TVS mobility flags off Rs 2,000-crore fund race

Synopsis

TVS Mobility, led by TS Rajam's successors, is seeking to raise Rs 2,000 crore from banks and credit funds. The funds will be used for capital expenditure and debt repayments. Standard Chartered Bank is anchoring the fundraising. TVS Mobility had previously secured short-term loans to repay dues to Kotak Special Situations Fund.

TVS Mobility, the family office of TS Rajam and his successors, has tapped banks and credit funds to raise Rs 2,000 crore for capital expenditure by the businesses in its fold and for debt repayments, according to people aware of the matter.

The fundraise is said to be anchored by Standard Chartered Bank and will include credit investors that could join the pool of lenders. TS Rajam is one of eight descendants of group founder TV Sundaram Iyengar.

His successors include but are not limited to R Dinesh, executive chairperson of TVS Supply Chain Solutions, R Haresh, who officiates as director of TVS Mobility group, and Shobhana Ramachandran, managing director of TVS Srichakra. The family office had obtained short-term loans from non-bank finance companies, mutual funds and corporate treasuries in September last year to clear dues owed to Kotak Special Situations Fund, from which it had borrowed around `1,000 crore in 2021, according to the sources.

The fresh fundraise will cover repayments on the short-term loans and capital expenditure of group units, though ET couldn’t independently verify which companies the money would be allocated to.

“The TVS Mobility group continues to explore financing options to support the growth of its group companies. At this stage, we are unable to provide details regarding the fund size,” said an official spokesperson for TVS Mobility. “Further, we want to clarify that this initiative is unrelated to TVS Supply Chain Solutions (TVS SCS).”

Standard Chartered Bank declined to comment.

TVS Mobility owns a 24.35% stake in the listed TVS Supply Chain Solutions. It has over a dozen subsidiaries, associate companies and joint ventures, according to the latest Registrar of Companies data. TVS Mobility has interests in businesses such as supply chains, tyre manufacturing, 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 Rs 5,604 crore and income of Rs 9,293 crore in FY23.

FAMILY SETTLEMENT
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. TS Rajam and his successors control TVS Mobility while TS Santhanam’s family continues to run Sundaram Finance. TS Krishna’s family is at the helm at Sundram Fasteners while TS Srinivasan’s family controls TVS Motors.

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