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- TVS Supply Chain Solutions Ltd
TVS Supply Chain Solutions Ltd IPO
TVS Supply Chain Solutions Limited was originally incorporated as 'TVS Logistics Services Limited' in Madurai, on November 16, 2004 issued by the Registrar of Companies, Tamil Nadu. Thereafter, the name of Company was changed to 'TVS Supply Chain Solutions Limited', upon a fresh Certificate of Incorporation in change in name on February 27, 2019 issued by the RoC.
The Company is an India based multinational company, who pioneered the development of the supply chain solutions market, which was promoted by the erstwhile TVS Group, one of the reputed business groups in India. The Company provide specialized solutions to reduce complexity in 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.
Their solutions spanning the entire value chain from sourcing to consumption comprises of Integrated Supply Chain Solutions (ISCS); and (ii) Network Solutions (NS). The capabilities under the ISCS segment include sourcing and procurement, integrated transportation, logistics operation centers, in-plant logistics operations, finished goods, aftermarket fulfillment and supply chain consulting. The capabilities under the NS segment include global forwarding solutions (GFS), which involves managing end-to-end freight forwarding and distribution across ocean, air and land, warehousing and at port storage and value added services, and time critical final mile solutions (TCFMS) which involves closed loop logistics and support including spares logistics, break-fix, refurbishment and engineering support, and courier and consignment management.
The Company operate an asset-light business wherein warehouses (primarily comprising after market warehouses, dedicated consumer product and retail warehouses, multi-client facilities and national distribution centres) and vehicles are operated through leases with network partners. Moreover, it manage customer owned/ leased warehouses. The warehousing expansion strategy involves leasing multi-user facilities in production and consumption centres in India with appropriate infrastructure and technology enablement that enables them to serve existing customers and expand business through encirclement and new customer acquisition. In NS segment, it has key trade lanes for GFS operations and in country networks for TCFMS operations through which the Company is able to realize the benefit of increased throughput.
The Company commenced operations as TVS Logistics', a division of TVS & Sons in 1995 before being incorporated as a separate company in 2004. TVS & Sons was one of the original promoters of Company.
Pursuant to a Composite Scheme of Amalgamation and Arrangement, as approved by the NCLT, Chennai on December 6, 2021, with effect from February 4, 2022, certain business and activities in relation to sales and distribution of vehicles, equipment and automotive components and parts, along with certain strategic investments, including investment in the Company (Demerged Undertaking), were transferred to TVS Mobility. Accordingly, giving effect to the TVS Sons Scheme, 107,273,430 Equity Shares held by TVS & Sons transferred to TVS Mobility on February 4, 2022, and TVS & Sons ceased to be a promoter of the Company.
In August 2023, Company made an IPO of 44,670,050 Equity Shares by raising funds aggregating to Rs 880 Crore comprising a Fresh Issue of 30,456,852 Equity Shares aggregating to Rs 600 Crore and 14,213,198 Equity Shares aggregating to Rs 280 Crore.
In August 2023, Company launched LEAD (Leadership Exploration and Discovery), an initiative to empower leadership teams with invaluable insights into effective people management, change management, and strategic business acumen.
During the year 2023-24, the Board of the Company of Directors at its meeting held on February 5, 2024, have approved the Scheme of Amalgamation of wholly owned subsidiaries of the Company, namely TVS SCS Global Freight Solutions Limited, FLEXOL Packaging (India) Limited, White Data Systems India Private Limited and SPC International (India) Private Limited and Mahogany Logistics Services Private Limited with the Company.
The Company is an India based multinational company, who pioneered the development of the supply chain solutions market, which was promoted by the erstwhile TVS Group, one of the reputed business groups in India. The Company provide specialized solutions to reduce complexity in 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.
Their solutions spanning the entire value chain from sourcing to consumption comprises of Integrated Supply Chain Solutions (ISCS); and (ii) Network Solutions (NS). The capabilities under the ISCS segment include sourcing and procurement, integrated transportation, logistics operation centers, in-plant logistics operations, finished goods, aftermarket fulfillment and supply chain consulting. The capabilities under the NS segment include global forwarding solutions (GFS), which involves managing end-to-end freight forwarding and distribution across ocean, air and land, warehousing and at port storage and value added services, and time critical final mile solutions (TCFMS) which involves closed loop logistics and support including spares logistics, break-fix, refurbishment and engineering support, and courier and consignment management.
