Tolins Tyres debuts flat on NSE, BSE; hits 5% upper circuit post listing

Tolins Tyres IPO listing today: Tolins Tyres shares surged on their market debut, locking in a 5 per cent upper circuit at Rs 238.30 per share on the BSE, and Rs 239.40 on the NSE, following a lukewarm start on Monday.

Tolins Tyres shares listed at Rs 227 on the BSE, merely Re 1 higher than the IPO issue price of Rs 226, on Monday. Meanwhile, on the NSE, Tolins Tyres shares opened Rs 2 higher than the issue price at Rs 228.

However, the listing fell short of market expectations, as the unlisted shares of Tolins Tyres were trading at a premium of around Rs 30 or 13.27 per cent ahead of their listing, suggesting a modest listing gain for the company's shares.

 

Tolins Tyres IPO, a book-built issue of Rs 230.00 crores, comprises a fresh issue of 8,849,558 shares and an offer for sale of 1,327,434 shares with a face value of Rs 5 each. The allotment of the company's shares was finalised on Thursday, September 12, 2024.

The public issue garnered a favourable response from investors, with a bid for 17,89,26,528 equity shares against the 74,88,372 shares offered with the IPO. The Retail Individual Investors (RIIs) part fetched 21.52 times subscription, while the category for non-institutional investors got subscribed 27.41 times. The portion meant for Qualified Institutional Buyers (QIBs) received 25.42 times subscription.

Tolins Tyres raised Rs 69 crore from anchor investors on the bidding concluded on September 6, 2024, ahead of the issue opening for public subscription. The company proposes to utilise the net proceeds for the repayment and/or prepayment, in full, of certain outstanding loans (including foreclosure charges, if any) availed by the Company, as well as for the augmentation of long-term working capital requirements of the company.

The company also intends to utilise the primary investment in its wholly-owned subsidiary, Tolin Rubbers Private, to repay and/or prepay, in full, certain of its short-term and long-term borrowings and augmentation of its working capital requirements; and for general corporate purposes.

Tolins Tyres is a leading player in the tyre and treads industry and exports its products to 40 countries, including the Middle East, East Africa, Jordan, Kenya, and Egypt.