TVS Supply Chain files DRHP with SEBI for IPO

TVS Supply Chain Solutions, a subsidiary of the erstwhile TVS Group, has filed the draft red herring prospectus with market regulator SEBI. The initial public offering (IPO) will consist of a fresh issue of equity shares worth up to Rs 20 billion and an offer for sale of up to 59.48 million equity shares with a face value of Re 1 each. The company intends to use the majority of the net proceeds from the IPO (Rs 11.66 billion) to repay or prepay its outstanding debt. Prepayment or scheduled repayment will enable the company to retain a favourable debt-equity ratio, and reinvest internal accruals in business growth and expansion. In addition, the company will invest Rs 0.75 billion in 2022-23 to capitalise its subsidiaries in Germany, the US and Thailand, and Rs 0.6 billion in its UK subsidiary, expanding its share in Rico UK to 100 per cent. Finally, the remaining funds will be used for inorganic growth and general corporate objectives.

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