TVS Mobility Secures Major Funding to Strengthen its Financial Stability

In a crucial move to strengthen its economic stability, TVS Mobility, the family office of TS Rajam and his descendants, has finalized a ₹1,800 crore debt-raising effort. The capital, obtained through a three-part loan arrangement, is designated for capital expenditure and paying off debts within its privately owned companies.

The financing kicks off with a ₹300-350 crore tranche led by Standard Chartered Bank. A second tranche of approximately ₹800 crore is backed by Nomura, while a consortium including Nomura, Kotak Fund, Axis AIF, Nippon, and ICICI Prudential AIF is financing the final ₹600-650 crore tranche. According to sources, the loans are priced between 13-15% across all three tranches.

ICICI Prudential AIF has contributed ₹300 crore, making it one of the largest contributors. It is followed by a Kotak Fund with ₹250 crore and Nomura with ₹200 crore. Standard Chartered Bank manages the transaction, attracting participation from prominent global and domestic investors.

As sources clarified, the funding is unrelated to TVS Mobility's 24.35% stake in TVS Supply Chain Solutions. TVS Mobility oversees assets valued at ₹5,604 crore and earned ₹9,293 crore in FY23, administering twelve subsidiaries and joint ventures that include supply chain management, tyre manufacturing, vehicle dealerships, and a stake in Ki Mobility, an online auto parts platform.

The progress comes after the TV Sundaram Iyengar family's 2021 agreement to simplify business activities under their corresponding successor branches. TVS Mobility declined to comment on the funding at the time of publication.