TVS Group's logistics arm, TVS Supply Chain Solutions (TVS SCS), is planning to roll out an initial public offering worth Rs 2,500-3,000 crore in the first half of next year, Livemint reported on Friday.
The IPO size, however, is subject to changes as discussions continue on "the quantum of shares existing investors will sell" and "if promoters also pare holdings", said the report.
The Chennai-based company has already appointed JM Financial, Axis Capital and JP Morgan to prepare the draft red herring prospectus for the IPO, as per the report. It added that more investment banks are likely to be added to the company's IPO syndicate.
In just the last three months, TVS SCS has been able to raise Rs 1,600 crore from private investors, including Rs 1,000 crore from Kotak Special Situations Fund.
According to India Ratings, TVS SCS contributes 10 percent of the group’s total revenue and is the second-fastest growing company in the conglomerate after TVS Automobile Limited. The credit rating agency added that TVS SCS recorded a 5 percent growth in revenues to Rs 6,950 crore in the year ended March 2021.
“The dip in revenue from India and the US, mainly due to the COVID-19-led decline in the trade flows and supply-side disruptions, was mitigated by a strong performance in Europe and the Asianic business," read the company's performance analysis.
TVS SCS offers transportation, material handling, logistics, aftermarket warehousing, and in-plant warehouse management facilities in India. In countries like the UK, the US, Spain, Germany, and Thailand, the company offers logistics and supply chain-related services.
