TVS Supply Chain Solutions Secures Rs 396 Crore in Anchor Investment Ahead of IPO
TVS Supply Chain Solutions Limited (TVSSCS), a leading third-party logistics (3PL) company, has secured Rs 396 crore in anchor investment ahead of its initial public offering (IPO). The anchor investment was made by a consortium of investors led by BlackRock India, Aditya Birla Sun Life Mutual Fund, HDFC Mutual Fund, and SBI Mutual Fund.
The anchor investors subscribed to a total of 2.08 crore shares at the upper end of the price band of Rs 197 per share, which is 25 per cent of the total issue size. The IPO comprises a fresh issue of Rs 600 crore and an offer for sale (OFS) of 1.42 crore shares by existing shareholders. The company is looking to raise Rs 880 crore from the IPO, which will be used to fund its growth plans and to repay debt.
TVSSCS is a well-established 3PL company with a strong track record of growth. The company has been in operation for over 25 years and has a wide network of facilities across India. It caters to a diverse range of customers, including automotive, consumer goods, and retail companies. In the last financial year, the company’s revenue grew by 20 per cent to Rs 2,600 crore.
The company is expected to benefit from the growing demand for 3PL services in India. The Indian 3PL market is expected to grow at a CAGR of 12 per cent to reach Rs 1.9 trillion by 2025. This growth is being driven by the increasing complexity of supply chains, the rise of e-commerce, and the growing demand for customized logistics solutions.
The anchor investment by a consortium of marquee investors is a strong endorsement of TVSSCS’s business model and growth prospects. The IPO is expected to be a popular one and is likely to be oversubscribed.
The IPO of TVSSCS will open for subscription on August 10 and will close on August 14. Eligible investors can apply for a minimum of 76 shares and in multiples thereof. The shares will be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on August 23.
In addition to the above, here are some other factors that make TVSSCS a good investment:
- The company has a strong management team with a proven track record of success.
- The company has a diversified customer base, which reduces its risk exposure.
- The company has a strong financial position with a healthy balance sheet.
The company is well-positioned to benefit from the growth of the Indian 3PL market.
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