The Company operate an asset-light business wherein warehouses (primarily comprising after market warehouses, dedicated consumer product and retail warehouses, multi-client facilities and national distribution centres) and vehicles are operated through leases with network partners. Moreover, it manage customer owned/ leased warehouses. The warehousing expansion strategy involves leasing multi-user facilities in production and consumption centres in India with appropriate infrastructure and technology enablement that enables them to serve existing customers and expand business through encirclement and new customer acquisition. In NS segment, it has key trade lanes for GFS operations and in country networks for TCFMS operations through which the Company is able to realize the benefit of increased throughput.
The Company commenced operations as TVS Logistics', a division of TVS & Sons in 1995 before being incorporated as a separate company in 2004. TVS & Sons was one of the original promoters of Company.
Pursuant to a Composite Scheme of Amalgamation and Arrangement, as approved by the NCLT, Chennai on December 6, 2021, with effect from February 4, 2022, certain business and activities in relation to sales and distribution of vehicles, equipment and automotive components and parts, along with certain strategic investments, including investment in the Company (Demerged Undertaking), were transferred to TVS Mobility. Accordingly, giving effect to the TVS Sons Scheme, 107,273,430 Equity Shares held by TVS & Sons transferred to TVS Mobility on February 4, 2022, and TVS & Sons ceased to be a promoter of the Company.
In August 2023, Company made an IPO of 44,670,050 Equity Shares by raising funds aggregating to Rs 880 Crore comprising a Fresh Issue of 30,456,852 Equity Shares aggregating to Rs 600 Crore and 14,213,198 Equity Shares aggregating to Rs 280 Crore.
In August 2023, Company launched LEAD (Leadership Exploration and Discovery), an initiative to empower leadership teams with invaluable insights into effective people management, change management, and strategic business acumen.
During the year 2023-24, the Board of the Company of Directors at its meeting held on February 5, 2024, have approved the Scheme of Amalgamation of wholly owned subsidiaries of the Company, namely TVS SCS Global Freight Solutions Limited, FLEXOL Packaging (India) Limited, White Data Systems India Private Limited and SPC International (India) Private Limited and Mahogany Logistics Services Private Limited with the Company.
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TVS Supply Chain Solutions Ltd IPO Timeline
TVS Supply Chain Solutions Ltd IPO opens on 10-Aug-2023, and closes on 14-Aug-2023. The TVS Supply Chain Solutions Ltd IPO bid date is from 10-Aug-2023 to 14-Aug-2023. The Cut-off time for UPI Mandate confirmation is 12 P.M. on the next day of issue closing day.
| Event | Date |
|---|---|
| TVS Supply Chain Solutions Ltd IPO Opening Date | 10-Aug-2023 |
| TVS Supply Chain Solutions Ltd IPO Closing Date | 14-Aug-2023 |
| Basis of Allotment | 21-Aug-2023 |
| Initiation of Refunds | 22-Aug-2023 |
| Credit of Shares to Demat | 23-Aug-2023 |
| TVS Supply Chain Solutions Ltd IPO Listing Date | 23-Aug-2023 |
TVS Supply Chain Solutions Ltd IPO Lot Size
TVS Supply Chain Solutions Ltd IPO lot size is 76 shares. A retail-individual investor can apply for up to 13 lots (988 shares or 194636).
