TVS Supply Chain Solutions Ltd IPO

Upcoming

IPO Synopsis

TVS Supply Chain Solutions, a company from the TVS group is coming out with an IPO. The Chennai-based supply chain logistics solution provider is raising funds worth nearly Rs. 5,000 crores.
The IPO consists of a fresh issue of ₹2,000 crore and an offer for sale (OFS) of up to ₹3,000 crore. Tata Opportunities Fund, Mitsubishi Corporation, Gateway Partners, and Exor are some of the investors in the company.
JM Financial Limited, Axis Capital Limited, J. P. Morgan India Private Limited, BNP Paribas, Edelweiss Financial Services Limited and Equirus Capital Private Limited are the book running lead managers to the IPO.

Objective of the Issue
The company will use a majority of the net proceeds from the IPO

1. Rs.1,166 crores will be deployed to repay or prepay its outstanding borrowings to assist the company in maintaining a favourable debt to equity ratio and enable utilisation of internal accruals for further investment in business growth and expansion
2. deploy Rs.75.2 crore in FY23 towards the capitalisation of its strategically important subsidiaries in Germany, US and Thailand and to tap the growth opportunities in these markets 
3. Rs.60 crores will also be infused in the company’s UK arm, to increase its stake in Rico UK to 100%
4. remaining amount will be deployed towards inorganic growth and general corporate purposes

About TVS Supply Chain Solutions Ltd

TVS Supply Chain Solutions is among India’s largest and fastest growing integrated supply chain solutions provider in terms of revenues in FY21 and the only differentiated Indian supply chain logistics solution provider to have global capabilities and network across the value chain with cross deployment abilities. It was promoted by the TVS Group, and are now part of the TVS Mobility Group, which has four business verticals: 
supply chain solutions; 
manufacturing; 
auto dealership; 
aftermarket sales and service
The company aims to provide specialized, simplified solutions to the customers supply chains by using technology, data analytics and execution experience to offer key solutions such as accurate demand forecasting, inventory planning and production, procurement management, network optimization, visibility and supply chain agility to handle evolving needs
The digital platforms are largely cloud based, powered by a micro service-based architecture and are highly scalable and reliable. This enables it to implement innovative solutions across multiple geographies in a relatively short time and deploy an innovative solution developed for one industry and apply it to other industries to enhance the value it offers the customers
The customers come from across industries such as automotive, industrial, consumer, tech and tech infra, rail and utilities, and healthcare. It has a presence in more than 25 countries, including the US, UK, Germany, Spain and Thailand. TVS SCS has facilities in Europe, North America and the Asia Pacific Region. The integrated logistics service provider has employed a workforce of over 30,000 personnel. 
Some of the key customers include Mahindra & Mahindra Limited, Sony India Private Limited, Hyundai Motor India Limited, Johnson Controls-Hitachi Air Conditioning India Limited, Ashok Leyland Limited, TVS Motor Company Limited, Diebold Nixdorf, TVS Srichakra Limited, Lexmark International Technology Sarl, VARTA Microbattery Pte Ltd, Daimler India Commercial Vehicles Private Limited, Hero MotoCorp Limited, Modicare Limited, Panasonic Life Solutions India Private Limited, Dennis Eagle Limited and Electricity North West Limited. 

Profit and Loss

Balance Sheet

Particulars (in Rs. Crores) FY21 FY20 FY19
Revenue 6933.6 6604.5 6779.9
EBITDA 386.7 243.5 520.3
PAT -76.3 -248.0 -32.6
Particulars (in Rs. Crores) FY21 FY20 FY19
Total Assets 4990.1 5462.9 4679.3
Share Capital 31.8 31.8 31.7
Total Borrowings 1547.9 2160.1 1489.2
Particulars (in Rs. Crores) FY21 FY20 FY19
Net cash generated from / (used in) operating activities 712.13 190.30 372.23
Net cash from / (used in) investing activities 63.38 -363.13 -235.45
Net cash flow from / (used in) financing activities -1167.25 556.53 -16.90
Net increase (decrease) in cash and cash equivalents -391.75 383.70 119.89

