TVS Supply Chain Solutions (TVS SCS), which recently received approval from SEBI to launch its IPO, has filed an addendum to its previously submitted draft red herring prospectus (DRHP) with the market regulator, including the financial information for FY22 and H1FY23. The company originally submitted its IPO document with the market regulator in February 2022 to launch the first public offer by the TVS Group entity in three decades as TVS Electronic was the last company to go public in 1994. The IPO is expected to hit D-Street in the current quarter.
In its IPO filing addendum, the global supply chain solutions company said it posted a net loss of ₹44.88 crore in FY22 against a loss of ₹73.90 crore in the previous fiscal. However, the company, a part of the TVS Mobility Group, turned profitable in the H1FY23, with profit for the period at ₹38.05 crore against a loss of ₹57.78 crore in the same period last year.
The company’s revenue from operations surged 33.4% to ₹9,250 crore in FY22, from ₹6,934 crore in FY21. It continued stellar performance in six months of FY23 as well, generating revenue from operations of ₹5,419 crore, up 27.8% on a year-on-year (YoY) basis. The revenue from India operations grew 52.3% YoY to ₹1,627, while revenue from the global market rose 19.6% YoY to ₹3,792 crore, the company.
TVS SCS posted Earnings before Interest, Taxes, Depreciation, and Amortisation (EBITDA) of ₹613 crore during FY22 and ₹332 crore in H1FY23.
The supply chain logistics solution provider has filed documents with the SEBI to launch an IPO, which consists of a fresh issue of equity shares aggregating up to ₹2,000 crore and an OFS of up to 5.95 crore equity shares by the company's promoter and existing investors.
The company intends to use more than half of its IPO proceeds raised from the fresh equity shares to repay loans and invest in its overseas operations. It also plans to use a part of the fund for the purpose of strategic acquisitions.
TVS SCS, a $1.2 billion organisation, is an India-based multinational company, which pioneered the development of the supply chain solutions market in India. The company claimed to be amongst India’s largest and fastest growing integrated supply chain solutions provider in terms of revenues in fiscal 2021. With a workforce of over 18,000 employees, the company has presence in over 25 countries and it works with 733 customers in India and 7,120 customers globally.
As of September 30, 2022, TVS SCS has worked with 64 ‘Global Fortune 500 2021’ companies. As per the company, 75% of business comes from non-auto clients and 95% of business from non TVS group companies. TVS SCS has a long-term relationship with customers and the average period of relationship with the top 10 customers is 10—13 years.
Over the years, TVS SCS has acquired and successfully integrated 65 companies. It acquired companies for new capabilities, geographical expansion, and for building international networks for global forwarding solutions and domestic networks for last mile and time critical services.