TVS Supply Chain Solutions, a subsidiary of Chennai-based TVS group, will file its draft red herring prospectus (DHRP) for the initial public offering this week to raise up to Rs 5,000 crore, Economic Times reported on Wednesday.

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There will be a fresh issue of Rs 2,000 crore and an offer for sale (OFS) of up to Rs 3,000 crore, bankers told ET.

The company's Promoters and private equity players will reportedly sell part of their stakes in the OFS. Mitsubishi Corporation, Tata Opportunities Fund, Gateway Partners, and Exor are some of the investors in the company. However, TVS Supply Chain has not yet released any statement regarding this development.

TVS Supply Chain Solutions will be the third logistics company to take primary market route to raise money this year. Delhivery had filed its DRHP with the market watchdog in November 2021 for its Rs 7,460 crore IPO and received a regulatory approval in January. Delhi-based Ecom Express is also likely to file its DRHP soon to raise Rs 4,800 crore, the ET report said.

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TVS Supply Chain Solutions, which started as TVS Logistics in 1995 before being hived off as a separate company in 2004, is a third-party logistics services provider. The company's revenue has grown at 36 percent CAGR since its inception in 2004 to over $1 billion in FY21. Accoding to the report, TVS Supply Chain Solutions' operating profits have gone up 37 percent CAGR for the past 15 years.

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Kotak Special Situations Fund reportedly invested RS 1,000 crore in TVS Supply Chain Solutions in September 2021.

(Edited by : Bivekananda Biswas)

First Published:Feb 9, 2022 1:52 PM IST