TVS Supply Chain Solutions (TVS SCS) on Wednesday said the proceeds from its Rs 880-crore initial public offering (IPO) would be utilised to repay its debt. The company has a debt of Rs 1,700 crore on its books and the Rs 600 crore that will be garnered from the fresh issuance of shares will be used to pare the debt. Besides, it had raised Rs 417 crore ahead of the IPO and with fresh Rs 600 crore coming in, it will be able to retire all its long-term debts which will give the company significant headroom to grow, going forward.
R Dinesh, executive vice-chairman, TVS SCS told select mediapersons here that post culmination of the IPO, the promoters will be holding 44.54% stake in the company. “Considering the fact that we are a global company, it is actually big strength to be public. Because the kind of customers you deal with, and the kind of exposure you get being a public company is enormous,” he said.
The company has fixed a price band between Rs 187 and Rs 197 per equity share for the IPO. The Rs 880-crore IPO consists of a fresh issue of up to Rs 600 crore and an offer for sale of up to Rs 280 crore comprising of 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 is opening on Thursday, August 10 and would close on Monday, August 14.
He said that as this is the first IPO from the TVS stable since a long 29 years after the group firm went public, the company carries good wishes and expectations of all those who have been associated with TVS Group. “I don’t think anything changes because you do an IPO. It is only another phase of the company, we continue the work for all the stakeholders and continue to do what is best for the organisation. The inherent nature of our business and core values for which TVS stands for will continue whether the company is public or private,” he said. The last IPO by a TVS group company was in 1994 by TVS Electronics.
JM Financial, Axis Capital, JP Morgan India, BNP Paribas, Nuvama Wealth Management (formerly known as Edelweiss Securities), and Equirus Capital are the book running lead managers to the offer.