Tolins Tyres, established in 1982, has evolved from a small-scale industry unit into a leading player in the tire manufacturing sector. Specializing in a diverse range of products, including two and three-wheeler tyres, Light Commercial Vehicle (LCV) tyres, and Agriculture tyres, Tolins Tyres has built a strong reputation for quality and reliability. The company is now set to launch its IPO, raising a total of ₹230.00 Crores. This IPO comprises a fresh issue of 8.84 lakh shares worth ₹200.00 Crores and an offer for sale of 1.32 lakh shares totaling ₹30.00 Crores.

The subscription period for the Tolins Tyres IPO is from September 9 to September 11, 2024. The shares are priced between ₹215 and ₹226 each, with a minimum lot size of 66 shares. Retail investors must invest at least ₹14,916, while High-Net-Worth Individuals (HNIs) are required to invest a minimum of ₹208,824 for 14 lots.

Saffron Capital Advisors Private Limited is the book-running lead manager for the IPO, and Cameo Corporate Services Limited is the registrar.

Tolins Tyres IPO GMP Today

The Grey Market Premium (GMP) for Tolins Tyres IPO is anticipated to be between ₹65 and ₹70. GMP is an informal indicator of the likely listing price and depends on market demand and supply dynamics. It should be noted that GMP is not a reliable predictor of the final listing price and is provided for informational purposes only.

Tolins Tyres IPO Live Subscription Status

As of 12:04 PM on September 10, 2024, the IPO has been subscribed 3.04 times. For the latest subscription status, visit the BSE website.

Tolins Tyres IPO Allotment Status

The IPO allotment for Tolins Tyres is scheduled for September 13, 2024. Investors can check their allotment status by visiting the registrar’s website, selecting Tolins Tyres Limited IPO from the dropdown list, and entering their application number, PAN, or DP Client ID.

Objectives of the IPO

The proceeds from the Tolins Tyres IPO will be used for:

Repayment of Loans - ₹699.69 Million for repaying or prepaying certain outstanding loans, including any foreclosure charges.

Augmentation of Working Capital - ₹750.00 Million to support long-term working capital needs.

Investment in Subsidiary - ₹231.54 Million for Tolin Rubbers Private Limited to repay short-term and long-term borrowings and to augment working capital.

General Corporate Purposes

Tolins Tyres IPO Review

Tolins Tyres has established itself as a prominent tire manufacturer, with a diverse product range that includes tyres for two-wheelers, three-wheelers, Light Commercial Vehicles, and agricultural use. Dr. Kalamparambil Varkey Tolin, Chairman and Managing Director, has over three decades of experience in the rubber and tyre manufacturing industry, significantly contributing to the company's growth.

Financially, Tolins Tyres has shown consistent growth. Revenue increased from ₹1,143.86 Million in FY22 to ₹2,286.93 Million in FY24. EBITDA grew from ₹60.90 Million in FY22 to ₹463.74 Million in FY24, and PAT rose from ₹6.31 Million in FY22 to ₹260.06 Million in FY24.

The IPO offers shares with a pre-issue EPS of ₹9.52 and a post-issue EPS of ₹6.58. The pre-issue P/E ratio stands at 23.74x, while the post-issue P/E ratio is 34.34x, compared to the industry average of 34.17x. The company's ROCE and ROE for FY24 are 36.08% and 25.87%, respectively, indicating a fair valuation.

The potential listing gains, indicated by the Grey Market Premium, range between 28% and 30%. Given the strong financial performance and fair pricing of the IPO, we recommend investors to apply for the Tolins Tyres Limited IPO, both for potential listing gains and long-term investment opportunities.

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