be invested in the UK arm of the company, to increase its stake in Ricoh UK to 100%. Finally, the balance from net income will be deployed for inorganic growth and general corporate purposes. The offer for sale will consist of 20,000,000 equity shares held by TVS Mobility Private Limited (Promoter Selling Shareholder); Up to 15,858,470 equity shares held by Omega TC Holdings Pte. Ltd.; Up to 12,549,890 Equity Shares by Mahogany Singapore Company Pte. Ltd., up to 1,454,880 equity shares by Tata Capital Financial Services LTF and up to 4,183,297 equity shares by DRSR Logistics Services Pvt Ltd.