The initial public offering (IPO) of Tolins Tyres is set to open for public subscription on September 9 and will close on September 11. Ahead of the issue, the grey market premium (GMP) for Tolins Tyres is around Rs 29-30, suggesting a 13% premium over the issue price.
The price band for the IPO has been fixed at Rs 215-226 a share.
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Ahead of the public issue, Tolins Tyres has secured Rs 69 crore from anchor investors. Notable anchor investors include BofA Securities Europe SA, NAV Capital VCC, Chhatisgarh Investments, Ashika Global Securities, Moneywise Financial Services, Vikasa India EIF I Fund, Invicta Continuum Fund I, and Steptrade Revolution Fund. The company has allocated 30.53 lakh shares to these investors at Rs 226 each, the upper limit of the price band.
The IPO comprises a fresh issue of equity shares worth Rs 200 crore and an offer-for-sale (OFS) of equity shares valued at Rs 30 crore. Promoters Kalamparambil Varkey Tolin and Jerin Tolin will sell shares worth Rs 15 crore each through the OFS route. They currently hold an 83.31% stake in the company.
Tolins Tyres is present in both verticals – manufacturing of new tyres and tread rubber. It is primarily engaged in manufacturing of bias tyres for vehicles (including LCV, agricultural and two/three-wheeler vehicles) and precured tread rubber. The company also makes ancillary products like bonding gum, vulcanizing solution, tyre flaps and tubes.
Tolins Tyres’ competitive strengths lie in its operational efficiency, ensuring timely delivery, stringent quality control, and product innovations.
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For FY24, Tolins Tyres generated revenues of Rs 51 crore from new tyre sales, representing 24% of total sales, with tread rubber contributing the remaining 76%. The company’s profit after tax (PAT) has grown at a CAGR of 541.98% from FY22 (on a standalone basis) to FY24 (on a consolidated basis). For FY24, revenue from operations was Rs 227 crore, with a profit of Rs 26 crore.
Saffron Capital Advisor is acting as the sole book running lead manager to the issue, while cameo corporate services is the registrar.
