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TVS Supply Chain Solutions, a part of TVS Mobility Group, is gearing up for the initial share sale that would be open for public subscription from August 10 onwards, officials said on Wednesday. This is the first company from the TVS group to hit the IPO market after 29 years, Executive Vice-Chairman R Dinesh said.
"I think the last time when we (TVS group) raised (funds) was in 1994...," he told reporters.
The price band has been fixed at Rs 187-197 for the Rs 880 crore initial public offering (IPO), valuing the company at Rs 8,700 crore.
The initial share sale comprises Rs 600 crore of fresh issue and Rs 280 crore sale by the promoters. The IPO would be open for subscription during August 10-14, he said.
At the upper end of the price band, the IPO is expected to fetch Rs 880 crore. From the issue's proceeds, Rs 525 crore will be used for pre-existing debt repayment and its subsidiary TVS LI UK.
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A portion of the fund would also be used for "inorganic growth" and general corporate purposes.
According to Managing Director Ravi Vishwanathan, the gross debt by the company was at Rs 1,700 crore.
"Tomorrow is one of the important milestones in the journey of the company. Entire organisation is pretty excited about that (IPO). The company works on 3Cs -- capability, customer and country," he said.
The United Kingdom constitutes a major chunk of the business at Rs 3,036 crore followed by India at Rs 3,026 crore and Rs 1,300 crore was contributed from Europe and Rs 790 crore from the United States of America, he said.
Responding to a query, Dinesh said he was the fourth generation in the TVS family and hitting the capital market does not change anything for the business group.
"The inherent nature of business for TVS continues," he said pointing out that his company has large Fortune 500 companies as its customers for several years.
Asked whether there was a pressure on the company to go for an IPO, he replied in the negative and said TVS Supply Chain Solutions was an "Indian multinational company".
JM Financial, Axis Capital, J P Morgan India, BNP Paribas, Nuvama Wealth Management and Equirus Capital are the lead managers to the IPO.