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Minimum | 1 | 76 | ₹14972 |
| Maximum | 13 | 988 | ₹194636 |
TVS Supply Chain Solutions Ltd IPO Details
| TVS Supply Chain Solutions Ltd IPO Date | 10-Aug-2023 to 14-Aug-2023 |
| TVS Supply Chain Solutions Ltd IPO Face Value | Shares of ₹1 per share |
| TVS Supply Chain Solutions Ltd IPO Price | ₹187 to ₹197 per share |
| TVS Supply Chain Solutions Ltd IPO Lot Size | 76 |
| Issue Size | Shares of ₹1 (aggregating up to ₹880 Cr) |
| Fresh Issue | Shares of ₹1 (aggregating up to ₹600 Cr) |
| Offer for Sale | Shares of ₹1 (aggregating up to ₹266 Cr) |
| Issue Type | Book Built Portion |
| Listing At | BSE, NSE |
| QIB Shares Offered | Not more than 13547601 |
| Retail Shares Offered | Not less than 4629875 |
| NII (HNI) Shares Offered | Not less than 6944813 |
| Company Promoters | TVS Mobility Pvt Ltd, T.S.Rajam Rubbers Pvt Ltd, Dhinrama Mobility Solutions Pv. |
Objects of the Issue
The company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects:
- 1 Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company and its subsidiaries, TVS LI UK & TVS SCS Singapore
- 2 General corporate purposes
Company Financials
TVS Supply Chain Solutions Ltd Financial Information (Restated)
| Period Ended | Total Assets | Total Revenue | Profit After Tax |
|---|---|---|---|
| 03-2024 | 3620.05 | 2139.65 | 105.45 |
| 03-2023 | 3120.17 | 1978.44 | -29.26 |
| 03-2022 | 2471.70 | 1561.03 | -21.22 |
| Amount in ₹ Crore | |||
- Critical scale in a fast-growing and fragmented third-party logistics market in India.
- Leader in end-to-end solutions enabled by domain expertise, global network and knowledge base.
- Robust in-house technology differentiation.
- Long and consistent track-record of successful integration of acquisitions to support capabilities and customer acquisition.
- Long-term customer relationship in diversified and attractive industries through encirclement.
- Resilient business model with multiple drivers of profitable growth.
- Strong parentage with management team with cross industry experience.
- The company's Equity Shares have never been publicly traded, and, after the Offer, the Equity Shares may experience price and volume fluctuations, and an active trading market for the Equity Shares may not develop. The Offer Price of the Equity Shares, price to earnings ("P/E") ratio, enterprise value ("EV") to EBITDA ratio and market capitalization to revenue from operations ratio may not be indicative of the market price of the Equity Shares on listing or thereafter.
- The company depends on network partners and other third parties in certain aspects of its operations and unreliable or unsatisfactory services provided by them or failure to maintain relationships with them could result in a disruption in its operations, which could have an adverse effect on its business, financial condition, results of operations and cash flows.
- The company is highly reliant on its technology infrastructure and software suite in the company business operations, and any disruption or failure of its technology infrastructure could materially and adversely affect the company growth prospectus, reputation, business, results of operations, financial condition and cash flows.
- The company's diverses and complex global operations subject it to many risk and uncertainties.
- The company incurred losses in Fiscals 2020, 2021 and 2022, and the nine-month period ended December 31, 2021 and any similar losses in the future may adversely affect its business, financial condition and cash flows.
- The company indebtedness and the conditions and restrictions imposed by its financing agreements and any non-compliance may lead to, amongst others, suspension of further drawdowns, which may adversely affect its business, results of operations, financial condition and cash flows.
- The compan is exposed to foreign currency exchange rate fluctuations and its results of operations have and will impacted by such fluctuations in the future.
- The company depends on its ability to demonstrate the value of its services to customers while operating in a highly competitive and fragmented industry, and any failure to compete or respond to customer requirements could negatively affect its business and the company results of operations.
- The company typically enter into long-term agreements with customers and if its key customers do not renew their agreements with it, or expand the scope of services, the company provide to them, or if its long-term relationships with the company key customers are impaired or terminated, its business, financial condition, results of operations and cash flows could be adversely impacted.
- The company has undertaken and may continue to undertake strategic acquisitions in the future, which may be difficult to integrate and manage. These may expose it to uncertainties and risks, any of which could materially adversely affect its business, financial conditions, results of operations and cash flows.
- The company depends on a number of key personnel, including its Promoters and senior management team as well as skilled and qualified personnel, and if the company is unable to recruit and retain such personnel, its ability to operate or grow the company business could be adversely affected.
