Tolins Tyres IPO: Public Issue Subscribed 14x On Final Day, GMP Hints Premium Listing; Check Allotment Date

Tolins Tyres' Initial Public Offering (IPO) is set to close on a high note today, September 11, with an overwhelming response from investors across categories. The company, which aims to raise approximately Rs 230 crore through its IPO, saw subscriptions soar to 13.69 times the available shares.

The Tolins Tyres IPO, which opened for subscription on September 9, was met with high demand. By 2:06 pm on its final day, the IPO had garnered bids for 10.24 crore shares against the 74.88 lakh shares on offer. The subscription rate was particularly impressive in the retail investor segment, which saw 15.83 times subscription. Non-institutional investors (NIIs) followed closely with 16.31 times subscription, while the Qualified Institutional Buyers (QIBs) segment recorded a 7.98 times subscription.

The IPO's price band was set between Rs 215 and Rs 226 per share. Before the public offering began, Tolins Tyres had already raised Rs 69 crore through anchor investors, a strategy often employed by companies to gauge investor interest and secure early capital. A total of 30.53 lakh shares were allocated to these investors at Rs 226 per share, the upper end of the price band, raising Rs 69 crore.

The IPO consists of a fresh issue of 0.88 crore shares, amounting to Rs 200 crore, and an offer for sale (OFS) of 0.13 crore shares, worth Rs 30 crore. Through the OFS route, the company's promoters, Kalamparambil Varkey Tolin and Jerin Tolin, will each sell shares worth Rs 15 crore. Currently, the promoters hold an 83.31% stake in the company, which will see a reduction post-listing.

The proceeds from the fresh issue of shares will be allocated strategically by the company. Of the Rs 200 crore raised, Rs 75 crore will be directed towards boosting Tolins Tyres' long-term working capital, ensuring the company has the liquidity to meet its operational needs as it continues to scale. Additionally, Rs 62.55 crore will be used to pay off outstanding debts, which will strengthen the company's financial position and reduce interest burdens. Furthermore, Rs 24.36 crore will be invested in Tolins Tyres' subsidiary, Tolin Rubbers, to support its working capital requirements and assist in debt repayment.

The minimum application for the Tolins Tyres IPO was set at 66 shares, translating to an investment of Rs 14,916 for those applying at the upper price band of Rs 226 per share. Investors will be eagerly awaiting the allotment date, which is scheduled for September 12, 2024. The shares are expected to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on September 16, 2024.

Saffron Capital Advisors Private Limited acted as the book-running lead manager for the IPO, with Cameo Corporate Services Limited as the official registrar responsible for handling the allocation and refund process.

Founded in 2003, Tolins Tyres has grown into a leading player in India's tyre manufacturing sector. The company has carved out a niche in tyre retreading solutions and has expanded its footprint globally, exporting to 40 countries. Tolins Tyres offers an extensive range of products, including tyres for two-wheelers, three-wheelers, light commercial vehicles, agricultural machinery, and more. In addition to tyres, the company also provides accessories such as bonding gum, tyre flaps, and vulcanizing solutions.

Tolins Tyres operates three state-of-the-art manufacturing facilities and manages 163 stock-keeping units (SKUs) in the tyre category. Its distribution network is robust, with eight depots across India and a vast network of 3,737 dealers.

One of the key indicators of market sentiment towards an IPO is the Grey Market Premium (GMP). As of today, Tolins Tyres' GMP stood at Rs 39 per share. With an issue price of Rs 226, this suggests an estimated listing price of Rs 265 per share, representing a 17.26% premium over the issue price. The steady GMP since September 9 reflects sustained optimism around the stock and its expected performance once listed.