Chennai-based TVS Supply Chain Solutions has refiled the draft offer documents for its proposed IPO. While the issue size could not be ascertained, as per the revised DRHP filed, the company plans to raise up to ₹750 crore through fresh issue of equity shares and an offer for sale (OFS) through 2 crore shares. It had earlier planned to raise up to ₹2,000 crore through the fresh issue.

The reduction in issue size is mainly due to the volatile market conditions, said sources.

The funds to be raised will be used for prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company and its subsidiaries, TVS LI UK and TVS SCS Singapore to the tune of around ₹600 crore, according to the document.

Fund raising

TVS SCS has already raised primary capital of ₹418 crore cash and a share swap through minority stake purchase of its subsidiary — White Data Systems through private placement. Marquee investors such as State Bank of India, Bajaj Holding, Hero Enterprises, and Cholamandalam Finance (by share swap) have come on board now.

Another commitment of ₹100 crore has been received from a prominent family office in Mumbai for investment by Q1 of this year, as per market sources.

With ₹520 crore of funds raised and another ₹750 crore through fresh issue in the proposed IPO, the company is well positioned to capitalise on the growth opportunities.

It is also understood that the promoters are not participating in the OFS, as the valuation did not meet their expectations. However, private equity investors like Omega TC Holdings and Tata Capital are participating in the current OFS.

According to sources, the company has grown in high double digits and is likely to close FY23 with ₹10,300 crore as revenue. The net profit of the organisation has also grown 20 per cent.

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