Tolins Tyres IPO Receives Strong Response from Investors

The initial public offering (IPO) of Tolins Tyres has shown a promising start, achieving full subscription in the retail segment within an hour of its opening. Despite a relatively flat market, the overall subscription status stands at 80% as of 12:09 IST, according to the Bombay Stock Exchange (BSE) data.

As per the latest figures, the IPO has received bids for 5,997,288 shares against an offered amount of 7,488,372 shares. Notably, the retail investor segment was oversubscribed by 1.49 times, while the quota for non-institutional investors (NII) saw a subscription of 25%. The portion allocated for qualified institutional buyers (QIB) has yet to be filled.

Prior to launching the IPO for public subscription, which began on September 9, Tolins Tyres successfully raised ₹69 crore from anchor investors on September 6. The price range for the IPO is set between ₹215 and ₹226 per share, with a minimum investment of 66 equity shares per lot.

Established as a leading player in the tire and treads sector, Tolins Tyres exports its products to over forty countries, including the Middle East, East Africa, Jordan, Kenya, and Egypt. The company specializes in precured tread rubber and bias tires, catering to a variety of vehicles from light commercial to agricultural and two- and three-wheelers.

According to the red herring prospectus (RHP), the upcoming IPO comprises a fresh issue of ₹200 crore and an offer-for-sale (OFS) amounting to ₹30 crore by the promoters. The shareholding of Dr. Kalamparambil Varkey Tolin and Jerin Tolin constitutes 83.31% of the company’s total paid-up equity capital, with each selling ₹15 crore in the OFS.

Proceeds from the IPO will primarily be utilized to repay or prepay existing loans, enhance long-term working capital, invest in a wholly owned subsidiary, and for general corporate purposes. The book-running lead manager is Saffron Capital Advisors Private Limited, while Cameo Corporate Services Limited will manage the registration of the offering.

The grey market premium (GMP) for Tolins Tyres IPO is currently at +25, indicating a potential listing price of approximately ₹251 per share, which is an 11.06% increase from the upper end of the IPO price band of ₹226. Experts anticipate a robust listing based on the ascending trend of the GMP over the past eight sessions.