A day before its initial public offering (IPO) opens for subscription, TVS Supply Chain Solutions has raised around ₹396 crore from 18 anchor investors, including . The anchor book was fully subscribed as the company allotted 2,01,01522 equity shares at ₹197 per share, the TVS Group company said in a release.
Last month, TVS Supply Chain, a part of TVS Mobility Group, received a green signal from capital markets regulator SEBI to raise funds through an IPO route, which is going to be the first public offer by the TVS Group entity in 25 years. The issue will open for subscription today and close on August 14, 2023. The price band of the issue has been fixed from ₹187 to ₹197 per equity share.
The supply chain logistics solution provider’s IPO comprises a fresh equity shares up to ₹600 crore and an offer for sale of 14,213,198 equity shares aggregating to around ₹880 crore (at the upper end of the band). The company, in consultation with the BRLMs, undertook a pre-IPO placement of 8,486,970 equity shares aggregating ₹150 crore on July 27, 2023, to several investors including SBI Life Insurance.
The key investors who participated in anchor book include Authum Investment and Infrastructure Limited ( Sanjay Dangi ); Societe Generale - ODI and Societe Generale; BNP Paribas Arbitrage; Aurigin Master Fund; Franklin India Flexicap Fund, Franklin India Taxshield, Franklin India Smaller Companies Fund; SBI Life Insurance Co. Ltd.; Tata Business Cycle Fund, Tata Multi Asset Opportunities Fund; Sundaram MF A/C Sundaram Infratructure Advantage Fund; Sundaram MF A/C Sundaram Balanced Advantage Fund; Sundaram MF - Sundaram Aggressive Hybrid Fund; India Opportunities Growth Fund - Pinewood Strategy; Winro Commercial - Rohit Kothari; and Copthall Mauritius Investment Limited.
Out of the total allocation, 76,26,828 equity shares (37.94% of the total allocation to anchor investors) were allocated to 3 domestic mutual funds through 8 schemes.
“These funds envisage a strong faith in the vision and growth of the company. The anchor book saw a participation from a wide variety of marquee investors, including several domestic mutual funds also participated in the fund raising round, and is a well-diversified book with a focus on long only investors,” says TVS Supply Chain Solutions.
The Chennai-based 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.
Several brokerage houses have recommended a ‘subscribe’ to the offer with a long-term investment horizon. TVS Supply Chain Solutions (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 a presence in over 25 countries and 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.
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