Agnelli family fund bets $78 mn on TVS Supply Chain

 Agnelli family fund bets $78 mn on TVS Supply Chain

TVS Supply Chain Solutions Ltd said Monday it has raised Rs 590 crore ($78 million) from a fund managed by Exor, the diversified holding company of the Agnelli family, the name behind auto giants Fiat and Ferrari.

The Capital Quest had first reported on October 7 that the Agnelli family fund was investing in TVS Supply Chain and that the deal could be worth around $100 million.

“The investment by Exor reiterates the company’s growth potential and vision. Supply chain as a sector in India is expected to grow in double digits and TVS-SCS will leverage its tech-enabled global solutions to outgrow the industry,” said R Dinesh, managing director of TVS Supply Chain Solutions.

This comes just weeks after the Italian family’s holding company invested in myTVS, another company of the $8.5 billion TVS Group.

In August, TVS Group had said that myTVS, which operates under Ki Mobility Solutions, had raised Rs 375 crore from a fund managed by Exor.

The development comes soon after TVS Supply’s controlling shareholders gave an exit to a previous offshore investor and in a parallel deal brought in Kotak Special Situations Fund, a $1-billion distressed assets vehicle managed by Kotak Investment Advisors Ltd, as a stakeholder.

The fund invested Rs 1,000 crore ($130 million) as part of the deal that allowed the promoters of the Chennai-based logistics company to provide an exit to Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ) and prepare the company for an initial public offering.

CDPQ signed off from a five-year-old investment, which was its first direct private equity-style bet in India soon after it set up a local office. It sold its entire 36% stake in TVS Supply Chain.

Last year, Gateway Partners had invested in the company at a post-money valuation of over Rs 5,500 crore (over $750 million).

Tata Opportunities Fund, a private equity fund under Tata Capital, is another PE stakeholder in TVS Supply Chain. It is also looking to exit the investment, having previously sold part of its stake.

Rothschild & Co advised TVS Supply Chain for the latest transaction. Khaitan & Co and Nishith Desai Associates acted as counsels to TVS Supply Chain and Exor, respectively.

Vivek Sinha

The Capital Quest