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NSE SME Viaz Tyres makes decent debut

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Capital Market
Last Updated : Mar 01 2023 | 12:31 PM IST

Shares of Viaz Tyres were trading at Rs 68 at 10:56 IST on the NSE, a premium of 9.68% as compared with the issue price of Rs 62.

The scrip was listed at Rs 68, same as its current trading price.

So far, the scrip hit a high of Rs 70 and a low of Rs 68. At the counter, 17.02 lakh shares of the company had changed hands till now.

The initial public offer (IPO) of Viaz Tyres received bids for 1,77,40,000 shares as against 32,26,000 shares on offer. The issue was subscribed 5.49 times.

The issue opened for bidding on 16 February 2023 and it closed on 21 February 2023. The issue price was fixed at Rs 62 per share. The equity shares are proposed to be listed on the EMERGE Platform of National Stock Exchange of India.

The IPO comprised fresh issue of 32,26,000 equity shares, aggregating up to Rs 20 crore. The market maker's portion is 1,62,000 equity shares. Post IPO, the promoter and promoter group shareholding will dilute to 73.07% from 99.20% pre-IPO. The issue and the net issue will constitute 26.33% and 25.01% respectively of the post issue paid up equity share capital of the company.

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The company intends to utilize the net proceeds from the issue for repayment or prepayment or part repayment of loan, working capital requirements, and general corporate purposes.

Viaz Tyres is engaged in manufacturing rubber tubes for bicycles, two and three wheelers, passenger vehicles and heavy load industrial vehicles. It also deals in ancillary products like off the road (OTR) Tyre tubes and animal driven vehicle (ADV) Tubes, engine oil and grease on white labeling bases. The company trades in tyres through exclusive distributorship of Maxxis Rubbers for sale of tyres in Turkey.

As on 30 September 2022, the company had 37 employees including on-roll labour, who looks after our business operations, production, quality control, commercial, finance, marketing & sales etc.

The company recorded a total revenue of Rs 23.54 crore and net profit of Rs 1.52 crore for the period ended on 30 September 2022.

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First Published: Mar 01 2023 | 10:58 AM IST

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