- The company's derives a significant portion of its revenue from customers engaged in certain industries, and a loss of, or a significant decrease in business from customers in these industries could adversely affect its business, results of operations, financial condition and cash flows.
- The company business is dependent on its ability to utilize its logistics infrastructure in an uninterrupted manner. Any disruption or delays in this regard could have a material adverse effect on its business, results of operations, financial condition and cash flows as well as lead to a loss of reputation.
- The company may not be able to pass on any increase in operating costs to its customers and inability to control such costs may adversely affect its business, financial condition, results of operations and cash flows adversely.
- The company may face claims relating to loss or damage to cargo, personal injury claims or other operating risks that are not adequately insured and its insurance coverage could prove inadequate to satisfy potential claims or be insufficient to cover all losses associated with its business operations, which may have a material adverse effect on the company business, results of operations, financial condition and cash flows.
- The COVID-19 pandemic had, and any similar pandemic situations that may arise in the future, may have a material adverse impact on its business, results of operations, financial condition and cash flows.
- The company lease all of its warehouses as well as its Registered and Corporate Office. Failure to renew the company current leases or licenses or locate desirable locations that are suitable for its expansion at commercially reasonable prices could adversely affect its business, financial condition, results of operations and cash flows.
- The company results of operations, financial conditions, cash flows and prospects may be adversely affected by any delay or default in payment from its customers or reduction in the credit period provided by third party service providers the company engage for its operations.
- Failure to comply with the applicable laws and regulations by it or the company third parties may materially and adversely impact its business, reputation, financial condition, results of operations and cash flows.
- The company is susceptible to risks relating to compliance with labour laws and its operations could be adversely affected by labour shortages, strikes, work stoppages or increased wage demands by its employees or any other kind of disputes with the company employees.
- There are outstanding litigation proceedings against the Company, Directors, Promoters and Subsidiaries. Any adverse outcome in such proceedings may have an adverse impact on its reputation, business, financial condition, results of operations and cash flows.
- The company do not verify the contents of the freight/ packages transported by it, thereby exposing us to the risks associated with the transportation of hazardous materials, confidential consignments and goods in violation of applicable regulations.
- The trend toward outsourcing of supply chain management activities, throughout India or globally, may change, thereby reducing demand for its services.
- Certain of its Material Subsidiaries have incurred losses in the preceding Fiscals and may incur losses in the future.
- Improper handling of goods at the company warehouses and employee misconduct or errors could damage its reputation and have an adverse effect on its business, results of operations, financial condition and cash flows.
- The company experience the effects of seasonality, which may result in its operating results fluctuating significantly.
- The company is required to obtain, renew or maintain statutory and regulatory permits, licenses and approvals to operate its business, and any delay or inability in obtaining, renewing or maintaining such permits, licenses and approvals could result in an adverse effect on its results of operations.
- Certain sections of this Draft Red Herring Prospectus disclose information from the Redseer Report and Armstrong Report which have been prepared exclusively for the Offer and commissioned and paid for by it exclusively in connection with the Offer and any reliance on such information for making an investment decision in the Offer is subject to inherent risks.
- The company have in this Draft Red Herring Prospectus included certain non-GAAP financial measures and certain other industry measures related to its operations and financial performance that may vary from any standard methodology that is applicable across the industry the company operate.
- The company has in the past entered into relatedparty transactions and may continue to do so in the future, which may potentially involve conflicts of interest with the equity shareholders.
- The company may not be able to manage the growth of its business effectively or continue to grow the company business at a rate similar to what its have experienced in the past.
- The company may be unable to adequately obtain, maintain, protect and enforce its intellectual property rights. The company may also be subject to intellectual property infringement claims, which may be expensive to defend and may disrupt its business and operations.
- The company has certain contingent liabilities as per Ind AS 37 that have not been disclosed in its financial statements, which if they materialise, may adversely affect its financial condition and cash flows.
- Any variation in the utilisation of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval.
- The company is exposed to the risk from sanctions laws or other similar regulations.
- The company Promoters and certain of its Directors, Key Managerial Personnel and Senior Management have interests in the Company other than their normal remuneration or benefits and reimbursement of expenses.
