Tolins Tyres Opens Subscription for its INR 230 Cr IPO Tolins Tyres plans to use the net proceeds for debt repayment, long-term working capital augmentation, investments in its subsidiary, Tolin Rubbers, and other general corporate purposes.
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The 2003-founded tyre manufacturing company Tolins Tyres launched its initial public offering (IPO) on Monday, September 9, offering shares in the price range of INR 215-226 per share. The IPO, which will remain open for bidding until Wednesday, September 11, requires a minimum application of 66 equity shares and its multiples. The allotment of shares is expected to be finalised on September 12, with a tentative listing date of September 16 on both the BSE and NSE stock exchanges.
It plans to use the net proceeds for debt repayment, long-term working capital augmentation, investments in its subsidiary, Tolin Rubbers, and other general corporate purposes.
The INR 230 crore IPO consists of a fresh issue of shares worth INR 200 crore and an offer-for-sale (OFS) of 13.27 lakh equity shares from the company's promoters. Tolins Tyres plans to use the net proceeds for debt repayment, long-term working capital augmentation, investments in its subsidiary, Tolin Rubbers, and other general corporate purposes.
Prior to the IPO launch, Tolins Tyres raised INR 69 crore from eight anchor investors by allocating 30,53,097 equity shares at INR 226 each. These investors include notable names such as BofA Securities Europe SA, NAV Capital VCC, and Vikasa India EIF, showcasing strong interest in the IPO.
Tolins Tyres operates in two verticals: tyre manufacturing and tread rubber manufacturing. The company offers a wide range of products, including light commercial vehicle tyres, off-road/agriculture tyres, two-wheeler and three-wheeler tyres, precured tread rubber (PCTR), conventional tread rubber, bonding gum, vulcanizing solution, rope rubber, as well as tire tubes and tyre flaps. With a strong domestic presence through 8 depots and 3,737 dealers, it also exports to 40 countries.
"Tolins Tyres offers product diversity and has a widespread customer base, including domestic and international customers. A smaller player, gradually expanding. Strong financial performance with consistent growth. The IPO's valuation appears reasonable. Investors seeking long-term exposure to the tyre industry may consider applying for the Tolins Tyres IPO, recognizing the potential challenges posed by the competitive landscape and IPO timing," said Shivani Nyati, Head of Wealth at Swastika Investmart Ltd.
Tolins Tyres reported a net profit of INR 26.01 crore and revenue of INR 228.69 crore for the financial year ending March 31, 2024. The IPO has a balanced allocation for investors, with 50 percent of the net offer reserved for qualified institutional buyers (QIBs), 15 percent for non-institutional investors (NIIs), and 35 percent for retail investors.
