IPO Update: TVS Supply Chain to Raise up to Rs 5,000 Crore via IPO

IPO Update: TVS Supply Chain to Raise up to Rs 5,000 Crore via IPO  This week, TVS Supply Chain Solutions, a subsidiary of the Chennai-based TVS group, will file a draught red herring prospectus (DHRP) for an initial public offering (IPO) with a target price of Rs 5,000 crore. The company has put in place all the necessary requirements, including governance with respect to the IPO, sources said. According to bankers, the IPO will include a fresh issue of 2,000 crores and an offer for sale (OFS) of up to 3,000 crores. Promoters and private equity firms will sell a portion of their OFS holdings. Some of the company's investors include Tata Opportunities Fund, Mitsubishi Corporation, Gateway Partners, and Exor. This year, TVS Supply Chain Solutions is the third logistics provider to enter the primary market. Delhivery filed its DRHP with the market watchdog for its 7,460 crore IPO in November 2021. In January, it got regulatory approval. The Chennai-based firm, which pioneered third-party logistics in India in 1995, has grown into an end-to-end supply chain solutions provider with over 17,000 people spread across four continents and over 20 countries. In 2025, TVS SCS will be among the top 50 logistics firms in the world, with a revenue of roughly $2.5 billion and a profit of $100 million. The company has a diverse customer base that includes consumer durables, telecom, electronics, and automobiles, with non-auto clients accounting for about 57% of revenue and non-TVS group companies accounting for 95% of the business. According to sources, the acquisition of several companies since 2005 has aided in the company's quicker expansion. It was able to successfully integrate 65 businesses. Company acquisitions were made to add new capabilities, expand geographically, and gain customers. In October, TVS obtained Rs 590 crore from a fund run by Exor, a renowned diversified holding company based in Europe and controlled by the Agnelli family, to expand its business, develop its technological capabilities, and support other transformational initiatives. In November, TVS purchased a 69.1 percent controlling stake in Bengaluru-based FIT 3PL Warehousing Private Limited (FIT 3PL), a supplier of end-to-end contract logistics services. It bolstered TVS SCS's current pan-India reach by adding over 1.5 million square feet of warehouse capacity. Tata Opportunities Fund, Mitsubishi Corporation, Gateway Partners, and Exor are among the company's current investors. Kotak Special Situations Fund, administered by Kotak Investment Advisors, invested a total of Rs 1,000 crore in TVS Supply Chain Solutions in September.