TVS SCS, a company, plans to generate Rs 880 crore through its initial public offering (IPO) with the objective of reducing debt and fueling growth. By issuing shares of Rs 600 crore and utilizing existing funds, the company aims to completely pay off its long-term debts. The IPO, scheduled from August 10th to 14th, signifies TVS Groups’ re-entry, into the market after a span of 29 years. This move is being facilitated by lead managers, in the industry.
TVS SCS, a global leader, is set to raise Rs 880 crore through its IPO, targeting debt reduction and growth acceleration. With a pioneering Rs 600 crore fresh issue and previous funds, the company aims to retire its entire long-term debt. The IPO, spanning August 10-14, marks TVS Group’s return to the public domain after 29 years, driven by top-tier lead managers.
TVS Supply Chain Solutions (TVS SCS) announced its Rs 880-crore initial public offering (IPO) proceeds would be directed towards debt repayment. With a debt of Rs 1,700 crore on its books, the company plans to use the Rs 600 crore raised from the IPO’s share issuance to reduce its debt burden. Alongside the fresh funds, an additional Rs 417 crore was secured before the IPO. This combined influx of Rs 1,017 crore is poised to retire all existing long-term debts, substantially boosting the company’s growth prospects.
R Dinesh, the executive vice-chairman of TVS SCS, emphasized the strategic advantage of going public for a global entity like theirs. He highlighted that being a publicly traded company amplifies engagement with diverse clients and magnifies exposure, citing it as a robust asset.
For its IPO, the company set a price range of Rs 187 to Rs 197 per equity share. The Rs 880-crore IPO structure comprises a fresh issue component of up to Rs 600 crore, coupled with an offer for sale totaling up to Rs 280 crore. This offer for sale encompasses 1,07,34,565 shares by Omega TC Holdings, 9,84,823 shares by Tata Capital Financial Services, 1,00,000 shares by Kotak Special Situations Fund, and 1,00,000 shares by TVS Motor Company.
The IPO’s timeline spans from its opening on Thursday, August 10, to its closure on Monday, August 14.
Dinesh underscored the significance of this IPO, marking the TVS Group’s return to the public market after a hiatus of 29 years. He acknowledged the collective goodwill and anticipation of those connected to the TVS Group, emphasizing that the company’s fundamental ethos and business essence would remain steadfast regardless of its public or private status. Notably, the last TVS Group IPO occurred in 1994, spearheaded by TVS Electronics.
Steering the IPO process are esteemed book-running lead managers, including JM Financial, Axis Capital, JP Morgan India, BNP Paribas, Nuvama Wealth Management (formerly known as Edelweiss Securities), and Equirus Capital.
