Tolins Tyres IPO: The initial public offering of Tolins Tyres Ltd, which has been closed on Wednesday, September 11, has received over 24 times subscription. The price band of the Rs 230-crore IPO was fixed at Rs 215 to Rs 226 per share for the public issue. On the final day of bidding on Wednesday, the IPO received a 24.69 times subscription garnering bids for 17,58,80,694 shares as against the 71,23,894 shares on offer.
The category for non-institutional investors received 28.71 times subscription, while the portion for retail individual investors (RIIs) got subscribed 21.80 times. The QIB category received a 26.72 times subscription.
The IPO was opened for public subscription on September 9. The share allotment of the Tolins Tyres IPO will likely be finalised on September 12, while its shares will be listed on both BSE and NSE on September 16.
Tolins Tyres IPO: GMP Today
According to market observers, unlisted shares of Tolins Tyres Ltd are trading Rs 39 higher in the grey market than its issue price. The Rs 39 grey market premium or GMP means the grey market is expecting a 17.26 per cent listing gain from the public issue. The GMP is based on market sentiments and keeps changing.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Tolins Tyres IPO: Analysts’ Recommendations
SMC Global in its IPO note said investors with a “high-risk” appetite might consider investing in the IPO, given the company’s rapid growth and potential.
It highlighted that the tyre manufacturing industry faces challenges due to limited suppliers of key raw materials like natural rubber and carbon black.
At the upper end of the price band, the stock is priced at a pre-IPO price-to-earnings multiple of 26.64 times on the financial year 2024 earnings per share of Rs 8.48.
Tolins Tyres IPO: Anchor Investment
Tolins Tyres Ltd mopped up Rs 69 crore from anchor investors ahead of its initial share-sale opening for public subscription. 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 are the anchor investors that have been allotted shares.
The company allotted a total of 30.53 lakh shares to these investors at Rs 226 apiece, which is also the upper end of the price band. This aggregates the transaction size to Rs 69 crore, according to a circular uploaded on BSE’s website.
Tolins Tyres IPO: More Details
The company’s Rs 230-crore IPO will be open for public subscription during September 9-11. It has fixed a price band of Rs 215 to Rs 226 per share for its initial public offering (IPO).
The Kerala-based company’s initial share-sale is a combination of fresh issue of equity shares worth Rs 200 crore and an offer-for-sale (OFS) of equity shares to the tune of Rs 30 crore.
Promoters — Kalamparambil Varkey Tolin and Jerin Tolin — will offload shares worth Rs 15 crore each through the OFS route. They own 83.31 per cent stake in the company at present.
Of the Rs 200 crore IPO proceeds, Rs 75 crore will be used to augment long-term working capital requirements of the company and Rs 62.55 crore for payment of debt.
Further, Rs 24.36 crore will be used for investment in the company’s subsidiary, Tolin Rubbers for repaying its debt and to support its working capital requirements.
Bids can be made for a minimum of 66 equity shares and in multiples of 66 equity shares thereafter.
Tolins Tyres is a leading player in the tyre and treads industry and exports its products to 40 countries, including the Middle East, East Africa, Jordan, Kenya and Egypt.
Saffron Capital Advisors Pvt Ltd is the sole lead merchant banker to the public issue.
