The new financing includes a first tranche of '300-350 crore by Standard Chartered Bank. Other lenders to help fund the next tranche of around '800 crore will include Nomura.TVS Mobility, the family office of TS Rajam and his successors, has finalised with multiple lenders a debt fundraising of INR 1,800 crore in a three-tranche loan structure, sources familiar with the deal told ET.
The funds will be utilised for capital expenditure and debt repayment across the businesses that are closely held.
The new financing includes a first tranche of INR 300-350 crore by Standard Chartered Bank. Other lenders to help fund the next tranche of around '800 crore will include Nomura.
The third tranche of INR 600-650 crore is being raised from a consortium comprising Nomura, a Kotak Fund, Axis AIF, Nippon, and ICICI Prudential AIF, sources familiar with the deal said.
The funds are priced around 13-15% across three tranches.
Outside of Standard Chartered, ICICI Prudential AIF made amongst the highest contributions with an amount of INR 300 crore , followed by a Kotak Fund with INR 250 crore, and Nomura investing '200 crore. The transaction is being managed by Standard Chartered Bank, with the financing spread across prominent global and domestic investors, as reported by ET on November 8, 2024.
TVS Mobility owns a 24.35% stake in the listed TVS Supply Chain Solutions. The funding is unrelated to TVS Supply Chain Solutions, as per the sources cited earlier.
TVS Mobility did not respond to ET's queries on the funding plan until the publication of this report.
As per the latest records with the Registrar of Companies, TVS Mobility, has more than a dozen subsidiaries, associate companies and joint ventures. It has interests in businesses such as supply chains, tyre manufacturing, and vehicle dealerships. It also indirectly owns a stake in Ki Mobility, an online aftermarket for auto parts and spares.
As per the corporate filings, TVS Mobility had assets of INR 5,604 crore and income of INR 9,293 crore in FY23.
Members of TV Sundaram Iyengar's family reached a settlement in 2021 to earmark businesses to the successor lines and unwind cross holdings. In accordance with that settlement, four sons of TV Sundaram Iyengar and their respective successors were to continue running the companies under their control.