Peer Comparison

Name of the Company Total Revenue Basic EPS Nav Rs. per share PE RoNW%
TVS Supply Chain Solutions Limited 6999.7 -2.26 14.89 NA -15.2%
TCI Express Ltd 851.6 26.19 112.89 67.23 23.2%
Mahindra Logistics Ltd 3281.2 4.19 79.26 123.34 5.3%
Blue Dart Express Ltd 3308.4 42.91 249.48 154 17.2%


The key points are-

IPO Key Points

  • Strengths

    1. Critical scale in a fast-growing and fragmented third-party logistics market in India
    2. Leader in end-to-end solutions enabled by domain expertise, global network and knowledge base
    3. Robust in-house technology differentiation
    4. Resilient business model with multiple drivers of profitable growth

  • Risks

    1. Unreliable or unsatisfactory services provided by network partners and other third parties or failure to maintain relationships with them could result in a disruption in the operations
    2. Heavily reliant on technology infrastructure and software suite for operations, hence any disruption in these would cause halt in operations and affect profitability
    3. Diverse and complex global operations subject the company to many risks and uncertainties
    4. Unable to pass on any increase in operating costs to the customers and inability to control such costs may adversely affect the financial condition
    5. Unable to re-new long-term agreements with key customers may affect the company expansion and long-term relationships
     

How to apply for IPO?

  • Login to your 5paisa account and select the issue in the current IPO section

  • Enter the number of lots and price at which you wish to apply for

  • Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

  • You will receive a mandate notification to block funds in your UPI app

  • Approve the mandate request on your UPI and funds will be blocked

IPO FAQs

What is the minimum lot size and investment required for the TVS Supply Chain Solutions IPO?

TVS Supply Chain Solutions IPO details are yet to be announced.

What is the price band of the IPO?

TVS Supply Chain Solutions IPO details are yet to be announced.

When does the TVS Supply Chain Solutions issue open and close?

TVS Supply Chain Solutions IPO details are yet to be announced.

What is the size of TVS Supply Chain Solutions IPO issue?

The IPO comprise of a fresh issue of ₹2,000 crore and an offer for sale (OFS) of up to ₹3,000 crore.

Who are the promoters/key personnels of TVS Supply Chain Solutions?

TVS Supply Chain Solutions is promoted by VS Mobility Private Limited, T.S. Rajam Rubbers Private Limited, Dhinrama Mobility Solution Private Limited and Ramachandhran Dinesh.

What is the allotment date of TVS Supply Chain Solutions?

TVS Supply Chain Solutions IPO details are yet to be announced.

What is the TVS Supply Chain Solutions listing date?

TVS Supply Chain Solutions IPO details are yet to be announced.

Who are the book runners for TVS Supply Chain Solutions IPO?

JM Financial Limited, Axis Capital Limited, J. P. Morgan India Private Limited, BNP Paribas, Edelweiss Financial Services Limited and Equirus Capital Private Limited are the book running lead managers to the issue.

What is the objective of the issue?

The proceeds from the issue will be used for: 

1. Rs.1,166 crores will be deployed to repay or prepay its outstanding borrowings to assist the company in maintaining a favourable debt to equity ratio and enable utilisation of internal accruals for further investment in business growth and expansion
2. deploy Rs.75.2 crore in FY23 towards the capitalisation of its strategically important subsidiaries in Germany, US and Thailand and to tap the growth opportunities in these markets 
3. Rs.60 crores will also be infused in the company’s UK arm, to increase its stake in Rico UK to 100%
4. remaining amount will be deployed towards inorganic growth and general corporate purposes

How to apply for the TVS Supply Chain Solutions IPO?

To apply for the IPO, follow the steps given below

1. Login to your 5paisa account and select the issue in the current IPO section
2. Enter the number of lots and price at which you wish to apply for
3. Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange
4. You will receive a mandate notification to block funds in your UPI app