Tolins Tyres IPO: The Rs 230 crore IPO of Kerala-based rubber and tyre company Tolins Tyres Ltd has opened for subscription on Monday. This IPO is getting a great response from retail investors and the portion reserved for them has been filled up quickly.
Now talking about the grey market, its shares are at a GMP (grey market premium) of Rs 25 i.e. 11.06% from the upper price band of the IPO. Before the issue opened, it was at a GMP of Rs 30.
But, as per experts from the market, investment decisions should follow the core financials of the company, rather than the signals from the grey market. The price band for its IPO is ₹215-₹226.
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Category-Wise Subscription Status
Qualified Institutional Buyers (QIB)- 0.00 times
Non-Institutional Investors (NII)- 0.20 times
Retail Investors- 1.29 times
Total- 0.69 times
Tolins Tyres IPO Details
Tolins Tyres Ltd’s ₹230.00 crore IPO will be open for subscription till September 11. You can invest in its IPO in the price band of ₹215 to ₹226 and in lots of 66 shares.
The allocation of shares for the IPO will be completed on the 12th of September. BSE will then complete the entry along with NSE on the 16th of September.
The registrar for the matter will be Cameo Corporate Services. New shares of around 200 crore rupees will be issued as part of this IPO.
In addition, the 13,27,434 shares that have an estimated face value of 5 rupees will be offered for sale in the Sale for Sale window. The proceeds from the offer for Sale will go to the shareholders who sell the shares.
In addition, the cash generated by the sale of shares will be used to pay back the debt, cover the growing demands of working cattle for long periods as well as invest in wholly-owned Tolin Rubbers, and for general corporate goals. Its subsidiary will repay the debt with the money from the IPO.
Tolins Tyres Details
Tolins Tyres Ltd, formed in the year 2003, manufactures tires that are not only sold in India but also exported to more than 40 countries. Its business can be divided into two parts – one is to manufacture tires and the other is to manufacture tread rubber.
As per the data available up to March 2024, there are 8 depots and 3737 dealers throughout the nation. It is home to three manufacturing facilities, among which two are located in Kerala while the other is in UAE.
It is home to the capacity of 163 inventory-keeping units (SKUs) in the category of tires and 1003 SKUs for the rubber tread category.
In terms of the business’s financial condition, the company earned a net profit of 26.01 crore rupees and revenue of the amount of 228.69 crore rupees in the fiscal year 2024.
It has a debt of Rs 78.77 crore. Exports account for about 5 percent of the company’s revenue and the tread rubber business accounts for 75 percent.
What’s The Current Trend For Experts In IPO?
An advanced broking service-giving firm says that investors who can take more risk can invest money in this company considering its scope for rapid growth.
The brokerage states that the industry of manufacturing tires is experiencing difficulties because of the shortage of raw materials, such as carbon black and natural rubber.
At the upper price of the price band, the issue is valued at 26.64 times its FY24 EPS (earnings per share) of ₹8.48.
Quick Fact
| Company name | Tolins Tyres |
|---|---|
| IPO Size | ₹230 crore |
| IPO Status | Open until September 11 |
| IPO Price Band | ₹215 – ₹226 |
| Shares per Lot | 66 shares |
| Registrar | Cameo Corporate Services |
| New Shares | ₹200 crore |
| Offer for Sale Shares | 13,27,434 shares |
| Face Value per Share | ₹5 |
| Grey Market Premium (Current) | ₹25 (11.06%) |
| Grey Market Premium (Before Issue) | ₹30 |
| QIB Subscription | 0.00 times |
| NII Subscription | 0.20 times |
| Retail Investors Subscription | 1.29 times |
| Total Subscription | 0.69 times |
| Share Allocation Date | September 12 |
| Stock Exchange Listing Date | September 16 |
| Net Profit (FY24) | ₹26.01 crore |
| Revenue (FY24) | ₹228.69 crore |
| Debt (FY24) | ₹78.77 crore |
| Export Revenue Contribution | 5% |
| Tread Rubber Business Contribution | 75% |
| Manufacturing Facilities | 3 (2 in Kerala, 1 in UAE) |
| Total Dealers | 3,737 |
| Depots | 8 |
| Tire Inventory Units | 163 SKUs |
| Rubber Tread Inventory Units | 1003 SKUs |
| Possible Target Price Multiple | 26.64 times FY24 EPS |
| EPS (FY24) | ₹8.48 |
| Investment Use | Debt repayment, working capital, investment in subsidiary, corporate goals |
| Expert Opinion | Suitable for high-risk investors |
| Industry Challenges | Shortage of raw materials (carbon black, natural rubber) |
Disclaimer: The website and its content are for informational purposes only and should not be considered investment advice.