- After the completion of the Offer, Its Promoters along with the Promoter Group will continue to collectively hold substantial shareholding in the Company.
- Certain of its Promoters have pledged their Equity Shares with a lender. Any exercise of such pledge by the lender could dilute the shareholding of the Promoters, which may adversely affect its business and share price.
- The company funding requirements and the proposed deployment of Net Proceeds have not been appraised by any bank or financial institution or any other independent agency and its management will have broad discretion over the use of the Net Proceeds.
- The success of the businesses depends on the infrastructure support and facilities in the areas its currently operate in or intend to operate in the near future.
- Inability to maintain adequate internal controls may affect the company ability to effectively manage its operations, resulting in errors or information lapses.
- The company ability to pay dividends in the future will depends on its earnings, financial condition, working capital requirements, capital expenditures and restrictive covenants of the company financing arrangements.
- The company havs issued Equity Shares during the preceding twelve months at a price which may be below the Offer Price.
- The company will not receive any proceeds from the Offer for Sale. The Selling Shareholders will receive the net proceeds from the Offer for Sale.
- Growth in its existing core sectors.
- Scout for adjacent sectors.
- Pivot to new age and fast emerging sectors.
TVS Supply Chain Solutions Ltd IPO Promoter Holding
| Pre Issue Share Holding | 45.56% |
| Post Issue Share Holding | 41.76% |
TVS Supply Chain Solutions Ltd IPO Subscription Status (Bidding Detail)
The TVS Supply Chain Solutions Ltd IPO is subscribed 2.78 times on Aug 14, 2023 05:00:00 PM. The public issue subscribed 7.61 times in the retail category, 1.35 times in the QIB category, and 2.35 times in the NII category. Check Day by Day Subscription Details (Live Status)
| Category | QIB | NII | Retail | Employee | Total |
|---|---|---|---|---|---|
| Subscription (times) | 1.35 | 2.35 | 7.61 | - | 2.78 |
TVS Supply Chain Solutions Ltd IPO Prospectus
TVS Supply Chain Solutions Ltd IPO Listing Date
| Listing Date | 23 Aug 23 |
| BSE Script | 543965 |
| NSE Symbol | TVSSCS |
| Listing In | BSE, NSE |
| ISIN | INE395N01027 |
| IPO Price | ₹197 |
| Face Value | ₹1 |
TVS Supply Chain Solutions Ltd IPO Registrar
Link Intime India Pvt Ltd
Phone: +91 810 811 4949
Email: tvs.ipo@linkintime.co.in
Website: www.linkintime.co.in
TVS Supply Chain Solutions Ltd IPO Lead Manager(s)
- JM Financial Ltd
- Axis Capital Ltd
- J.P.Morgan India Pvt Ltd
- BNP Paribas
- Nuvama Wealth Management Ltd
- Equirus Capital Pvt Ltd
FAQs on TVS Supply Chain Solutions Ltd IPO
TVS Supply Chain Solutions Ltd IPO, which opens for subscription from 10-Aug-2023 to 14-Aug-2023 has an issue size of ₹880 crore. The issue type is book building issue.
In case of pre-apply, your IPO order will be placed on the Exchange as soon as the official bidding for TVS Supply Chain Solutions Ltd IPO begins. You will receive a UPI request within 24 hours after the bidding period opens.
TVS Supply Chain Solutions Ltd IPO Opens for subscription from 10-Aug-2023 to 14-Aug-2023.
The lot size of TVS Supply Chain Solutions Ltd is 76 shares. Retail investors can subscribe to minimum 1 lot and maximum 13 lots. The minimum and maximum application value is ₹14972 and ₹194636 respectively.
Allotment date for TVS Supply Chain Solutions Ltd is 21-Aug-2023 and refund of application amount (in case allotment is not received) will begin from 22-Aug-2023. If your allotment goes through, then shares will be credited in your Demat account by 23-Aug-2023.
The registrar for TVS Supply Chain Solutions Ltd IPO is Link Intime India Pvt Ltd. You can check your IPO allotment status on the registrar's website.
The shares of TVS Supply Chain Solutions Ltd are proposed to be listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
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