TVS Logistics, part of the diversified business conglomerate TVS Group, will take a call on its initial public offer (IPO) in the next three-six months, a top official said here today.
The city-based company, an integrated logistics provider, is planning to tap the capital market as part of raising funds for its acquisition plans, TVS Logistics Services Managing Director R Dinesh told reporters.
"The target for the IPO is 2011-12... In the next three-six months we will take a call on the date (for the IPO)..," he said.
The move is part of the logistics company's plans to become the flagship arm of the TVS Group. According to Dinesh, the company is planning to raise about Rs 100-200 crore through the IPO to finance its acquisition plans.
Besides, the company has also set a target of doubling its turnover this year. "In 2009-2010, our turnover was Rs 650 crore... For 2010-11, we are expecting to reach around Rs 1,250 crore..," he said.
Dinesh and senior company officials were here to announce their acquisition of US-based Manufacturers Equipment and Supply Company (MESCO) for an 100 per cent cash deal.
As part of the acquisition TVS Logistics would make an investment of Rs 50 crore, he said.
Through this acquisition the company besides leveraging the clients of MESCO, would also help expand its presence in the United States market, he said.
"This acquisition would help handle the supply chain management in the tool and dye business besides increasing the company's presence in North America..," he said.
Dinesh said, at present, 40 per cent of the revenue was contributed from the domestic market while the remaining came from its overseas operation.
In 2007, TVS Logistics acquired 49 per cent stake in another US firm Global Rush. Dinesh said they had recently bought the remaining 51 per cent, making the company a 100 per cent subsidiary of the TVS Logistics in the United States.
On company's future plans, Dinesh said they would be expanding operations in China, South East Asia and Turkey. "Our ambition is to achieve a turnover of $1 billion in 2015," he said.
