TVS Supply Chain Solutions plans Rs 880cr IPO

TVS Supply Chain Solutions is planning a Rs 880 crore initial public offering (IPO) from August 10, and the listing of shares can be expected around the end of the month.

The price band of the IPO is Rs 187-197 per share of Rs 1 each. "Bids can be made for a minimum of 76 shares and in multiples of 76 shares thereafter," says an official release.

The offer consists of fresh issue of shares of up to such number of equity shares aggregating up to Rs 600 crore and an offer for sale of up to 14.2 million shares amounting to Rs 280 crore.

TVS Supply Chain Solutions reported revenue of Rs 10,235 crore for the financial year ended March 31, 2023, an increase of 11 percent compared to Rs 9,249 crore in FY2022.

TVS Mobility, the promoter group, holds 26.4 percent equity of TVS SCS (107,273,430 shares) and executive vice-chairman Ramachandhran Dinesh holds 1.77 percent equity (7,212,620 shares).

Explaining the TVS SCS outlook, Dinesh says: "We have built the company on 3cs - customers, capability and country. We build solutions for customers - whatever they demand is what we offer."

Ravi Vishwanathan, managing director, said India accounted for 29 percent of the turnover or nearly Rs 3,000 crore while the U.K. also accounts for nearly 29 percent of the topline.

TVS SCS is present across 26 countries, works with around 72 Fortune 500 companies and has an employee strength of around 18,000.

Industry story
The Indian logistics market has grown from$342 billion to $435 billion between 2018 and 2021 at a CAGR of approximately eight percent. "This is more than the growth that the Chinese market and the American market experienced during the same period at a CAGR of approximately four percent and approximately five percent, respectively.

The Indian logistics market is projected to grow at a higher CAGR of approximately six percent between 2021 and 2026. During the same period, the Chinese logistics market is expected to expand at a CAGR of approximately five percent while the US market is expected to expand at a CAGR of approximately one percent," according to the draft prospectus filed by TVS SCS.

“Direct logistics spending is estimated at approximately $205 billion in fiscal 2022 and is projected to grow at a CAGR of approximately 13 percent till fiscal 2027 to approximately $385 billion."