Tolins Tyres, established in 1982, has emerged as a leading producer in the tire industry, offering a diverse range of products that include two and three-wheeler tires, Light Commercial Vehicle (LCV) tires, and agricultural tires. Over the years, the company has evolved from a small-scale industry unit into a major player, now preparing to make its mark on the stock market with its initial public offering (IPO).

Tolins Tyres IPO Details The Tolins Tyres IPO is a Book Built Issue aimed at raising ₹230.00 Crores. The IPO comprises a Fresh Issue of 8.84 lakh shares valued at ₹200.00 Crores and an Offer for Sale of 1.32 lakh shares totaling ₹30.00 Crores. The IPO opened for subscription on September 09, 2024, and closed on September 11, 2024.

The price band for the IPO is set between ₹215 and ₹226 per equity share. Investors looking to participate in the IPO can purchase shares in a minimum lot size of 66 shares, with retail investors required to make a minimum investment of ₹14,916. High-Net-Worth Individuals (HNIs) need to invest in a minimum of 14 lots (924 shares), amounting to ₹208,824.

Key Players in the Tolins Tyres IPO Saffron Capital Advisors Private Limited is the book-running lead manager, while Cameo Corporate Services Limited is the registrar overseeing the allotment process. The allotment is expected to be finalized on September 13, 2024, with the shares tentatively set to list on BSE and NSE on September 16, 2024.

Tolins Tyres IPO Subscription and Allotment Status By the close of the subscription period, the Tolins Tyres IPO had attracted a subscription rate of 23.89x, signaling significant interest from investors. The Grey Market Premium (GMP) for the IPO is expected to be between ₹65 to ₹70, offering potential gains of 28%-30% over the issue price, depending on demand and supply dynamics in the grey market.

To check the Tolins Tyres IPO allotment status, investors can visit the registrar's website:

Navigate to the IPO allotment status page.

Select Tolins Tyres Limited IPO from the list.

Enter your application number, PAN, or DP Client ID.

Submit the details to view your allotment.

Objectives of the Tolins Tyres IPO The proceeds from the Tolins Tyres IPO will be utilized for several key purposes:

₹699.69 million will go toward the repayment and prepayment of certain outstanding loans.

₹750.00 million will be allocated for the augmentation of long-term working capital requirements.

₹231.54 million will be invested in Tolin Rubbers Private Limited, a wholly-owned subsidiary, for repaying and augmenting its working capital.

A portion of the funds will be used for general corporate purposes.

Tolins Tyres Financial Performance The financial performance of Tolins Tyres has been on a steady upward trajectory. The company's revenue grew from ₹1,143.86 million in FY22 to ₹1,196.79 million in FY23, and further surged to ₹2,286.93 million in FY24. Similarly, the company's EBITDA increased from ₹60.90 million in FY22 to ₹122.61 million in FY23 and reached ₹463.74 million in FY24. The Profit After Tax (PAT) also saw a sharp rise from ₹6.31 million in FY22 to ₹49.92 million in FY23, and currently stands at ₹260.06 million in FY24.

These robust financial figures demonstrate the company's resilience and growth potential, making the Tolins Tyres IPO an attractive opportunity for both short-term listing gains and long-term investments.

Valuation Metrics At a pre-issue EPS of ₹9.52 and a post-issue EPS of ₹6.58, the Tolins Tyres IPO appears to be reasonably priced. The pre-issue P/E ratio is 23.74x, while the post-issue P/E ratio is 34.34x, compared to the industry average P/E of 34.17x. The company’s Return on Capital Employed (ROCE) for FY24 is 36.08%, and its Return on Equity (ROE) stands at 25.87%, further solidifying its financial strength.

GMP and Investor Sentiment The Grey Market Premium (GMP) for the Tolins Tyres IPO is currently expected to range between ₹65 to ₹70, reflecting positive sentiment in the market. However, it is important to note that GMP is speculative and does not guarantee the actual listing price of the stock.

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Final Thoughts Given the company's solid financial track record, reasonable valuation, and positive market sentiment, the Tolins Tyres IPO is poised for success. Investors seeking listing gains or long-term growth potential should consider applying.

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