TVS Supply Chain Solutions Limited (TVS SCS) announced an additional funding infusion into its wholly-owned US subsidiary, TVS Logistics Investments Inc. (TVS LI USA), aimed at supporting business expansion. The infusion is structured as a cash consideration for the allotment of new equity shares. The subsidiary, which specializes in warehousing and freight, recorded a FY25 turnover of ₹10,298.94 Mn, demonstrating significant prior growth.
Funding Approval for US Subsidiary
TVS Supply Chain Solutions Limited confirmed approval for an additional funding infusion into its wholly-owned overseas subsidiary, TVS Logistics Investments Inc. USA (TVS LI USA). This action is designed to support the subsidiary’s ongoing business expansion plans.
Transaction Details
The funding was executed via the allotment of equity shares, with the consideration being a Cash consideration. The total Cost of acquisition for these shares was INR 213.44 Mn, priced at USD 165/- each. Following this allotment, TVS LI USA will continue to remain a wholly owned overseas subsidiary of TVS SCS.
Subsidiary Background and Rationale
TVS LI USA is primarily engaged in the business of storage, warehousing, freight transportation and other land transport services in the United States of America. The primary Object of the funding is to inject capital into the US entity to address cash flow/working capital requirement.
The subsidiary has shown substantial prior financial performance:
- FY25 Turnover: ₹10,298.94 Mn
- FY24 Turnover: ₹7,961.77 Mn
- FY23 Turnover: ₹7,061.93 Mn
The transaction is classified as a cross-border transaction requiring compliance with relevant foreign exchange regulations, set to be completed by March 31, 2026. The Board confirmed that this is not a related party transaction, and the acquisition was conducted at an “arm’s length” basis.
Source: BSE
