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TVS Supply Chain Solutions plans to go public and raise about Rs 880 crore. The subscription for the initial public offering will be open from August 10 to August 14, 2023. The price band is fixed at Rs 187 to Rs 197 per share.
Th IPO comprises of fresh issue of shares worth Rs 600 crore and offer for sale of 1,42,13,198 shares. The face values of share is Re 1 and size of one lot is 76 shares.
Company Summary
TVS Supply Chain Solutions Limited (TVSSCS) is India’s largest and among the fastest growing integrated supply chain solutions provider among Indian listed supply chain solutions companies in terms of revenues and revenue growth. The company’s total income stood Rs 1,03,110.10 million in fiscal 2023.
The company’s entire value chain can be divided into two segments: (i) integrated supply chain solutions (“ISCS”); and (ii) network solutions (“NS”). Its capabilities under the ISCS segment include sourcing and procurement, integrated transportation, logistics operation centers, in-plant logistics operations, finished goods, aftermarket fulfillment and supply chain consulting.
The company’s capabilities under the NS segment include global forwarding solutions, which involves managing end-to-end freight forwarding and distribution across ocean, air and land, warehousing and at port storage and value added services, and time critical final mile solutions which involves closed loop logistics and support including spares logistics, break-fix, refurbishment and engineering support, and courier and consignment management.
The company manages warehousing space of more than 27 million sq.ft. and has nine national distribution centres. As of March 31, 2023, the company has operations in 26 countries and serves 72 Fortune Global 500 companies.
The company has developed in-house software suite which includes: i-Loads, Visibility, TRACE, LCL Consolidator (mobile application), e-Connect, Msys.
The company’s clients include Sony India Private Limited (12 years), Hyundai Motor India Limited (13 years), Johnson Controls-Hitachi Air Conditioning India Limited (3 years), Ashok Leyland Limited (17 years), TVS Motor Company Limited (17 years), Diebold Nixdorf (8 years), TVS Srichakra Limited (10 years), Lexmark International Technology Sarl (6 years), VARTA Microbattery Pte Ltd (7 years), Daimler India Commercial Vehicles Private Limited (12 years), Hero MotoCorp Limited (8 years), Modicare Limited (7 years), Panasonic Life Solutions India Private Limited (12 years), Dennis Eagle Limited (17 years), Electricity North West Limited (5 years), Yamaha Motor India Private Limited (7 years) and Torrot Electric Europa, S.A. (3 years).
Company Financials
| Period Ended | FY23 | FY22 | FY21 |
| Total Assets (Rs in crore) | 6,210.92 | 5,789.73 | 4,990.06 |
| Total Revenue (Rs in crore) | 10,311.01 | 9,299.94 | 6,999.69 |
| Net Worth (Rs in crore) | 723.55 | 714 | 490.69 |
| Total Borrowing (Rs in crore) | 774.19 | 713.76 | 473.94 |
| EBITDA (Rs in crore) | 683.65 | 612.56 | 386.69 |
| EBITDA Margin | 6.68% | 6.62% | 5.58% |
| Profit After Tax (Rs in crore) | 41.76 | -45.8 | -76.34 |
| ROCE (%) | 7.64% | 6.65% | -4.56% |
| ROE (%) | 5.50% | -6.88% | -15.15% |
Company Strengths
- Scalable operations in a fast-growing and fragmented third-party logistics market in India.
- Leader in end-to-end solutions enabled by domain expertise, global network and knowledge base.
- Robust in-house technology differentiation.
- Consistent track-record of successful integration of acquisitions to support capabilities and customer acquisitions.
- Long-term customer relationship in diversified industries through encirclement.
- Resilient business model with multiple drivers of profitable growth.
- Strong management team with cross industry experience.
Purpose of the IPO
- The logistics company plans to utilise the net proceeds from fresh issue of shares towards prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company and its subsidiary, TVS LI UK, aggregating to Rs 525 crore.
- The net proceeds will also be used for general corporate purposes.
- In addition, the company expects to achieve the benefits of listing of the equity shares on the stock exchanges resulting in the enhancement of their brand name and creation of a public market for their equity shares.
Company Promoters
TVS Mobility Private Limited, T.S. Rajam Rubbers Private Limited, Dhinrama Mobility Solution Private Limited, and Ramachandhran Dinesh.
IPO Details
IPO Subscription Date | August 10 to August 14, 2023 |
Face Value | Re 1 per share |
Price Band | Rs 187 to Rs 197 per share |
Lot Size | 76 shares |
Total Issue Size | Rs 880 crore |
Fresh Issue | Rs 600 crore |
Offer for Sale | 1,42,13,198 shares of Re 1 |
Issue Type | Book Built Issue IPO |
Listing At | BSE, NSE |
IPO Lot Size
Application | Lots | Shares | Amount |
Retail (Minimum) | 1 | 76 | Rs 14,972 |
Retail (Maximum) | 13 | 988 | Rs 1,94,636 |
Small HNI (Minimum) | 14 | 1,064 | Rs 2,09,608 |
Small HNI (Maximum) | 66 | 5,016 | Rs 9,88,152 |
Large HNI (Minimum) | 67 | 5,092 | Rs 10,03,124 |
Allotment Details
Allotment of Shares | August 18, 2023 |
Initiation of Refunds | August 21, 2023 |
Credit of Shares to Demat Account | August 22, 2023 |
Listing Date | August 23, 2023 |
To check allotment, click here